JACKSON, Mich.--()--MiraMed, Global Services, Inc. (MiraMed) knows Friday, March 1, marks the day in which across-the-board spending cuts (to the tune of $85 billion) take effect. Regardless of one’s political position and opinion, it is undeniable that the impact on healthcare will be great, especially in the employment sector of the industry as well as with Medicare.
While the cuts to the Food and Drug Administration, National Institutes of Health and grant money for Health Insurance Exchanges are certainly great and will be felt across the board, one of the key impacts will be to employment. A report released last year by the American Hospital Association, the American Nurses Association and the American Medical Association, The Negative Employment Impacts of the Medicare Cuts in the Budget Control Act of 2011 (Report), explores the impact the sequester will have on employment in the healthcare industry.
|[D]uring the first year of this sequester, more than 496,000 jobs will be lost. This includes those workers directly employed by the health care sector, as well as other jobs supported by the purchases of health care organizations and their employees (the so-called “multiplier effect”). This number will swell to 766,000 fewer jobs by 2021. These job losses will affect many economic sectors beyond health care, and will be spread across every state with more than 78,000 jobs lost in California alone by 2021.|
According to the Report, hospitals will feel the most impact of the decreased employment in the healthcare sector.
Another significant matter is Medicare cuts. There are concerns over how the 2% cuts will be put into place. There are discussions regarding cutting 2% from everybody equally—physicians, hospitals, etc., but many worry that this method will not be effective and, thus, some sectors (e.g., hospitals) may have to prepare for more.
As the country watches March 1 quickly approach, if Congress takes no action, the healthcare industry is bracing itself for immense and intense cuts, both financially and in its workforce. While many details remain unknown, what we can predict is that the effects of the sequester could change the direction of healthcare for years to come.
Headquartered in Jackson, Michigan, MiraMed Global Services stands as the premier global provider of business process outsourcing solutions to healthcare organizations nationwide. MiraMed partners with hospitals, health networks, physician practices and related industry service organizations to provide a broad portfolio of customizable solutions, uncover and capitalize on hidden financial opportunities, improve productivity and ultimately increase profits.
MiraMed pairs healthcare industry experts with world-class processes, infrastructure and technology to deliver meaningful and measurable results. This proprietary model enables sustainable change by delivering a complete, customizable "end-to-end" solution devised to meet a client's own unique financial and organizational needs.