The US health care is a complex system of mechanisms and regulations that requires continuous improvement. This complexity leads to the fact that national healthcare has many shortcomings that need to be systematically and efficiently corrected. One such problem is budget cuts in hospitals, which result in layoffs of support staff, cuts in nurses’ salaries, and an increase in their workload. This problem significantly affects the work of the team and the quality of care. Consequently, this paper will consider the problem of staff reduction due to lack of budget, its causes, and consequences, to propose options for solving it. Causes and consequences of the problem The reduction in the hospital’s budget is a consequence of inefficient allocation and management of funds, as well as poor quality of services, which leads to the loss of clients. Park et al. (2018) examine the different payment models for the four primary health care categories and finds that they all have advantages and disadvantages. Our hospital uses a fee-for-service system that encourages usage of more services but is retrospective (Park et al., 2018). In other words, the hospital is not interested in saving money for their investment in improving hospital performance. Consequently, the lack of this opportunity deprives hospitals of one of the sources of budget increases and leads to the need to cut off support staff. In turn, the reduction in staff leads to an increase in nurses’ workload at lower salaries. This fact affects the team’s job satisfaction and the quality of their service because of the low motivation to work and the reduction in the time of service for each patient. Consequently, patient satisfaction with the quality of service decreases, and the likelihood of re-readmission increases (Pérez-Francisco et al., 2020). At the same time, according to Hospital Readmissions Reduction Program (HRRP), the financing of hospitals with a high level of readmission should also be reduced, since they do not demonstrate effective work. At the same time, Upadhyay et al. (2019) note that reducing readmission leads to revenue growth related to a decrease in re-treatment expenses. Thus, this situation leads to further budget cuts and a lack of funds for infrastructure changes and personnel. The Solution to the Problem The above analysis demonstrates that the hospital requires a change in the payment model, as well as the introduction of more efficient working methods for nurses. In the first case, the hospital can use the traditional capitation system combined with pay-for-performance presented in the article by Park et al. (2018). Traditional capitation involves raising funds before providing services, which gives the hospital flexibility and the ability to allocate resources efficiently (Park et al., 2018). However, since this approach has a risk of low-quality service provision, the pay-for-performance system helps avoid this disadvantage (Park et al., 2018). In other words, the hospital will receive prepayments (prospective payments) based on past months or years’ performance, and better quality will mean more budget. Thus, additional funds can be used to motivate or hire additional personnel, which will improve the quality of services, reduce the number of readmissions and make possible government funding. However, since this process is time-consum