• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Side Effects: Obamacare Accelerates Hospital Job Losses

    Repeatedly, reports have shown that Obamacare will increase job loss.  But what happens when those who are laid off are the workers meant to enable the health care law’s expanded access of care: namely, hospital employees?

    According to one hospital, layoffs of workers have already begun as a result of the new law. Leaders of Memorial Hospital in South Bend, Indiana, said that although “the economy sparked this problem…the Obama Health Care Reform Act gave the hospital a one-two punch. While more people may soon get more health coverage, Obama’s plan cuts reimbursement dollars for hospitals at a time administrators say they could use them most.”

    Obamacare includes $575 billion in cuts to Medicare to pay for a Medicaid expansion and a new entitlement program, which will provide generous subsidies for middle-class Americans to buy insurance. The cuts include slashes to hospitals’ reimbursement rates.

    Of course, cutting reimbursement rates is bound to have an effect on hospital operations.  Centers for Medicare and Medicaid Services Chief Actuary Richard Foster reports:

    “[P]ayment update reductions will create a strong incentive for providers to maximize efficiency, [but] it is doubtful that many will be able to improve their own productivity to the degree achieved by the economy at large.”

    “[P]roviders for whom Medicare constitutes a substantive portion of their business could find it difficult to remain profitable and, absent legislative intervention, might end their participation in the program (possibly jeopardizing access to care for beneficiaries). Simulations by the Office of the Actuary suggest that roughly 15 percent of Part A providers would become unprofitable within the 10-year projection period as a result of the productivity adjustments.”

    Health providers dropping Medicare patients is the worst case scenario, especially in light of the flood of baby boomers set to retire and join Medicare.  For now, many hospitals are preparing for revenue cuts as best they can. For Memorial Hospital, this means reducing the work force. “We expect that reality to get worse moving forward,”the health facility said.

    Obamacare is projected to insure 34 million more Americans by 2019. But by 2015, the nation will face a physician shortage of 63,000 doctors across all specialties, up from 39,600 before the law passed. The last thing the U.S. health care system needs is “reform” that encourages a reduction in its work force.

    Posted in Obamacare [slideshow_deploy]

    16 Responses to Side Effects: Obamacare Accelerates Hospital Job Losses

    1. Thomas A. Coss, Las says:

      Leading us out of the last recession of 2001/2002 was healthcare, accounting for 56% of the labor growth through 2007. This is yet on additional piece of evidence that it is the Government along with it's incoherent policies that is "stepping on the air hose" of this economy.

      The government has absolutely no instinct for, or understanding of its consequences beyond what can be foretold between now and next Tuesday, and we are foolish to believe otherwise.

      Everyone reading this note has a few things in common with each other, we do our own healing, and in the end, we do our own dying; no one does it for us. The question we're are faced with is whether we will have any choices on how either of those will be treated, managed or influenced.

      Tom Coss, RN

    2. Grace says:

      I don't like being forced to buy medicare at 65 or be penalized if I buy it later. This may mean I'm an "insured American" but it's not by choice.

    3. Brandon says:

      Great post!

    4. ThomNJ says:

      Not only are we forced to go into Medicare, the Congress violated our trust ages ago when they misrepresented that Social Security and Medicare were separate entities. If you don't wish to accept Medicare, you are also forced into giving up your Social Security payments. So the lifetime of government theft of your money is further completed if you decide you have the means to get your own private health insurance. You must have both or none.

    5. Cincinnati OH says:

      Out of touch with reality? The major issues escalating the cost of health care relate to the aging population, fraud and unnecessary procedures and the apparent low cost of heath care to the holders of group (especially Cadillac) policies. Group coverage is seen as a benefit for employees to use. Therefore, it is often abused because of the low out of pocket cost.

      The cost to the insurers continually escalates because Medicaid and Medicare doesn't pay the full cost of services. The unpaid balances increase the operating cost of doctor's offices, clinics and hospitals and is in turn charged back to non-Medicaid/Medicare patients, spiraling up the cost of services and insurance.

      So, how is government cutting back on reimbursement rates going to help this problem when it drives-up the cost of health insurance until. Health insurance becomes even more unaffordable and eventually everyone is on Medicaid? Sounds like a plan to me.

