Medicare Cuts Threaten 766K Healthcare Jobs, Groups Say

John Commins, for HealthLeaders Media , September 13, 2012

"We are coupling our concern with the yearly issue of the potential 27% cut in the sustainable growth rate," he says. "This adds another level of uncertainty for physicians so we want them to know about it and what we are doing on it."

Caroline Steinberg, vice president for trends analysis with the American Hospital Association, says the jobs report demonstrates the importance of the healthcare sector to the economic well-being of the nation. The report estimates that nearly 500,000 jobs will be lost in the first year of the sequester.

"Few people really recognize the impact of healthcare on the economy," Steinberg says. "Healthcare is really an economic mainstay and healthcare job growth has remained strong throughout the economic downturn. It's a message that people need to hear what is often missed in the larger debate."

"With healthcare services the spending often stays in the community," Steinberg says. "When you spend a dollar on healthcare, 60% of that dollar is going to go to creating jobs at that hospital in the community. If you spend a dollar a Wal-mart a lot of that money is going to go to China because a lot of the products are made in other countries. That is why healthcare has a pretty high multiplier relative to other industries."

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5 comments on "Medicare Cuts Threaten 766K Healthcare Jobs, Groups Say"

Joan Benson RN (9/17/2012 at 10:10 PM)
I agree with Judy RN,trying to make money off the ill is sad,and lets not mention the healthcare disparities,duplication of test, and delayed treatments that goes on in some of these hospitals. EVERYONE should have the same quality of care, whether you have one million or one dollar. Hopefully if there are cuts they will start at the enormous top heavy hospital administration, since many have the highest paid salaries and the rest could be used for providing quality patient care!

Stephanie Newell (9/17/2012 at 1:46 AM)
According to this article, in summation, healthcare access will be significantly diminished to the masses due to the revenue cuts. Is this not complete opposition of what had been promised? President Obama has promised everyone will be covered by health insurance. That is fabulous. However, if you take away the providers by cutting jobs, then what good has come from making sure everyone has health insurance? This is epitome of robbing from Peter to pay Paul. The icing in the cake is we'll be insured to have no healthcare providers .

Todd Madden (9/16/2012 at 10:21 AM)
So by Steinberg's logic we should raise taxes as much as possible so that everyone has a job. Lets shoot for 0% unemployment. Good luck with that. Also, should we just pursue another failing "Buy America" campaign? I mean if a GE MRI is made in Florence, SC and used in a Sacramento, CA hospital, that is ok but a product sourced from Mexico, China or India is bad even if it saved significant money? Her argument has about as many holes as swiss cheese.




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