Hospital layoffs to follow Medicaid reimbursement cuts

Hospital jobs are back on the chopping block, thanks in part to state budget cuts to Medicaid reimbursements.

Some hospital workers will get the boot in New Hampshire, which hospital executives deemed necessary to offset the $250 million budget cut that went into effect on July 1, reports NHPR.

So far, Elliot Health System in Manchester will be laying off 182 of its 2,800 employees.

Hospital officials said the Medicaid reimbursement cuts would cost Elliot Health System about $17 million in the first year, reports the Union Leader.

"The action we have been forced to take today is as a direct result of the state's cuts, and we are outraged and sad," said Elliot President and CEO Doug Dean in a statement. "We hold the state and every legislator accountable for what is taking place today. Good people are forever harmed."

The Medicaid cuts also have forced Elliot to close one program and cut benefits.

The layoffs were announced only two days after Elliot and nine other hospitals sued the state of New Hampshire, claiming the budget--and it's Medicaid reimbursement cuts--violate federal rules that require equal access to medical care for Medicaid patients, reports the Union Leader.

As state budgets put hospitals and health systems into a funding crunch, facilities may be forced to follow Eliot's lead and cut jobs and programs to free up much needed funds.

For more:
- read the NHPR article
- read the Union Leader article 1 and article 2