Medicare cuts will cost 40,000 jobs

Providers expect reduced Medicare skilled nursing payment rates to eliminate 40,000 jobs, according to results of a new survey.

Enacted Oct. 1, the new final Medicare payment rule will result in 20,000 nursing home layoffs; it also will eliminate 20,000 jobs that would have come with new senior care building and expansion activity that instead will be postponed, respondents said.

In addition, almost half of respondents said they expected to cut staff benefits and three-fourths said salary freezes or cuts will need to be enacted.

Both direct-care staff such as floor nurses as well as employees in corporate or other support posts would be targeted for reductions, respondents said.

Source: Mc Knights