Monday, 14 October 2013 15:11

As ObamaCare Kicks In, Hospitals Forced to Reduce Budgets, Cut Jobs

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Just as the economy appears to be improving slightly, one of the prime drivers — the healthcare industry — is faltering, according to John Howser at Vanderbilt University Medical Center. "While the rest of the U. S. economy is stabilizing or improving, health care is entering into a recession," he observed.

Vanderbilt is in the process of eliminating 1,000 jobs by the end of the year as it trims its operating expenses, thanks to cuts in reimbursements and employee mandates under ObamaCare. Indiana University Health has already laid off 900 workers, while the Cleveland Clinic is offering early retirement to 3,000 of its employees. Said Eileen Shell, executive director at the Cleveland Clinic Foundation:

Some of the [budget cuts] include offering early retirement to 3,000 eligible employees, reducing operational costs, [slowing] the filling [of] vacant positions, and lastly [cutting the] workforce.

Putting the best possible spin on the matter, she added, "To prepare for healthcare reform [ObamaCare], Cleveland Clinic is transforming the way care is delivered to patients."

Once that “transformation” is completed, her patients may discover the realities of government intervention into the healthcare industry: fewer jobs, more delays, higher costs, and fewer choices — just the opposite of what the president promised.

Back in November, Gary Bauer, president of American Valuestold,

The ripple effects, the negatives on our economy, are going to be playing out not just for months but for years.

And I doubt we will ever be able to totally measure the complete cost in manpower and money — in addition to taxes — that Obamacare will end up costing the American people, proving once again that there is no such thing as a free lunch, and there is no such thing as free healthcare.

The cost savings promised that would help provide coverage for 30 million Americans currently without it aren't real, according to Bauer. Instead, they come from cutting the fees paid to doctors and hospitals:

I think that what the public still doesn't realize is that all the savings the president projected are literally savings that come from not paying hospitals, doctors and other care centers for services. If you don’t pay them, you’re not going to get [them].

Job cuts are not restricted to the healthcare industry, either. While Aurora Health Care in Racine, Wisconsin, just joined others in reducing its expenses by cutting jobs, those far removed from Wisconsin are being affected as well. In Florida, the Buca di Beppo chain of Italian restaurants just cut back 400 jobs to part-time as a direct result of ObamaCare. Palm Beach State College cut 100 jobs and placed another 895 positions on notice for further cuts while another half-dozen Florida colleges made similar cuts. SeaWorld and Busch Gardens Tampa reduced the number of hours its part-time employees can work in a week to stay under the 30-hour limit imposed by ObamaCare. And even the city of Boca Raton, a Democratic stronghold, has placed a 25-hour-per-week maximum on its part-time employees.

There have been so many ObamaCare-related job cuts that Investors Business Daily has tasked Jed Graham to keep track of them all. And his list keeps growing. As of October 9, the IBD “ObamaCare scorecard” lists 331 employers who have been forced to cut hours for their employees thanks to the mandate. For example, NEMF Trucking in New Jersey has cut back 400 jobs, while Maricopa Community Colleges in Arizona have reduced the hours for 1,300 of its employees and adjunct faculty. In Indiana, Fort Wayne Community Schools have cut the hours of part-time teaching aides and cafeteria workers from 30 hours a week to 25, and the Alpine School District in Utah has done the same, affecting 800 of its employees.

Virginia has been particularly hard hit: Chesterfield Public Schools have cut the hours of some 2,000 part-timers, along with Christopher Newport University (483 jobs), College of William and Mary (331 jobs), Norfolk State University (504 jobs) and Virginia Commonwealth University (883 jobs). All told, according to Graham, schools and municipalities in Virginia have slashed the hours on more than 7,000 part-timers.

Many forced by ObamaCare to reduce the hours worked by its employees aren't even on Graham’s list, including Louisiana State University, which just announced it would be cutting 1,495 positions along with various programs across its seven hospitals in order to save $150 million.

Bauer’s rule — TANSTAAFL (there ain’t no such thing as a free lunch) — is being validated once again as government promises more than it can provide, and what it does provide is costly, inefficient, and ultimately comes right out of the pockets of the taxpayers who were supposed to benefit from all this generosity. 

ObamaCare is a new government program that proves the old rule.


