Indiana hospital chain fires 865 employees because of Obamacare

elections have consequencesMore job losses because of Obamacare.

J.K.Wall reports for Independent Business Journal, June 28, 2013, that St. Vincent Health — the second-largest hospital system and the 6th-largest employer in Indiana, with 22 hospitals employing about 17,300 people — announced it will eliminate about 865 jobs to reduce its labor costs by 5%.

The job cuts are to save money as Obamacare (Patient Protection and Affordable Care Act) and Congressional budget cuts promise to take a bite out of hospital reimbursement rates. Obamacare calls for $155 billion in cuts to hospitals’ Medicare payments over 10 years. Then the fiscal-cliff deal on Jan. 1 of this year chopped out another $15 billion. And the budget sequester, which hit March 1, looked ready to sap another $10 billion.

All hospitals are trying to cut expenses drastically, by as much as 25%, in order to prepare for a future they expect to be far more austere than the past. With personnel typically accounting for 60% of hospital expenses, staff reductions are an inevitable part of that process.

But St. Vincent’s layoff announcement is the largest single reduction to date among Indiana’s largest hospitals. People familiar with the cuts said the reductions are heavy in the administrative ranks.

St. Vincent Health’s outgoing CEO Vince Caponi said in a statement: “We know the lives of many people have been affected by our decisions, and we made it a priority to treat all employed and contracted associates with kindness and respect. As these decisions were difficult, we are confident that our ministry will be positioned to continue to lead in the areas of quality, safety and patient experience in service to our communities across the state. We are praying for all associates and their families.”

H/t California Political News & Views

~Eowyn

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lindarm
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This whole thing is destroying commerce, service, and individuals. I think it is deliberate. Welcome to the third world preview

Anonymous
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Anonymous

Yeah, “social justice” because everyone’s equally destitute except for the “politically-correct” err… -connected who loot the public trough and punish folk they don’t like in order to do their part

Auntie Lulu
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Auntie Lulu

Let’s just hope that a goodly proportion of those being laid off were those who voted to elect our current President in both 2008 and in 2012. It’s always a good thing that those who vote to support be the very ones who get to feel the results of their vote. I will earnestly pray for those who do not fall in that category; I can only imagine the fear and dismay that they are feeling right now.

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Harriet Nelson
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Auntie LULU you took the words right out of my mouth. I have been trying to see the silver lining in everything that has been going on. That lining is that Payback is a BITCH! The only thing I can add to all the people that follow this blog, is take any and all un needed cash out of the banks It wont be much longer. Just hold on.

Ted Nougat
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Ted Nougat

Sacred Heart here in Pensacola, FL, has recently let people go very suddenly. My friend (who was a casualty) understood it as a result of “sequestration.” Regardless, they are operating in the Red – which is not at all normal – and it’s not good.

tina
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they will replace everyone with foreign workers-watch.

Doc's Wife
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Doc's Wife

Our very small hospital in this rural mountain town has resorted to laying off RN’s who have been on staff for many years and are hiring new graduates who will work for much less. Sorry SOB’s!!

DCG
Admin

Just the beginning….hopeandchange baby!

Laserboy
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Laserboy

i hope the CEO walked through the parking lot and fired everyone that had an obama/biden bumper sticker.

japoa
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In total agreement . Decisions , like voting , have there consequences . I f they are dumb enough to vote for a Chicago politician for pres. , they deserve what they get ; the bath-house treatment . With no lube………..

Robert
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Robert

The Obama regime is holding America back, nothing less. Look it’s obvious that hospitals are going to hurt under ObamaCare but wait until it hits you. All these raging morons including unions are now fighting to get out of it. How great is that? Why would they want to givin that we where told by these very same groups of how great ObamaCare was.
The bottom line Obama isn’t a liberal or a progressive but a regressive working to kill the American spirit. All in the name of (fill in the blank). This is a perfect example.

me4commonsense
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me4commonsense

It won’t affect those who voted for BO b/c those people don’t work.

pnordman
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pnordman

Because of my Christian values I have tried to view SOB-O as naïve – just not polished enough to know what he’s doing, etc., etc., etc. Wow, no more, gave up that naïve thought myself long ago.. This guy has a plan and he’s rushing it through. He’s so devious, too – that should prove whose pocket he lines. Yep, folks, satan is alive and well and flourishing! And I think Tina’s right, just watch, the foreign workers will get the jobs. SOB-O hates America! He has proved it by every thought and action since he ensconced his lazy arse… Read more »

Annoyed
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Annoyed

Hospitals charge rediculas amounts to indaviduals and rape the patients in their care. I don’t feel sorry for them one bit however I do for the employees of ever so greedy healthcare practices as it is not their fault.

Laserboy
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Laserboy

I agree that healthcare costs are too high. But the government sticking their noses into private business is not the answer. I’ve worked in hospitals all of my life and government regulations are the cause of a lot of the costs that make the bills so high. Also costs are high because of malpractice insurance/lawsuits. (Lawyers are the cause of most of this country’s problems) And the waste in government hospitals is unbelievable. 4 in 10 workers in gov’t hospitals are nothing more than welfare reciepents that have to be somewhere 8 hours a day – useless – indeed they… Read more »

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joandarc
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joandarc

Thank you Dr. Eowyn for this interesting post. Obamacare is so protective and affordable, isn’t it? Dear God, please help us! Dear God, please help us! Dear God, please help us!

Fast Ed
Guest

Does Obamacare really cut Medicare Benefits to Senior Citizens? NO!!! As you may be under the impression that the legislation will cut payments to physicians by 21% and institute draconian cuts in payments to hospitals, let’s set the record straight on this at the outset so we can dispose of this bit of disinformation. Physicians have faced a 21% cut in payment from Medicare long before Obama became president and, thus, long before health care reform was more than a gleam in the eye of its proponents. The threatened cuts are the result of a formula (“SGI”) established during the… Read more »