New Report Finds That Potential Medicare Cuts Could Lead To More Than 16,000 Jobs Lost In Washington State

SEATTLE, Sept. 14, 2012 /PRNewswire-USNewswire/ -- A new report found up to 16,000 health care jobs could be lost in Washington State by 2021 as a result of the two percent sequester of Medicare spending mandated by the Budget Control Act of 2011.  Nationally, more than 766,000 jobs would be lost according to the report released this week by the American Hospital Association (AHA), the American Medical Association (AMA) and the American Nurses Association (ANA) at a press conference in Washington, DC.

The report, produced by Tripp Umbach, a firm specializing in economic impact studies, measures the anticipated effect of these cuts in Medicare payments on health care providers and other industries. The Tripp Umbach model reflects how reductions in Medicare payment for health care services will lead to direct job losses in the health care sector, reduced purchases by health care entities of goods and services from other businesses which in turn will lay-off workers, and reduced household purchases by workers who lose their jobs.  As the impact of these cuts ripple through the economy, jobs will be lost across many sectors beyond health care.

"Registered nurses witness every day the positive impact on patients' health from services such as prevention, wellness, and coordination of care. These essential services have not only proven to improve patient health outcomes but also lower overall health care costs," said WSNA Executive Director Judith Huntington, MN, RN. "It is not an acceptable solution to reduce the nation's deficit on the backs of patients and those who dedicate their lives to their care."

"Beyond providing health care services, hospitals are often a community's largest employer and are significant contributors to their local economies," said Scott Bond, president of the Washington State Hospital Association. "Cuts to Medicare payments threaten hospitals' ability to provide critical services to their communities and could lead to devastating job losses."

"The combination of a sequestration cut and looming 27% Medicare Sustainable Growth Rate (SGR) payment cut would not only impede improvements to our health care system, it could lead to serious access to care issues for Medicare patients," said Dr. Doug Myers, President of the Washington State Medical Association.  "Medicare's current payments are already below most physicians' practices' cost to provide care – these new cuts will push more practices to further limit access for these patients; not only impacting our state's seniors but also our military personnel under TriCare."

The model estimates that, during the first year of the sequester, more than 10,000 jobs will be lost in Washington State. The report found that the job losses will affect many economic sectors beyond health care.

The health care sector has long been an economic mainstay providing stability and growth even during times of recession.  The Bureau of Labor Statistics data shows that health care created 169,800 jobs in the first half of 2012 and accounted for one out of every five new jobs created this year.

Tripp Umbach designed a customized model based on the national economic impact models developed by MIG IMPLAN, as well as previous impact studies.

The Tripp Umbach report and other resources are available at www.aha.org/jobs.

Washington State Nurses Association is the professional organization representing registered nurses in Washington State.  WSNA effectively advocates for the improvement of health standards and availability of quality health care for all people; promotes high standards for the nursing profession; and advances the professional and economic development of nurses.

The Washington State Hospital Association represents all of Washington's 98 community hospitals.  The association takes a major leadership role in issues that affect delivery, quality, accessibility, affordability, and continuity of health care.  It works to serve its members, increase access to health care, and improve health care quality.

The WSMA represents Washington State's physicians and surgeons, with the mission to make Washington the best place to practice medicine and to receive care.

SOURCE Washington State Hospital Association; Washington State Medical Association; Washington State Nurses Association