Medicare, Medicaid Revenue Down, Hospital To Eliminate 33 Jobs
NEW LONDON, Conn. (AP) _ Lawrence + Memorial Hospital in southeast Connecticut says it’s eliminating 33 jobs in response to reduced Medicare and Medicaid revenue.
Hospital President and CEO Bruce D. Cummings said federal spending cuts will reduce payments by $1.3 million a year for five years.
In addition, automatic federal budget cuts that took effect earlier this year resulted in a $1 million loss for L+M this year and an expected $1 million loss next year.
The hospital says a 20 percent cut in Medicaid payments by Connecticut translates into $1 million a month this July, August and September and a $4.3 million to $6 million reduction next year.
Cummings said the hospital also expects budget cuts as part of changes in President Barack Obama’s health care law.
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