Chicago area hospital cuts staff in preparation of "ObamaCare" implementation

[Ralph Wiggum]

This could go in a different forum, but I stuck it here for more exposure.  Please feel free to move it mods.

I believe you have to be a subscriber to view this, but here's the LINK anyway.

NorthShore University HealthSystem is offering voluntary retirement to about 300 employees, a move to trim expenses as the implementation of key parts of the federal health care law looms.  If all eligible employees take the offer, the retirements would reduce the Evanston-based system's 10,000-person workforce by about 3 percent, says a spokesman for NorthShore.

The offer, which was described yesterday in a letter to workers, comes on the heels of a June 17 announcement that NorthShore will freeze its employee pension plan as of Dec. 31 and shift all employees to a defined-contribution savings plan, another cost-cutting maneuver.  “The state of health care finance is changing at an unprecedented pace and NorthShore must adapt and change to meet these fiscal challenges,” Chief Human Resources Officer William Luehrs wrote in the letter. The pension change and workforce reductions are needed “to get ahead of the sizeable upcoming payment reductions associated with the Affordable Care Act before the start of the new fiscal year.”

Amid shrinking payments from government and private payers and rising costs of providing care, hospital margins are shrinking. They already have an idea of how much President Barack Obama's health care law and other changes in Washington will reduce Medicare and Medicaid reimbursements. In Illinois, the hit will be more than $11 billion over the next decade, the Illinois Hospital Association projects.  But it's harder to predict how the two most significant aspects of the overhaul set to take effect Jan. 1—the implementation of state-level benefits exchanges and the expansion of the Medicaid program—will affect hospitals' financial picture. To be sure, broader access to health coverage will increase the number of patients who can afford health care, but it's anyone's guess how much of a bump in volume hospitals will see.

 

[longview]

It's happening in my state, too.  Hiring and wage freezes.  Voluntary/early retirement with no retirement benefits.  Eliminated 401K matching.  Additional and ponderous documentation requirements.  Automatic denials on everyone with a certain third party payer who meets a prescribed cap with no exceptions for acuity or co-morbidities.  The managers I know have taken reduced hours and volunteered to take pay cuts rather than have the lower paid staff have their hours cut.  Plus, the lower paid workers in most healthcare organizations usually provide the most direct care.

[J P Sousa]

  shift all employees to a defined-contribution savings plan 

The federal government went to this in the mid 1980's for new hires.

States and local governments screwed themselves by not doing the same.

Don't know if "NorthShore University HealthSystem" has any connection to government.
.

[obumazombie]

Moochelle got paid hundreds of thousands at Chicago area hospitals. And this is the results she got. Oh, I forgot, with libs it's only intentions that count.

[Ralph Wiggum]

The federal government went to this in the mid 1980's for new hires.

States and local governments screwed themselves by not doing the same.

Don't know if "NorthShore University HealthSystem" has any connection to government.
.

They have government contracts.  I have a "vested" interest in this story...if you get my gist. 

[vesta111]

They have government contracts.  I have a "vested" interest in this story...if you get my gist. 

Interesting, we get no retirement funds from Hubby's company, but before I retired we did have a 401K with match and we did what was most non advised.    When the 401K went up every couple years we took a loan for half , paid off the  car, house and credit cards and paid it back weekly through our pay checks.

 When I was forced to retire due to health problems, I with drew all money and slammed it into the bank for what 1% interest.   Better then leaving it to loose it all due to the economy, one year I lost $8,000 and I was not going to take a chance on that happening again.

We are looking at the future, with home, cars and credit cards paid off we owe no one but town taxes and federal taxes , land rent on Hubby's salary. 

When the SHTF, we can walk away and live on the road with our #SS and the money we have stuffed under the mattress.

Heck of a chance we took but at our age, in late 40's we went for it.   Today 20 years later I realize we made a mistake buying our home and the money pit it has become.

So lucky we had health insurance along the way, I had 2 bad accidents OSHA reportable that were Sue able but I do not sue people, they were accidents, and I wanted my Job.

We don't know what is coming down the road but we do not want to beholding to any one.