J.K.Wall reports for Independent Business Journal, June 28, 2013, that St. Vincent Health — the second-largest hospital system and the 6th-largest employer in Indiana, with 22 hospitals employing about 17,300 people — announced it will eliminate about 865 jobs to reduce its labor costs by 5%. The job cuts are to save money as Obamacare (Patient Protection and Affordable Care Act) and Congressional budget cuts promise to take a bite out of hospital reimbursement rates. Obamacare calls for $155 billion in cuts to hospitals’ Medicare payments over 10 years. Then the fiscal-cliff deal on Jan. 1 of this year chopped out another $15 billion. And the budget sequester, which hit March 1, looked ready to sap another $10 billion. All hospitals are trying to cut expenses drastically, by as much as 25%, in order to prepare for a future they expect to be far more austere than the past. With personnel typically accounting for 60% of hospital expenses, staff reductions are an inevitable part of that process. [1] visiontoamerica/15404/indiana-hospital-chain-fires-865-employees-because-of-obamacare/
Posted on: Tue, 09 Jul 2013 02:43:01 +0000
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