Healthcare Industry Already Cutting Jobs

 

 Newsmax

VERBATIM

More than 41,000 healthcare workers have been laid off so far this year, and much of the blame goes to Obamacare.

The cuts have affected mostly hospital staffing in response to reduced reimbursement rates for Medicare patients under the sequester, and cuts for some providers under the Affordable Care Act, according to an article by Kevin D. Williamson for National Review Online.

Private insurers are also reducing payments.

The sequester will probably be repealed at some point, but the effects of Obamacare will likely remain, Williamson warns.

The Independent Payment Advisory Board (IPAB) is required by the healthcare reform act to reduce the growth of Medicare spending. The bill also bars the IPAB from raising Medicare premiums or rationing care, so most of any savings will come from reduced Medicare payments to providers.

Also, the aging of the U.S. population means that a larger share of healthcare will be paid at Medicare rates in future years. That will put financial strain on hospitals, so hospitals have begun cutting back.
Some hospitals will reportedly be forced to close due to the reduced Medicare payments.

The job cuts will pose problems for the economy as well as healthcare. The number of jobs in healthcare — including not just doctors and nurses but clerical staff, billing specialists, and others — grew by 63 percent from 1990 to 2008, accounting for one out of every four jobs created during that period.

Also, healthcare is a sector that has enjoyed relatively strong growth in inflation-adjusted wages in recent decades.

"Losing that means losing a big piece of the employment picture, not just in total jobs but in real income," observes Williamson, author of the new book "The End Is Near and It's Going to Be Awesome."

"Which puts us in a difficult position: Cutting Medicare and Medicaid spending will have ill effects on the job market, but not cutting Medicare and Medicaid spending will bankrupt the country."

Editor's Note:

• Urgent Obamacare: Millions to Lose Healthcare Coverage, Radical Cuts to Medicare