The nation's nursing homes are facing a $4 billion drop in annual payments from Medicare. The cuts affect reimbursement fees for what's known as "post-acute care" for seniors at skilled nursing facilities. Such services are needed by seniors who have been hospitalized and require rehabilitative services before returning to their own homes. Medicare does not cover long-term nursing home stays.
The extensive wrangling and possible impact of these relatively small cuts provides a preview of the brutal fights that would take place in any efforts to reduce the nation's huge federal deficits. They are projected at more than $1.3 trillion this year and $1.1 trillion for the year beginning this October—several hundred times the size of the nursing home reimbursement cuts.
When if we cut government programs / spending the lost revenue that results for corporations is retrieved from who? As usual, the workers!
"Staffing accounts for more than two-thirds of a typical nursing facility's expenses, so employment cutbacks would be a likely place for expense reductions. Such cutbacks could adversely affect the quality that seniors receive at such homes, Minnix said."
This is the way capitalism is DESIGNED to work! When if any corporation is faced with declining profits they cut back on labor costs. It has ALWAYS worked that way as it is DESIGNED to work that way! And it will most certainly continue to work that way.
While all of the Too Big to Fail's continue to be "propped up" (ie; Banks, insurance companies, auto companies, big pharma, big oil, etc..) ALL of the pain is inflicted on American citizens BY DESIGN.
It is the DESIGN that must change! However that will NEVER happen as the elite of society around the world have ALL of their wealth and power invested in the survival of the status quo.
My daughter is a nurse and works in a nursing home.. As a result of these cuts, expected to cost her company 3 million over the next year in only 2 states, Missouri and Kansas, the response of the company, so far, has been.
* Eliminate all employee bonus'
* No raises will be given for at least the next year.
So when our government touches entitlements, even a little bit, it immediately affects workers. Employees will lose ground financially while inflation increases further with no wage increases at all.
That is if you are fortunate enough just to hold onto your job..
Here's the full story Nursing Homes Squeezed by Medicare Cuts