A lot of people think hospitals have magical powers, that they are somehow immune to the effects of rising costs and decreasing payments. These people are in for a rude awakening.

ObamaCare will put upward pressure on expenses by herding huge numbers of people through the ER, imposing costly IT mandates and creating a regulatory burden that is very expensive to manage.

Meanwhile, it will cause reimbursements to drop by cutting Medicare and herding millions of patients off of decent commercial insurance onto low-reimbursement government plans.

Many hospitals, particularly in rural areas, will just close. Others will end up selling out to the big for-profits, which will cut staff and services. That’s probably what will happen to these institutions:

Three Catholic hospitals in Pennsylvania are now on the market, and the hospital management is telling the local media that Obamacare is a major reason why the facilities are being unloaded.

These hospitals are not in financial trouble at present, but they know problems are coming because of new costs created by ObamaCare. Here’s how one of the CEOs put it:

When we look out over the landscape of health care over the next five years and the needs of these facilities, the needs of this community, we understand a different level of investment will be needed than what we can do on our own.

You can’t impose huge expenses on an industry and reduce its cash flow without negative effects. The laws of economics cannot be repealed, not even by our alleged leaders in Washington.

[ht ECM]

Trackbacks & Pingbacks 1

  1. From Hospitals Now, What Next? | Kicking Over My Traces on 11 Oct 2010 at 7:09 pm

    [...] Obamacare the Hospital Killer (healthcarebs.com) [...]

Post a Comment

Your email is never published nor shared. Required fields are marked *