President Obama's debt reduction proposal, which features $320 billion in healthcare-related savings, will cost hospitals and related businesses 200,000 jobs by 2012, according to a statement released by American Hospital Association President Rich Umbdenstock.
President Obama's proposal would reduce the nation's debt by approximately $3 trillion over the next 10 years. His plan features $248 billion in Medicare savings and $72 billion in Medicaid savings through a wide range of proposals, including reduction of bad debt payments, reduction of critical access hospital payments and increased Medicare fraud, waste and abuse prevention efforts.
In response to President Obama's proposal, Mr. Umbdenstock states the proposal would not only affect hospital-related jobs but also negatively affect healthcare access to seniors; training opportunities for medical students and healthcare access in rural communities.
Wall Street is reflecting the backlash and negative response to President Obama's proposals for healthcare savings. Shares of HCA Holdings, Community Health Systems and Tenet Healthcare fell 6.7 percent, 3.2 percent and 3.8 percent, respectively, according to a Reuters report.
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