About a dozen people were laid off from Sierra Medical Center and Providence Memorial Hospital last week.
A spokeswoman for Sierra and Providence told ABC-7 the need for some services has shifted.
"Across Sierra Medical Center and Providence Memorial Hospital, we reduced a small number of current and vacant positions from our workforce," a statement she sent us said.
Last week, United Healthcare sent a letter to some of its El Paso policy holders who have used Sierra Medical Center.
United's letter said it's been unable to reach an agreement with Sierra Medical Center on providing services next year and that Sierra might not be part of its preferred provider network next year.
A Sierra spokeswoman said that development is unrelated to the layoffs.
ABC-7 called United and were told it now expects to reach a new agreement once the current one expires at the end of the month.
The Sierra Medical Network has over 3,000 employees in El Paso.