While the overall cut to Medicare is a relatively small percentage cut, just 2%, the double-digit dollar figure will put hospitals in a tough spot.
"Hospitals will have to make tough choices about which services to maintain because of potential cuts since hospitals will maintain the highest quality for whatever services they provide," says Marie Watteau of the American Hospital Association.
The AHA already knew a 2% cut to Medicare would heavily impact hospitals. It, along with the AMA and ANA issued its own report, also last week, stating 766,000 healthcare and related jobs would disappear by 2021 if the sequester went into effect.
In a state-by-state comparison, California is shown to be hit the hardest with more than 50,000 job losses forecast for next year alone. The California Hospital Association says the Medicare sequester adds pressure to an already tense budget environment.