Hospitals Saying Health Reform Causing Layoffs

The Bureau of Labor Statistics says the healthcare industry is on track to see 124 mass layoffs affecting nearly 8,700 people by the end of 2012. Hospitals across the nation are laying some of the blame at the feet of health reform. Citing new reforms that tie Medicare reimbursement to patient outcomes and quality measures, hospitals are rethinking the way they run their businesses.   Adirondack Health in New York recently cut 17 jobs and left another eight vacant in addition to outsourcing medical transcription services. Adirondack Health President and CEO Chandler Ralph says that shrinking federal and state reimbursements contributed to their decision, “the models of yesterday are not the models of tomorrow for delivering healthcare. It’s all good, the direction we’re going in, keeping people at home and not being readmitted to the hospital, but that has a definite effect on the volume going forward, and whenever you reduce volume, you have to reduce staff accordingly.”