Medicare Cuts, Obamacare Prompt Hospital Layoffs

Photo Credit: AP

Photo Credit: AP

Many hospitals are slashing jobs and cutting patient services citing Medicare cuts, the difficult health care landscape, and the Affordable Care Act as the reasons behind their decision.

Over a dozen hospitals have announced job cuts in the past three weeks, the Washington Free Beacon found. Some hospitals announced they would close altogether, while others are downsizing and eliminating some of their services.

Connecticut’s Lawrence + Memorial Hospital announced last week it was cutting 33 jobs, citing the “sheer magnitude” of payment cuts from both Medicare and Medicaid.

“L+M and other hospitals are contending with massive structural changes that are happening very rapidly,” hospital president and CEO Bruce D. Cummings said in a statement. “We are also experiencing unexpected—and previously unbudgeted—cuts in federal (Medicare) and state (Medicaid) funding. “

“The sheer magnitude of the Medicare and Medicaid cuts impel us to look at all of our services and costs, including the largest component of our budget—personnel,” Cummings said, citing a 20 percent cut in Medicaid proposed by Democratic Gov. Dannel Malloy and approved by the state legislature resulting in a $550 million hit to Connecticut hospitals. Sequestration also resulted in an additional $1 million loss for L + M this year.

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