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    4. HHS is undergoing a major restructuring

      Articles

    Article

    HHS is undergoing a major restructuring

    April 1, 2025

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    By Whitney Phelps

    Changes at HHS aim to enhance efficiency by reducing workforce, consolidating divisions and regional offices, and centralizing services.

    The US Department of Health and Human Services (HHS) is undergoing a major restructuring under President Trump’s Executive Order, “Implementing the President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative.” This initiative aims to enhance efficiency and reduce redundancy.

    Key Changes in the Restructuring Plan:

    • Workforce Reduction: HHS will decrease from 82,000 to 62,000 full-time employees, in large part, related to streamlining and centralizing certain operations such as HR, IT, Procurement, External Affairs, and Policy.
    • Division Consolidation: The number of divisions will reduce from 28 to 15.
    • Regional Streamlining: The 10 regional offices will consolidate into five.
    • Centralized Services: HR, IT, Procurement, External Affairs, and Policy functions will be centralized to improve efficiency.

    Structural Realignments and Division/Agency/Office Adjustments:

    • A new division will be created—the Administration for a Healthy America (AHA)—which will consolidate the Office of the Assistant Secretary for Health (OASH), Health Resources and Services Administration (HRSA), Substance Abuse and Mental Health Services Administration (SAMHSA), the Agency for Toxic Substances and Disease Registry (ATSDR), and the National Institute for Occupational Safety and Health (NIOSH) to better coordinate chronic disease prevention and healthcare access for low-income Americans.
    • The position of Assistant Secretary for Enforcement will be created to oversee and provide enforcement related to the Departmental Appeals Board (DAB), Office of Medicare Hearings and Appeal (OMHA), and Office for Civil Rights (OCR) to combat waste, fraud, and abuse.
    • An Office of Strategy will be formed merging the Assistant Secretary for Planning and Evaluation (ASPE) and the Agency for Healthcare Research and Quality (AHRQ) to conduct research supporting evidence-based policymaking.
    • Programs under the Administration for Community Living (ACL) that support older adults and people with disabilities will now be overseen by the Administration for Children and Families (ACF), Assistant Secretary for Planning and Evaluation (ASPE), and the Centers for Medicare and Medicaid Services (CMS).
    • The CDC will focus on epidemic and outbreak response with the Administration for Strategic Preparedness and Response (ASPR) to be moved under the CDC to enhance coordination.

    If you are a healthcare stakeholder regulated by HHS, it is important to understand how the restructuring of the Offices of the Secretary and the Operating Divisions may impact you. For instance, if you receive funds from SAMHSA or HRSA, you will now be dealing with AHA. Issues related to data privacy overseen by OCR will now be overseen by the Assistant Secretary for Enforcement and AHRQ will now be under the Office of Strategy.

    Nixon Peabody is closely monitoring the changes resulting from the new administration that impact all healthcare stakeholders. If you have any questions on how these changes might affect your organization, our healthcare attorneys are ready to provide you with the guidance you need to navigate this transformation.

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    The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

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