Top US hospital laying off staff due to Obamacare
The Cleveland Clinic, which is ranked among the top four U.S. hospitals, is making layoffs and cutting its budget more than $100 million as a direct result of the Affordable Care Act, the Daily Caller has learned.
“The cuts for 2014, about half of those are related to the Affordable Care Act…We anticipate a reduction in workforce,” Cleveland Clinic executive director of communications Eileen Sheil said in an interview with TheDC.
The Cleveland Clinic is reducing its 2014 budget by $330 million.
“We offered early retirement to 3,000 employees,” Sheil said, but noted that the early retirement option recently offered to staff was “voluntary” for eligible employees.
“The $330 million cut is not all layoffs,” Sheil said, noting that the Clinic is also cutting operating-room expenses and paying less to vendors.
“We’re taking money out of vendors, renegotiating contracts, looking at where we can reduce duplications, improve supply chain efficiencies…how we can scale back and use less. How we can take costs out of our operating rooms,” Sheil said.
“We were able to take 23 percent out of common operations procedure by doing things more efficiently,” Shiel said.
The Cleveland Clinic is a Top 4 U.S. hospital for 2013-2014, according to U.S. News and World Report rankings. In 2008, Clinic surgeons performed the nation’s first near-total face transplant.
TheDC has extensively reported on Obamacare’s effect on hospitals, including hefty fines and other penalties facing nonprofit hospitals like the one that treated the final Boston Marathon bombing victim.