    6. Ace Sez Bishop, Ca. says:

      It's called Obamacare because no one else wants to put their name to it–not even the ignoramouses that voted for it—every single thing that Obama has done in the first half of his term has proven to be a disaster–including serious damage to our national security.

      Some pundit (I don't recall who) has mentioned that the Obamacare bill creates 116 new government agencies that will be key operatives in handling the format of the bill—ppl that have little to no experience/training in healthcare–just political appointments and guess who 'Acorn' Obama's buddies that raised millions for campaign funds in 2008—and promoted fraudulent election results—and are as hell bent on destruction of the Constitutional Gov't of the USA as Obama is.

      Buckle up folks–there is worse to come when the nation finds out we've been sold out to the UN by our terrorists from within!!

    7. Ron, Cinci Ohio says:

      Why doesn't the main street media start talking about this Health Care Plan.

    8. Blue Dog Michigan says:

      Obamacare must be repealed in its entirety!!!!!!

    9. Jeanne Stotler, Wood says:

      As a retired nurse, I am hearing from those still working about the increase in Nurse/patient ratio along with addional paper work. Think about it this way, you are assigned 8 patients, you work 7 of the eight hours (set by law) that leaves you about 52.5 min for each patient. This includes, giving meds, baths, dressing changes along with the required charting, ie: paper work. Now you wonder why nurses are leaving the profession, this is why, we go home frustrated as we know we can not give the proper care which includes listening to the patients concerns and answering questions from the family as well as listening to the MD's when they make rounds. Hospitals have been cutting back on CNA's and orderlies for some time and each cut means additional burden to the floor nurse. If there is an emergency or code on the floor you have even less time with the remaining patients as well if there are any admissions or discharges, these take additional time. Obama care has to go, it will be the ruination of health care here in USA.

    10. Pingback: Must Know Headlines 11.16.2010 — ExposeTheMedia.com

    11. Pingback: 21 State Lawsuit » Blog Archive » New report says ObamaCare will accelerate hospital job losses

    12. Pingback: Water Damage Tampa | B4b Sport

    13. Pingback: What can prospective employers legally ask about my employment history?  |  Your Great Info

    14. Leon Lundquist, Dura says:

      There was nothing wrong with American Healthcare before the Unaffordability Act. Nothing that 116 new government Agencies choc full of Progressives can 'produce.' Give them four years and American Health care will be so bad that Obama will Nationalize it!

      Here's my point. All those Agencies and Czars are usurping Representative Government. I'd like to see the Republican House drag all of Obama's gangster friends (especially the ACORN crowd) down to House Investigation Committees! Out of that Americans can see what the Progressives have done. Have you forgot? Communism is unlawful under the Constitution. "No! It is unlawful for the overblown Administrative Branch of Government to usurp the House.

      (They won't let the Republican House do anything else! So make 'em sorry!) Oh! Yes, I forgot. Impeach Obama. The corruption is in plain sight.

    15. Pingback: Audacity Of Obama

    16. Steven Cariati Glenm says:

      The above ramifications to Hospitals across the country and the enormous amount of new taxes that will be triggered with Obamacare, and the doc shortage and other untoward effects is the result of a Democratic Congress that is well meaning but blind. They are idealogues and feel that this will help the poor, and tell the world the USA is compassionate, feeling good that they passed this new entitlement. They also totally ignored the American public and went ahead with arrogance of forethought to gain more power for Government, but not government by the people and for the people. Rather Government of those who know better than the great unwashed-the American public. You cannot talk factually with idealogues; and so we now face the spectre of 2011 and 2012 of trying to repeal this Obamacare obomination. We can correct our healthcare weaknesses without more government. This law takes away our freedom of choice and spending our own money wisely. It taxes OUR hard earned reward of labor so the "elite" in government can spend it and puts in place a huge new bureacracy to tell us how to run our healthcare lives. Sad that these folks who shoved this down our throats have no care for what we think. Sad that this passage of Obamacare was a disgusting display of power politics of idealogues who know better than the folks who make the USA run every hour of every day. Repeal this Obamination!

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×