A graduate of Cornell University and a former investment advisor, Bob is a regular contributor to The New American magazine and blogs frequently at, primarily on economics and politics. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.


  • Comment Link Pete Bennett Tuesday, 15 October 2013 01:40 posted by Pete Bennett

    What happens to the Doctors who wish to operate outside this coming government run system, and there already are some, with more standing on the curb waiting for the opportunity bus to come along. Will they be able to buy/build hospitals themselves, or will the benevolent government prohibit any cooperation with them? Will this same oversight committee over our "wellbeing" permit anyone from even patronizing them?

    What sort of world are we allowing to be built for ourselves? I am thinking of a Soviet type lifestyle on our horizon, run by one time Americans who have, over their lifetime, had the original American Dream gradually stolen by subtle changes in their educations and moral values into that of their chosen elected overseers in the government.

    There will be a time where the only Doctors available will be government schooled ones, whether from this country, or overseas somewhere, both well versed in the practice of governmentally provided Medicine...who gets what, how much, for how long... But, does well versed also mean the ability to provide it? Time will, sadly, tell.

  • Comment Link Heidi Preston Monday, 14 October 2013 22:37 posted by Heidi Preston

    The "international medical system" has been operating in China for awhile now called the Perot system. It was taken over by Dell. This "integrates" all the information into a centralized server that all the hospitals will use. What if you get a little asterisks by your number/name will it block you out of the system all together if you don't comply? It's a reasonable question to ask.
    "H. Ross Perot and eight associates founded Perot Systems in June 1988 after having sold EDS to General Motors. Before its acquisition by Dell Inc. in September 2009, Perot Systems was a Fortune 1000 corporation with more than 23,000 associates and annual revenue (2008) of $2.8 billion. The company maintained offices in more than 25 countries around the world, including the United States, Europe, India, China and Mexico.[3]

    Perot Systems provided information technology services in the industries of health care, government, manufacturing, banking, insurance and others. Perot Systems was especially strong in health care industries with services such as digitizing and automating medical records.[2]

    As a top-five finisher for the third consecutive year, Perot Systems was named to the Fortune magazine “Most Admired Companies in America” list for IT Services in 2008. Company ratings are based on eight criteria, ranging from investment value and quality of products/services to innovation and quality of management.[4] According to a survey Dell Services (the successor of Perot Systems) was ranked nr.1 as IT provider in the US healthcare market[5]"

    Automated medical records...unfortunately there is still human error and how will that play out when they can't access your records or they get deleted by "accident"..oops no healthcare and you can't go anywhere else.
    The future is looking bright for someone....just not the lay person who will pay a fortune for upkeep on this "system".

  • Comment Link Heidi Preston Monday, 14 October 2013 22:21 posted by Heidi Preston

    The way propaganda works is that you create a desire and from that desire you hook the masses into paying money for it. Edward Bernays idea of creating a music room (social status) and then the "need" to buy a piano (not just any piano but grand piano's the bigger the better, is the model for the path to communistic indoctrination for the masses through social medicine. The people's desire for "free" medicine as promised will cost them a lot in the long run. All you have to do is see the projections, the history of socialized medicine (the main stream media will glorify it, but outside of that the statistics, the people,the money trail will tell a different story).
    Once the citizens who can't see past the word "free" and the propaganda will be indebted to the medical/government system and will have to give up lots of "freedoms" to acquire the services. There will be "new" identity tags ..your social security numbers won't suffice because there will have to be a way of "sorting" the different levels of "medical needs". Those with preconditions, those with "good genes", those with inheritable diseases will all come into play. Maybe not this year or next but through ten years of socialized medicine you can bet on it...that is a sure bet for wallstreet. Place your money into the different categories genetics, pills, hospitals, ect.those are the real "free loaders" with the most to gain.
    This isn't Orwellian theory but practical thought processes...carry it through and you will see that what I write is true. NOthing is free, someone pays for it somewhere and that someone is US as always. The short sightedness of the mass appeal of desires for free medicine is an illusion. The idea of social security ...put your money in while you are young and working and the reward of the trust fund will provide in your old's that working out for you...the age limit has been raise, some say abolish it (now that the baby boomers are here), the government officials use it for a private slush fund and keep dipping their nasty little fingers in it then proclaim "bankruptcy". That is the future of socialized medicine ...wake up people!

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