As ObamaCare Kicks In, Hospitals Forced to Reduce Budgets, Cut Jobs

The New American

Written by  Bob Adelmann

Just as the economy appears to be improving slightly, one of the prime drivers — the healthcare industry — is faltering, according to John Howser at Vanderbilt University Medical Center. "While the rest of the U. S. economy is stabilizing or improving, health care is entering into a recession," he observed.
Vanderbilt is in the process of eliminating 1,000 jobs by the end of the year as it trims its operating expenses, thanks to cuts in reimbursements and employee mandates under ObamaCare. Indiana University Health has already laid off 900 workers, while the Cleveland Clinic is offering early retirement to 3,000 of its employees. Said Eileen Shell, executive director at the Cleveland Clinic Foundation:

Some of the [budget cuts] include offering early retirement to 3,000 eligible employees, reducing operational costs, [slowing] the filling [of] vacant positions, and lastly [cutting the] workforce.

Putting the best possible spin on the matter, she added, "To prepare for healthcare reform [ObamaCare], Cleveland Clinic is transforming the way care is delivered to patients."
Once that “transformation” is completed, her patients may discover the realities of government intervention into the healthcare industry: fewer jobs, more delays, higher costs, and fewer choices — just the opposite of what the president promised.
Back in November, Gary Bauer, president of American Values, told OneNewsNow.com,

The ripple effects, the negatives on our economy, are going to be playing out not just for months but for years.

And I doubt we will ever be able to totally measure the complete cost in manpower and money — in addition to taxes — that Obamacare will end up costing the American people, proving once again that there is no such thing as a free lunch, and there is no such thing as free healthcare.

The cost savings promised that would help provide coverage for 30 million Americans currently without it aren't real, according to Bauer. Instead, they come from cutting the fees paid to doctors and hospitals:


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A job engine sputters as hospitals cut staff

Paul Davidson and Barbara Hansen, USA TODAY 7:34 p.m. EDT October 13, 2013

Hospitals are cutting thousands of jobs, undercutting a sector that was a reliable source of job growth, even through the recession.

(Photo: Kyle Grillot, AP)

Story Highlights

• Hospitals face lower insurance reimbursement
• New health care law encourages fewer hospital stays
• Twenty-six states rejected expanding Medicaid, a revenue source for hospitals

 

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.
Total private hospital employment is still up by 36,000 in the past 12 months, but it's down by 8,000 since April, and more staff reductions are expected into next year.
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.
"This is a challenging time for the health care industry," says Jim Terwilliger, president of two of Indiana health's hospitals. "The pace of change is far greater than any time in recent history."
There are myriad reasons for the cuts, which are affecting administrative staff as well as nurses and doctors:


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