Health Care Entering a Recession for Inexplicable Reason


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Why could this be happening? The media has no answers. Was there some law passed around this time that might be doing it? OmniCare? OmbatCare? No that’s not it.

I can’t put my finger on it.

Hospitals, a reliable source of employment growth in the recession and its aftermath, are starting to cut thousands of jobs amid falling insurance payments and inpatient visits.

The payroll cuts are surprising because the Affordable Care Act (ACA), whose implementation took a big step forward this month, is eventually expected to provide health coverage to as many as 30 million additional Americans.

In other surprising results, Soviet agriculture produced terrible results even though everyone was forced to work on collective farms.

It’s inexplicable.

You would think that lowering compensation for doctors and hospitals, piling fines on hospitals and setting up exchanges that cut hospitals entirely out of exchange networks, while adding more taxes, would be good for health care.

Maybe Paul Krugman can explain this.

“While the rest of the U.S. economy is stabilizing or improving, health care is entering into a recession,” says John Howser, assistant vice chancellor of Vanderbilt University Medical Center.

Health care providers announced more layoffs than any other industry last month — 8,128 — largely because of reductions by hospitals, according to outplacement firm Challenger Gray and Christmas. So far this year, the health care sector has announced 41,085 layoffs, the third-most behind financial and industrial companies.

But I’m sure this isn’t a sign of problems to come.

The health care law has further reduced the Medicare payments to hospitals that provide lower-quality service or have high readmission rates.

Lower quality service is measured by government metrics. Readmissions lead to fines. Both are inevitable with hospitals that deal with lower income patients who lack the resources, support or interest in caring for themselves.

What ObamaCare really does is kill hospitals that work with poor and minority patients.

As more Baby Boomers turn 65, their services will be reimbursed at Medicare rates that are lower than those of private payers, putting further pressure on hospital revenue.

Or as it’s better known, armageddon. Because it’s not just about the Baby Boomers getting older. It’s about the fact that the younger generation is less employed and less employable, more diverse and less skilled, more prone to accepting handouts and less prone to working for a living.

Europe is going to get hit with this much worse than America. But America will get hit badly enough with it, especially if amnesty passes.

  • JDinSTL

    Eventually Leviathan shows you the stick

  • DogmaelJones1

    Well, for the longest time, well into the 19th century, it was believed
    by doctors that “bleeding” a patient would drain away the “bad humors”
    in his blood and lead to his speedy recovery from whatever ailed him.
    Perhaps Obamacare will act with the same magnificent results. At least,
    that’s what they’re hoping. Good luck with that.

    • truebearing

      Well, we’re bleeding, and it will soon become a flash flood. No more bad humors in America….and no more blood.

  • tagalog

    As James Taranto might say: Fox Butterfield, where are you?

  • objectivefactsmatter

    “The payroll cuts are surprising because the Affordable Care Act (ACA), whose implementation took a big step forward this month, is eventually expected to provide health coverage to as many as 30 million additional Americans.”

    Well then, according to Marx this should cure the problem.

    • truebearing

      If by “cure” you mean eliminate enough citizens to meet the constantly shrinking capacity of the health care industry, I think you’re right. He’s done it before.

  • objectivefactsmatter

    As I said before, the way “forward” for our “transformation” will be only achieved through more cowbell. More socialism is always the answer to failed socialist projects.

  • truebearing

    Doctors quitting medicine, hospitals going out of business, illegal aliens flooding the system….welcome to Obama’s grave new world. Speaking of graves, I hope there won’t be a shortage of those, too.

    • The March Hare

      Well, we could get some of the old USSR Communists to do the job. Nikita Khrushchev did say they would bury us. Sort of like outsourcing jobs overseas.