**Posted by Phineas
And the good news (1) keep rolling in:
Hospital layoffs and the Affordable Heath Care Act
The Affordable Care Act is designed to make health care easier to get, but now, one local hospital says Affordable Health Care is the reason it is laying people off.
Clifton Springs Hospital let almost 60 non-clinical employees go last Friday. Hospital officials says it’s all because they’re trying to get ready for the impact of the new health care act. The act changes the way health insurance is run and the way hospitals are paid.
The Affordable Care Act means many of you will be making more decisions when it comes to your own health care. Health care workers say co-pays and deductibles will be higher, that means things like x-rays and MRI’s will cost you more. So people will be forced to decide if they really want them. That might mean fewer people in the hospital.
Clifton Springs Hospital is preparing for that now. Last Friday, Clifton Springs Hospital laid off 58-full time employees. The reason is to get ready for the Affordable Care Act that will unfold over the next four years.
Lewis Zulick, Interim CEO of Clifton Springs Hospital, said, “That was something that we realized, especially over the last 6 months or so, that we had to do something to really match up our revenue to our expenses. That really had to do with the kind of volume we were experiencing at the hospital.”
In other words, from reading the article, it’s due to Obamacare’s refusal to allow insurance companies to pay for certain procedures, pushing that cost off on the consumer. It’s not a decision the doctor and patient make together (“Do I need this?”), but one forced on the consumer by government regulation — and that written by supposed “experts,” bureaucrats who know nothing about individual patients and their needs. The hospital anticipates fewer people opting for such procedures, thus leading them to make the logical business decision to lay people off.
Ergo, Obamacare costs jobs.
One can argue, of course, that some at least of these were unnecessary procedures that drove up insurance costs, and I wouldn’t disagree with you. That’s what’s been called “defensive medicine,” in which doctors will order “just one more test” not so much out of medical need, but to avoid being sued in our litigation-plagued society. Conservative reformers have long complained of needless malpractice suits that drive up costs for everyone.
But the solution is tort reform, dealing with the abuse of the legal systems, not top-down command-and-control rationing and regulation of the insurance and medical industries. (Ironically, uber-progressive California was the first state to introduce major malpractice reform. In 1975, under Jerry Brown!) And certainly government should never come between a doctor and patient in deciding treatment.
A global medical technology company has laid off nearly 100 employees at its offices in Tennessee and Massachusetts and is blaming the layoffs on the medical device tax tied to ObamaCare.
London-based Smith & Nephew said Thursday it laid off fewer than 100 employees between the two offices, which operate as the company’s advanced surgical devices unit, according to The Commercial Appeal.
The company specializes in developing orthopedic reconstruction products, has nearly 11,000 employees and operates in over 90 countries, according to its website.
The Affordable Care Act includes a 2.3 percent tax on medical devices, which is expected to raise nearly $30 billion over the next decade. The tax is applied to gross sales revenues.
A tax is a cost of doing business. When you raise costs, the company has three choices: it can eat the lost profits, harming the owners — perhaps a small businessman and his family, or shareholders, which may include employees and pension funds; it can pass the higher cost on to the consumer, running the risk of pricing themselves out of the market; or, they can cut other costs to balance things out. Materials are one cost, but using cheaper materials is one sure way for a medical company to be sued out of business.
But, guess what? Labor is a cost, too!
And so, thanks to the medical device tax in Obamacare, nearly 100 (more) people have lost their jobs.
Eventually, the problems are going to accumulate and annoy and outright harm enough people that they will demand something be done. Democrats and weak-kneed Republicans will want to just tinker with it, promising “fixes.”
But there is no way fix the problems with Obamacare, because Obamacare is the problem. From its most basic concepts to its details, it is one huge, honking, accelerating disaster. However long it takes, it must be repealed, destroyed root and branch. Do to it what Rome did to Carthage.
Sigh. We had our chance in 2012 to take the monster out before he did too much damage. But, we blew it then, and people are suffering for it.
And so we fight on.
RELATED: Stephen Green on “How to ruin healthcare in just 2000 easy pages!” Meanwhile, the cheapest plan for a family of five under Obamacare will cost up to $20,000 per year, per the IRS. That’s almost half the median family income in the US. What was that about “affordable, again?”
(1) For Orwellian definitions of “good,” that is.
(Crossposted at Public Secrets)