Bloomington Hospital has announced that it will eliminate 50 positions by the end of the year.
A statement, signed by Mark Moore, President & CEO of IU Health Bloomington – the name given to Bloomington Hospital after IU’s takeover – justifies the job cuts in order reduce expenses in order to, quote, prepare for sweeping changes in healthcare.
This announcement comes in the wake of the parent company’s statement in September that it would be cutting 800 jobs across all of its affiliated hospitals. Indiana’s other large hospital group, Saint Vincent’s, announced last June that it had laid off 865 employees.
Accompanying IU health’s September statement on the planned job cuts was a claim that its income for the first six months of 2013 was up 20 percent.
However, IU Health claimed the massive jobs cuts were a necessary response to declining reimbursements and admissions.
These kind of job losses in Indiana hospitals has been predicted in consequence of national events, especially the cuts in Medicare payments to health care providers included in the across-the-board federal spending reductions under Congressional sequestration as well as the planned cuts in Medicare reimbursements under the Affordable Care Act, as it comes into operation.
However, even greater declines in public use of healthcare providers in Indiana was predicted after Indiana Governor Mike Pence chose to not participate in the largely federally financed expansion of Medicaid under the ACA, which would have provided health care coverage for several hundred thousand more Hoosiers.