Cleveland Clinic announces job cuts to prepare for Obamacare

CLEVELAND Wed Sep 18, 2013 5:23pm EDT

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CLEVELAND (Reuters) - The world-renowned Cleveland Clinic said on Wednesday it would cut jobs and slash five to six percent of its $6 billion annual budget to prepare for President Barack Obama's health reforms.

The clinic, which has treated celebrities and world leaders such as musician Lou Reed, former Italian Prime Minister Silvio Berlusconi and former Olympic gold medal skater Scott Hamilton, did not say how many of its 44,000 employees would be laid off. But a spokeswoman said that $330 million would be cut from its annual budget.

"Some of the initiatives include offering early retirement to 3,000 eligible employees, reducing operational costs, stricter review of filling vacant positions, and lastly workforce reductions," said Eileen Sheil, Executive Director of Corporate Communications for the Cleveland Clinic Foundation.

The clinic is Cleveland's largest employer and the second largest in Ohio after Wal-Mart. It is the largest provider in Ohio of Medicaid health coverage for the poor, the program that will expand to cover uninsured Americans under Obamacare.

"We know we are going to be reimbursed less," under Medicaid, Sheil said.

Cleveland Clinic has almost 100 locations around Ohio employing 3,000 doctors. Its main campus is world renowned for cancer and cardiovascular treatment.

"To prepare for healthcare reform, Cleveland Clinic is transforming the way care is delivered to patients," Sheil said without elaborating.

The clinic's Lerner Research Institute had a total annual research expenditure of $255 million in 2012 and recently announced breakthroughs in creating a breast cancer vaccine, drugs to treat Alzheimer's patients and research into the genetic mutations in prostate cancer.

A 2009 study by the clinic concluded that it accounts for nearly eight percent of the economic output of northeast Ohio.

A key part of Obamacare, officially known as the Affordable Care Act, goes into effect on October 1, when states are supposed to begin offering Americans health insurance options through online exchanges to compare prices.

(Reporting by Kim Palmer; Editing by Greg McCune, Mary Wisniewski and Andre Grenon)

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Comments (6)
Bigforkgirl wrote:
You can thank Gov. Kasich and the R legislators in Ohio for this loss of jobs because they refused to expand Medicaid coverage. They obviously don’t want people to have affordable health insurance nor do they want their hospitals to get paid for serving people without insurance, for which they losing federal subsidies to do so, again because Federal monies are going to those states that ARE expanding Medicaid coverage. Hospitals in those states will be paid directly from Medicaid for all those newly covered citizens who cannot afford health care. Well played, Ohio R’s!

Sep 20, 2013 11:43am EDT  --  Report as abuse
booch221 wrote:
So the Cleveland Clinic is blaming Medicaid?

Do they feel the same about Medicare?

I think this is just an excuse to lay off 3000 people and blame it on Obamacare.

Sep 21, 2013 2:05am EDT  --  Report as abuse
branchltd wrote:
Having been a patient at Cleveland Clinic I can attest to the fact that they are seriously overpriced. Some of the services were very good. Others are average, at best. The bill you’ll get is probably 3-4 times average.

Sep 23, 2013 4:35pm EDT  --  Report as abuse
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