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Hospitals Lay Off 1,000s, Obama-Care Not Blamed

From USA Today:

A job engine sputters as hospitals cut staff

By Paul Davidson and Barbara Hansen | October 13, 2013

Hospitals, a reliable source of employment growth in the recession and its aftermath, are starting to cut thousands of jobs amid falling insurance payments and inpatient visits.

The payroll cuts are surprising because the Affordable Care Act (ACA), whose implementation took a big step forward this month, is eventually expected to provide health coverage to as many as 30 million additional Americans.

"While the rest of the U.S. economy is stabilizing or improving, health care is entering into a recession," says John Howser, assistant vice chancellor of Vanderbilt University Medical Center.

Health care providers announced more layoffs than any other industry last month — 8,128 — largely because of reductions by hospitals, according to outplacement firm Challenger Gray and Christmas. So far this year, the health care sector has announced 41,085 layoffs, the third-most behind financial and industrial companies

Lest we forget, the SEIU is represents most healthcare workers. Where is their outrage?

This month, Indiana University Health laid off about 900 workers as part of a move to trim its budget by $1 billion over five years. Vanderbilt plans to eliminate 1,000 jobs by the end of the year to help shave operating costs 8% a year. The Cleveland Clinic is offering buyouts to 3,000 employees as it shaves its annual operating costs by $330 million

There are myriad reasons for the cuts, which are affecting administrative staff as well as nurses and doctors:

• Medicare, Medicaid and private insurance companies are all reducing reimbursement to hospitals. The federal budget cuts known as sequestration have cut Medicare reimbursement by 2%, the American Hospital Association says.
• The health care law has further reduced the Medicare payments to hospitals that provide lower-quality service or have high readmission rates.
• The National Institutes of Health reduced funding to hospitals by 5% as part of sequestration, forcing hospitals to trim research staff.
• As more Baby Boomers turn 65, their services will be reimbursed at Medicare rates that are lower than those of private payers, putting further pressure on hospital revenue.

Lest we forget, Obama took $700 billion from Medicare to give to Obama-Care. Which is why we are getting the cuts listed above. And also bear in mind that the sequester was also Obama’s idea.

This article was posted by Steve on Monday, October 14th, 2013. Comments are currently closed.

One Response to “Hospitals Lay Off 1,000s, Obama-Care Not Blamed”

  1. canary says:

    Insurance is denying more procedures too. They can’t handle the enormous weight placed on them.
    Still, medical costs and prescriptions are just skyrocketing off this planet.

    And to think Obama is quoting Warren Buffet that the Government close-down damage will be equivalent to the nuclear bomb in WWII. Shame on them. Shame on Obama for saying we are not in debt, etc. He has gotten away with so many lies that he sounds like leaders in communists countries like China.

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