Incident 1593: Purportedly AI-Powered Software Allegedly Used to Replace Montefiore Hospital Utilization-Review Nurses Despite Contractual AI Safeguards

Description: Montefiore Hospital in New York reportedly laid off 12 utilization-review nurses after changing the department's workflow and introducing AI-powered software. The nurses' union alleged that the technology replaced their work and violated contractual protections governing AI. Montefiore disputed that account and described the changes as part of a nonclinical paperwork program.
Editor Notes: Timeline notes: The incident ID date is 05/28/2026, based on the date 12 utilization-review nurses reportedly received layoff notices after disputed AI-related workflow changes at Montefiore Hospital. The layoffs took effect on 07/12/2026 amid union allegations that the deployment violated recently negotiated contractual AI safeguards, which Montefiore disputed. The incident ID was created on 07/16/2026.

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Incident Stats

Incident ID
1593
Report Count
3
Incident Date
2026-05-28
Editors
Daniel Atherton
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THE BRONX NEEDS REAL NURSES, NOT AI!
nysna.org · 2026

Bronx, NY-- Montefiore is planning to lay off real nurses and replace them with artificial intelligence (AI)-powered software. These are nurses who use their decades of bedside experience and clinical judgement to review insurance denials a…

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NYSNA Allege Montefiore Plans to Replace Some Nurses with AI Systems
norwoodnews.org · 2026

The New York State Nurses Association (NYSNA) alleged Wednesday, July 1, that Montefiore Health System, a private hospital system operating in The Bronx and Westchester Counties, is planning to lay off real nurses and replace them with arti…

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The New York nurses replaced by AI: ‘It should concern every patient who cares about quality of care’
theguardian.com · 2026

Marilyn Shuler has worked as a utilization review nurse for 39 years at Montefiore hospital in the Bronx in New York City, helping to read patient charts and communicate with insurance companies over coverage.

After nearly four decades in h…

Variants

A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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