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

Occurred
May 28, 2026
Published
Jul 2, 2026
Source
AI Incident Database

Summary

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.

Developers

  • Healthcare administrative AI developers
  • AI-powered utilization-review software developers

Deployers

  • Montefiore Medical Center
  • Montefiore Health System
  • Hospitals
  • Healthcare employers

Harmed parties

  • Workers displaced by automation
  • Registered nurses
  • Montefiore utilization-review nurses
  • Marilyn Shuler
  • Healthcare workers

Classification

Category confidence: 70%
Severity confidence: 80%

Rationale: AI replacing human workers raises labor and fairness concerns, though no direct harm or discrimination is confirmed.

Classifier: Qwen/Qwen3.5-35B-A3B-FP8

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