Cleveland Clinic to cut $330 million from next year's budget, may cut jobs

[OhioChick]

Source: Cleveland.com

September 18, 2013 at 10:25 AM

CLEVELAND, Ohio-- Cleveland Clinic Chief Executive Toby Cosgrove told employees this morning that the health system may have to eliminate jobs to meet a target of cutting $330 million from its 2014 budget.

The Clinic will first offer early voluntary retirement to about 3,000 employees, who will be notified in October. It’s not clear if any further cuts in staff could be avoided if all these employees choose to retire, however.

About 60 percent of the hospital system’s costs are in labor, salaries and benefits, said spokeswoman Eileen Sheil, and “there’s only so much you can do with non-staff cost cutting.

“Healthcare reform has really changed things, and the burden of cost is going to be falling on patients,” she said. “We want to make sure we can keep care affordable.”


Read more: http://www.cleveland.com/healthfit/index.ssf/2013/09/cleveland_clinic_to_cut_330_mi.html#incart_river_default#incart_m-rpt-2

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I thought that with the Affordable Care Act going into effect, there would be a surplus of medical-related job openings?

[dkf]

1. I don't get it either.

[liberal N proud]

2. I wonder if that cuts the hospital they had planned for right up the road from us.

[leftyohiolib]

3. translation: we cant rip people off like we used to so now we're gonna take it out on you

“Healthcare reform has really changed things, and the burden of cost is going to be falling on patients,” she said. “We want to make sure we can keep care affordable.”

[1ProudAtheist]

4. Winner, Winner

Chicken dinner. We have a winner with that one.

[Mojorabbit]

6. It makes no sense!

They should be expecting an influx of patients who are finally going to be diagnosed and treated for issues now that they have insurance.

[cstanleytech]

14. You would think so however it might not be that easy.

Just because they have an influx or might have an influx doesnt mean to much if have to cut their prices to be competitive.

[global1]

5. More Fodder For The Repugs Wanting To Kill ACA......

I would like to know the political persuasion of the CEO of the Cleveland Clinic. This seems to me to timed to be coincidentally happening right when the Repugs are going to shut down the government unless ACA is defunded.

My gut tells me that with 30 million more people having healthcare that hospitals are going to become very busy places. Hospitals are now being penalized for re-admissions and hospital acquired infections. With more people needing services and less employees around to service them - seems to me that this would spell disaster for the Cleveland Clinic. There will be more of a chance for medical errors, hospital acquired infections and less good care will cause the re-admission rate to go up.

I'm thinking that this might just be an idle threat by this CEO meant to put pressure on the public and the Dems to back down on ACA. If not - I think the leadership under this CEO is questionable.

This will be something to keep an eye on over the next month or so - to see how the MSM will play this up to the detriment of PBO. This just doesn't make a lot of sense to me that he needs to cut 3000 jobs.

And how is the burden of costs going to be falling on the patients?

[OnlinePoker]

7. CEO is Delos Cosgrove

According to Open Secrets, he gave $1000 to Mitt Romney in the last election. I didn't look any further than that.

[hoosierlib]

8. This is coordinated effort...

Three hospital systems in Indiana has made the same announcenents recently. Is it coincidence all these announcenents are being now, durong the GOPs big push to defund the law while holding the budget and debt ceiling hostage?Me thinks not. I also think these hospital systems are this as an excuse to purge older, higher paid employees, so that they can lower costs. Think about it, then can then hire a bunch of lower paid workers next year and claim that it was due to all of newly insured patients they need to care for now. Your thoughts?

[ConcernedCanuk]

9. Take a few billion dollars out of the War Chest.

.
.
.

and take care of your citizens. It's a no brainer to me,

but I'm a Canuck - wadda I know . . .

CC

[pediatricmedic]

10. Many hospitals are going to be cutting staff and services, some will even close

In truth, the hospitals are in as much of a bind as individual consumers are with the hospital bills. It costs quite a bit of money to pay the staff, keep supplies stocked, the lights on, equipment running, and provide high quality care. Paying the staff is the biggest part of the costs and the least flexible part.

Not sure why I was trying to explain this, most here just want to call the doctors and nurses rethug scum for not working for free.

[Psephos]

15. good points n/t

[whatdoiknow]

11. maybe not politics

Hospitals are anticipating a shift in insurance. Deductibles and co-pays will be higher as well as "man" hours spent in pre-certing what is deemed "a costly exam" (example MRI). Hospitals are anticipating a loss based on this dynamic.

[gopiscrap]

12. Welcome to DU

[frustrated_lefty]

13. There's an anticipation

that there will be significant change in how healthcare is dispensed. Non-critical medicine is expected to be provided through alternative venues which require fewer employees and less direct interaction between practitioner and patient. Telemedicine is one example suggested at the place of my employment as a means of cost-savings.

[Trillo]

16. If the burden of cost will be falling more on patients,

then given the dire economic straights most folks are in, that's unless you are a CEO or otherwise part of the 1%, then more folks will be saying, Gee, doc, I can't afford your endless tests that lack diagnosis and treatment.

Either you can help me with my pain now, inexpensively, or I have to do without medical care or find other pain-attenuation options.