Hospitals Cutting Staff in Response to Medicare Cuts

Nf1Ib_AuSt_74Researchers found that hospitals eliminate 1.7 full-time jobs for every $100,000 drop in Medicare revenue, and nurses accounted for one-third of those cuts. On average, hospitals do not appear to make up for Medicare cuts by “cost shifting,” but by adjusting their operating expenses over the long run, the study says. The Medicare price cuts in the Affordable Care Act will significantly slow the growth in hospitals’ total revenues and operating expenses.

Study here. We’ve previously reported that cuts affect patients.

Comments (12)

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  1. Connor says:

    Just more extreme effects from Obamacare

    • Scott says:

      And more…

      “Affordable Care Act will “bend the curve,” that is, significantly slow the growth in hospitals’ total revenues and operating expenses.”

  2. Lucas says:

    “These descriptive findings suggest that hospitals facing large Medicare cuts do not make up for lost Medicare revenues with increased revenues from other payers—if they did, their overall revenue trends would be similar to other hospitals.”

    As expected

    • Connor says:

      Yes, it sounded as if in the document they were also not surprised of the findings. Their models were spot on.

  3. MCC says:

    We really need to start worrying when doctors income starts to drop. I’m not advocating that they should price gouge to maintain those high levels on income, but maintaining the profession as highly competitive is key.

    • Howard says:

      Don’t worry about their incomes, worry more about their freedoms and ability to work with their patients.

      • Rudy says:

        Not sure if I’m following what you are saying. There’s always going to be a demand for docs

  4. Buster says:

    I’ve heard about this. Hospitals anticipate Accountable Care Organizations impacting their revenue and are making cutbacks to compensate. Why was this not expected?

  5. James says:

    Also shows how that staff was never needed in the first place.

    • Crawford says:

      It certainly pushes for greater efficiency, but I’m not so sure that the staff was/is not needed.

  6. Randall says:

    WOW! Can you just imagine what all of this would look like if you just take government out of the picture?