Medicare Cuts Hurt Jobs
Contrary to popular belief, lately, the health care industry has been taking a beating, and the culprit is the federal deficit. During recently years, the health care industry has shined, but due to medicare and medicaid cuts, job opportunities are starting to slow down in the health sector in the U.S.
For years, numerous health care facilities and companies have relied on government funding; however, recently, congress and the federal government have announced that they would make further cuts due to the federal budget crisis. As a result, construction projects for medical facilities have slowed down, and stock prices for nursing care companies have plummeted. Also, layoffs have already been issued at a handful of medical facilities across the nation.
Billions of dollars in cuts to Medicare and Medicaid
According to analyst, 37 states have cut hospital reimbursement for their financial budget for next year, as well as cutting additional operating costs. In addition, this coming October, nursing home facilities will have to deal with 11% Medicare payment cut. Overall, due to federal deficit and health care reform, the medical industry has to prepare for even deeper cuts in the future.
Many industry analysts, medical administrators, and health care workers are anxious and weary that the hundreds of billions of dollars in cuts to Medicare and Medicaid will significantly slow down job growth within the medical industry. Deep federal budget cuts combined with our economic crisis are having an adverse effect on health care providers. For instance, this past july, job postings for health care providers and medical lab technicians dropped by 61,200 listings. Since Washington is consumed with our escalating budget crisis and growing deficits, more than likely, the health care industry’s job growth will continue to slow down for years to come.