Hospitals shed 3,900 jobs during past 12 months in Pennsylvania

Pennsylvania hospitals have eliminated 3,900 jobs during the past year in response to Medicare payment reductions, looming changes from health-care reform and a generally sluggish economy.

The figure, released Wednesday, is based on Pennsylvania Department of Labor and Industry statistics and a survey conducted this month by the Hospital & Healthsystem Association of Pennsylvania, an industry trade group based in Harrisburg.

• 67 percent of the 104 hospitals that responded said they have instituted hiring freezes or plan to. 
• 51 percent of the hospitals said they have, or are considering, canceling or delaying renovation or building projects.
• 49 percent have laid off workers or are considering doing so.
• 41 percent have, or are examining, cutting certain health-care services.

At southeastern Pennsylvania hospitals, the figures for actions taken or being considered were: hiring freezes (67 percent); reductions in health-care services (44 percent); and delays or cancellations in renovations or building projects (39 percent).

Last month, Crozer-Keystone Health System in Delaware County said it was eliminated 250 jobs because of mounting financial losses. Earlier this month, Temple University Health System said it was cutting 75 jobs at Jeanes Hospital as part of a effort to narrow the focus of the Philadelphia medical center.

“Pennsylvania hospitals confront a changing and uncertain health-care environment, mounting federal payment cuts, and an economy that is still struggling,” said Andy Carter, HAP’s president and CEO. “As hospitals work to transform the delivery system, they need stability in federal Medicare and Medicaid payments in order to make needed improvements without jeopardizing Pennsylvanians’ access to health care.”

According to HAP, Pennsylvania hospitals will see their Medicare payments cut by about $800 million during the period from 2013 through the end of 2014.

Carter said the Corbett Administration’s proposed 2014-2015 state budget “takes important steps toward providing hospitals with stability and predictability from a state fiscal perspective,” and he urged state lawmakers to "preserve and protect" hospital payments in the upcoming budget. He also called on the federal government to approve Pennsylvania’s Healthy PA waiver to increase access to health insurance for low-income, uninsured Pennsylvanians.

Source: Philadelphia Business Journal