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New York City's Public Hospital System Layoffs

"NEW YORK--The nation's largest public hospital system plans to slash its work force--including doctors and nurses--by about 10% over two years as government aid drops and the number of uninsured patients jumps.

With its budget deficit set to top $1 billion, New York City's Health and Hospitals Corp. plans to eliminate 2,600 jobs in the fiscal year that begins July 1. That comes on top of 1,300 positions to be eliminated this year."

http://online.wsj.com/article/SB20001424052748703409804575144184025495398.html

Am wondering if this is a mistake with the new health care program coming.

New York City's public hospital system cares for a very large number of uninsured persons as the article states. Indeed it is often they are the only places such persons can go for treatment, and this includes illegal aliens which NYC has many of and are not provided for in Obamacare.

Also as the article states NYC like NYS currenly receives generous Medicare/Medicaid payments under several programs (teaching hospitals, care for the poor, etc), these payments will be changed under Obamacare and thus the shortfall in revenue.

Even with a great increase in insured persons (and not sure that will happen evenly in NYC/NYS), many would rather die than go a "city" hospital. HHC hospitals have to compete, if that is the proper word for patients and go up against the large teaching hospitals and healthcare systems.

Problem is the same for all hospitals in NYC, Medicare/Medicaid payments often do not cover cost of treatments, but at least priviate hospitals/large healthcare systems can draw from pools of insured persons to patch over the difference to some extent.

Am wondering if this is a mistake with the new health care program coming.

No mistake. Obamacare cuts much needed dollars to hospitals, so they will be making cuts in staffing, among other things, in an effort to pay their bills.

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