Hospitals Fear Job Cuts
The American Hospital Association is warning that proposed federal Medicare cuts could cause the loss of 278,000 jobs across the country over the next 10 years.
A new report, written by consulting firm Tripp Umbach for the AHA, discusses the potential effects of two pieces of legislation: the Budget Control Act of 2011, which was passed last year to resolve conflict over the federal debt ceiling, and a new bill passed by the House of Representatives, H.R. 3630.
The Budget Control Act includes cuts of 2 percent each year from 2013 to 2021 in Medicare payments to providers, which add up to $41 billion, according to the report. H.R. 3630 adds another $19.9 billion in cuts to hospitals.
Because two thirds of hospital spending goes to personnel costs, the report says the cuts would result in significant layoffs.
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