Montefiore Health System allegedly planning to replace utilization-review nurses with AI software
The New York State Nurses Association alleged that Montefiore Health System plans to lay off 12 utilization-review nurses and replace them with AI-powered software provided by Datavant, claiming this violates a recently negotiated labor contract. Nurses raised concerns that untested AI could fail to handle complex cases properly and worried about private patient records, including sensitive health information, being shared with a company connected to Palantir.
What happened
The New York State Nurses Association (NYSNA) alleged on July 1 that Montefiore Health System is planning to lay off 12 utilization-review nurses and replace them with AI-powered software provided by Datavant. Utilization review nurses read patient charts and make cases to insurance companies for coverage of doctor-ordered care.
NYSNA nurses hosted a virtual town hall to discuss Montefiore's plan. Marilyn Shuler, a utilization review nurse at Montefiore for 39 years, stated: 'What we want from Montefiore is simple: stop the layoffs, keep a licensed nurse on the final review, use AI to support us instead of replacing us, and sit down with the nurses who actually do this work.' Shaiju Kalathil, RN, an NYSNA Executive Committee member at Montefiore, said: 'This is a violation of the contract that we recently won by going on strike.'
Reported impact
Nurses raised concerns that replacing clinical judgement with AI could mean complicated cases are dropped, resulting in missed diagnoses or unapproved surgeries. The union stated that replacing real nurses with AI is 'terrible for workers and the economy in the Bronx' and could have negative consequences for patients.
Nurses expressed concerns about Montefiore outsourcing access to private medical records, including potentially sensitive information, to Datavant, which they noted has connections to Palantir and a history of data breaches.
Index analysis
The union described the AI software as 'untested' and said Montefiore is 'gambling, without evidence, that AI can do a better job' than nurses. Nurses questioned whether AI could adequately handle the clinical judgement required in utilization review work.
Governance controls
NYSNA stated that the layoff plan violates the contract nurses recently won by going on strike. City Council Member Shirley Aldebol called on Montefiore to 'abide by the nurses' contract by engaging in meaningful discussion about any plans to implement AI or other technology that could replace real nurses.'
Classification
Sources and evidence
Sources not yet published
This record was researched and written by the Index from original reporting. Its sources are still being verified by an editor, and they are listed here once that check is complete. Until then the record carries no reviewer.