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Medicare Cuts Threaten 766K Healthcare Jobs, Groups Say

John Commins, for HealthLeaders Media, September 13, 2012

The cuts were mandated by the Budget Control Act of 2011 as part of an agreement to raise the debt ceiling after a bipartisan "Super Committee" failed to negotiate a balanced budget deal. If a new deal can't be hammered out by Jan. 1, cuts totaling $1.2 trillion will kick in automatically against military and domestic programs.

Congress will take up the issue again after the November general election. Several Congressional leaders from both parties said this week that they anticipate a successful resolution, but House Speaker John Boehner, (R-OH) told reporters that he is "not confident at all" that a deal would be finalized.

The healthcare sector has been one of the few bright spots for job growth over the last decade and through the Great Recession. In August, healthcare created 16,700 new jobs, 17.3% of the 96,000 new jobs in the overall economy for the month.

So far this year, healthcare has created 197,300 jobs, nearly 18% of the 1.1 million jobs created by the overall economy. Since January 2008 healthcare has created 1.2 million jobs in an economy that has otherwise seen a net loss of 4.7 million jobs over the same period. 

 


John Commins is a senior editor with HealthLeaders Media.

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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.