It’s simple math. Cutting funding will lead to job losses. In this case, the $10.7 billion cut to Medicare funding scheduled for next year is estimated to cost the healthcare industry 496,000 jobs. 
Tripp Umbach, a provider of economic impact analysis for hospitals and health systems, published a report that analyzed the economic impact of the Budget Control Act of 2011 (BCA), which mandates a 2% sequester of Medicare spending from 2013 until 2021. According to Tripp Umpach, the sequester will lead to a loss of 766,000 jobs by 2021. The report was sponsored by the American Hospital Association (AHA), the American Medical Association (AMA) and the American Nurses Association (ANA) who have joined together to voice their concern with the cuts and urge Congress act. “This new report shows that the sequester of Medicare spending will lead to the loss of hundreds of thousands of jobs,” AMA President Jeremy A. Lazarus, M.D said in a press release. “Coupled with the looming 27 percent Medicare physician payment cut, this 2 percent sequester will hurt patient access to care and will inject more uncertainty into our Medicare system. We need stability in Medicare physician payment as we work to improve our nation’s Medicare payment and delivery system to promote high-quality, high-value, better-coordinated care to our patients.” Caroline Steinberg, vice president for trends analysis with the American Hospital Association, told HealthLeaders Media that cuts to healthcare spending have a large impact on jobs. “With healthcare services the spending often stays in the community,” Steinberg said. “When you spend a dollar on healthcare, 60% of that dollar is going to go to creating jobs at that hospital in the community. If you spend a dollar a Wal-mart a lot of that money is going to go to China because a lot of the products are made in other countries. That is why healthcare has a pretty high multiplier relative to other industries.” According to the Associated Press, President Obama has called for replacing the sequester with tax hikes and other budget cuts, but Congress is deadlocked on the issue.
Tripp Umbach, a provider of economic impact analysis for hospitals and health systems, published a report that analyzed the economic impact of the Budget Control Act of 2011 (BCA), which mandates a 2% sequester of Medicare spending from 2013 until 2021. According to Tripp Umpach, the sequester will lead to a loss of 766,000 jobs by 2021. The report was sponsored by the American Hospital Association (AHA), the American Medical Association (AMA) and the American Nurses Association (ANA) who have joined together to voice their concern with the cuts and urge Congress act. “This new report shows that the sequester of Medicare spending will lead to the loss of hundreds of thousands of jobs,” AMA President Jeremy A. Lazarus, M.D said in a press release. “Coupled with the looming 27 percent Medicare physician payment cut, this 2 percent sequester will hurt patient access to care and will inject more uncertainty into our Medicare system. We need stability in Medicare physician payment as we work to improve our nation’s Medicare payment and delivery system to promote high-quality, high-value, better-coordinated care to our patients.” Caroline Steinberg, vice president for trends analysis with the American Hospital Association, told HealthLeaders Media that cuts to healthcare spending have a large impact on jobs. “With healthcare services the spending often stays in the community,” Steinberg said. “When you spend a dollar on healthcare, 60% of that dollar is going to go to creating jobs at that hospital in the community. If you spend a dollar a Wal-mart a lot of that money is going to go to China because a lot of the products are made in other countries. That is why healthcare has a pretty high multiplier relative to other industries.” According to the Associated Press, President Obama has called for replacing the sequester with tax hikes and other budget cuts, but Congress is deadlocked on the issue.
