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Sequestration Cuts Essay

298 words - 2 pages

What your thoughts are on the sequestration cuts? What will the impact be to hospitals and the local economy? and, How would you mitigate these losses if you ran a hospital?

Due to the United States’ skyrocketing national debt and the lack of an ability for President Obama and lawmakers to come to an agreement on federal spending, sequestration cuts are set to take effect cutting $1.2 trillion over the next 10 years. ...view middle of the document...

However, without an agreement in place, I feel that it is necessary to force sequester cuts before it is too late and the already high national debt spirals out of control. The impact of these cuts on hospitals and the local economy is dependent on which government programs are exempt from these sequestration cuts. Among the items exempt from the sequester cuts are social security, food stamps, and Medicaid programs. Medicare and Research grants provided by the government, on the other hand, will be among the items not exempt from the sequestration cuts. As my background is in health care finance, I know that there is a large presence of Medicare and federally funded grants that NS-LIJ takes advantage of and employs many people based on the grant funding acquired. As these cuts take effect Medicare reimbursement rates are likely to drop and grant funding will be lost and in the process many jobs will be lost as well. I would try to minimize these losses by focusing on building up the government programs that are exempt from the cuts (i.e. Medicaid), and start shifting those in grant positions over to other unfilled hospital jobs.

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