gmmotorama

The U.S. government has reported a final loss of $11.2 billion from the GM bailout, after a nearly $50 billion “investment” in the bankrupt auto maker. This is in spite of GM showing 17 quarters of “profit”. More details here.

“Tenants of the ACA are being felt across the health care industry. With less patients coming to a hospital, all hospitals must re-balance to the new reality of health care.” – Christopher C. Hall, Peninsula Regional Medical Center (Source: Washington Free Beacon)

The changes in health care regulations, primarily directed by the Affordable Care Act, are having many unintended consequences, even before fully implemented. This year has seen a significant increase in layoffs in the health industries, including direct providers of health care. An Investor’s Business Daily review found that more than 9000 jobs have been impacted so far this year.

Here is a partial list of hospitals laying off employees in response to the ACA:

Arnot Health – St. Joseph’s Hospital
Baptist Health of Arkansas
Baptist Memorial
Baystate Franklin Medical Center
Bethesda Health
Cleveland Clinic
Community Health Systems
Cone Health of North Carolina
ConnectCare – St. Louis
Cortland Medical Center
Emory Healthcare
Glen Cove Hospital
Indian Review Medical Center
Jordan Hospital
Lauwrence + Memorial Hospital
Lifespan of Rhode Island
Mission Health Hospital
North Shore University Health System
PeaceHealth
Peninsula Regional Medical Center
St. Vincent’s Medical Center
Vident Pongo Hospital & Medical Group
West Connecticut Health Network

More layoffs by hospitals and other medical services employers are listed here and here.

Nonsequitur: August Layoffs

August 17, 2013

Some big layoffs this month:  Cisco – 4000,  Heinz – 600+, HP Conway Service Center – 500,  JP Morgan Chase – 750+, Micron Technology – 1500, Patch/AOL – 500, Wells Fargo Home Mortgage – 700+

Bankrupt cities. Rampant crime. No jobs. Useless government. People getting angry.

The ironically named Affordable Care Act has many problems, like this and this and this and this, but perhaps the most immediate negative effect has been its effects on hiring.

Small employers don’t want to hire workers if it puts them at 50 or more employees and therefore liable for the ACA’s mandates and/or fines. Small companies with 50 or more employees now will have to incur new costs or layoff workers to keep below the ACA threshold.

For mid-size companies, the problem is a different one. Already accountable for ACA mandates, these employers face increased costs for healthcare coverage unless they cut benefits for all employees or reduce work schedule hours. Many of these employers have begun cutting workers’ hours to 29 hours a week. Why? Because the ACA defines “full-time work” as 30 hours a week or more. This problem is significant enough for two senators, Senator Collins (R Maine) and Senator Donnelly (D Indiana), to offer legislation amending the ACA by defining “full-time work” as 40 hours a week.

The Heritage Foundation has excellent resources discussing the Impact of Obamacare on Business and the Economy . Sadly, the predictions of critics of the ACA are coming true. Whether we fix the ACA with a major overhaul, or repeal it and start over on healthcare reform, we must do something and soon.