HHS Announces Restructuring Plan

HHS Announces Restructuring Plan

• On March 27, 2025, the U.S. Department of Health and Human Services (HHS) issued a Fact Sheet: HHS’ Transformation to Make America Healthy Again. The document outlines HHS' restructuring plan as part of an initiative to enhance efficiency and address chronic diseases in America. Key changes include significant personnel reductions and consolidating divisions and offices to streamline operations.
• HHS plans to decrease its workforce from 82,000 to 62,000 employees, with specific cuts at the Food and Drug Administration (FDA), the Centers for Disease Control and Prevention (CDC), National Institute of Health (NIH), and Centers for Medicare and Medicaid Services (CMS). The goal is operational efficiency while preserving critical functions.
• The number of HHS divisions will be reduced from 28 to 15, and regional offices will be cut from 10 to 5, centralizing functions such as Human Resources and IT to improve coordination and response to health crises.
• A new Administration for a Healthy America (AHA) will be established to coordinate chronic care and disease prevention programs, focus on low-income populations, and integrate various health resources.
• HHS will have a new Assistant Secretary for Enforcement to oversee the Departmental Appeals Board (DAB), Office of Medicare Hearings and Appeal (OMHA), and the Office for Civil Rights (OCR).
• HHS will combine the Assistant Secretary for Planning and Evaluation (ASPE) and Agency for Healthcare Research and Quality (AHRQ) into the Office of Strategy to conduct research that informs the Secretary’s policies and evaluates the effectiveness of the Department’s programs for a healthier America.

More on This Topic:

• Fact Sheet
• Press Release

For questions, please reach out to Vicky Jucelin.