The federal budget sequester and uncertainty about healthcare reform may be curtailing hiring in physician practices and hospitals, a recent survey conducted by outplacement consulting firm Challenger, Gray & Christmas found.
The U.S. economy recorded the fewest number of announced job cuts in a month since 1997, but the healthcare care sector was not as fortunate as much of the rest of the economy, the firm said. Its survey indicated that the sector had announced 6,843 job cuts in July, the most job losses announced in a month since November 2009.
“Cuts in Medicare reimbursements brought about by sequestration and healthcare reform are hurting hospitals’ bottom line,” said John A. Challenger, CEO of Challenger, Gray & Christmas. ”Some states are also cutting Medicaid funding, which adds to the financial challenges. Hospitals are also reporting fewer patients as high-deductible insurance policies discourage would-be patients from seeking health services. As a result of these factors, healthcare providers, which had been one of the country’s best job generators in recent years, are being forced to reduce their headcounts.”
Date: August 27, 2013
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.