Yep, I called it!

 

 

Rather than Deal With Health-Care Reform, Doctors Mull Early Retirement

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Published March 27, 2013

FOXBusiness

American doctors are increasingly concerned about changes already implemented or coming to the health-care system, and some are opting to retire sooner than planned.

Deloitte’s 2013 survey of U.S. physicians found 57% doctors view changes in the industry under the Affordable Care Act as a threat, and six in 10 physicians report it’s likely that many will retire earlier than planned in the next two to three years. This trend could cause more widespread issues in the health-care system that is already coping with doctor and nurse shortages in some areas of the country.

The survey found these numbers to be fairly uniform among all doctors regardless of age, gender or medical specialty.

Fifty-seven percent also say the practice of medicine is in jeopardy, because the “best and brightest” may not consider a career in medicine under new requirements of the reform.

New Jersey-based family physician Marc Mayer, blames the new electronic medical records requirement under the reform as pushing doctors into retirement early. The Patient Protection and Affordable Care Act mandates practices use electronic medical records to reduce paper work, increase communications and cut costs and errors starting Oct. 1 2012.

“Those one and two-person practices with doctors in their late 50s and early 60s may think it’s too daunting of a change and retire early,” he says. “If they don’t do all of those [required] things, they will be looking at a drop in income.”

Jane Orient, executive director of the American Association of Physicians and Surgeons, says the group has been surveying its members on early retirement and other topics for the past decade and has seen similar responses since the implementation of health-care reform. However, she says the economy will play a bigger role on how many doctors exit their practice.

“Some are looking at concierge models, some doctors will go work for hospitals because they just can’t cope with the crushing load of new regulations,” Orient says.

Physicians also report a decrease in take-home pay from 2011 to 2012 in the Deloitte survey, attributing the haircut  to ObamaCare. More than half of respondents saw a 10% or less decrease in their paycheck in the past year. Half forecast that physician incomes will fall dramatically in the next one to three years. Sixty-eight percent of solo physicians report being more likely to have their incomes will fall than those in practices with two to nine physicians (51%) or those with more than 10 physicians (44%).

ObamaCare proposes to save money by “squeezing doctors’ ability to make money,” says Orient.  Right now, about 50% of what doctors make goes to overhead costs, she adds, so a 10% cut in fees at doctors’ offices equates to a 20% cut in profits.

“A lot of our doctors are [concerned about profit loss] and say these threats and cuts are draconian. The requirements are impossible and if you combine that with the fact that a frightening proportion are aged 55 and older, many could retire if they wanted to,” she says.

Mayer’s practice, the Avenel-Iselin Medical Group is a patient-centered medical home, and has been able to participate in both Medicare and private commercial insurance programs. In 2013 and 2014, the law requires states to pay PCPs 100% of Medicare payment rates for services.

“They are paying us for care management fees, and we are now being paid for primary care physician services that we have always done but were never paid for.”

 

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Hostess to close, lay off 18,500 after ‘crippling’ union fight

A small union’s stubbornness in contract talks with Hostess is being blamed for the shutdown of one of America’s snack food icons, the loss of 18,500 jobs just before the holiday season and much-needed tax revenue from hundreds of plants and shops across the country.

The privately-held company had reached a deal with the Teamsters, but a smaller union representing bakery workers refused to agree to concessions, prompting the mass layoffs and closing down of hundreds of plants, bakeries and delivery routes. That prompted harsh words from both the company and from Teamsters officials.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Chief Executive Gregory Rayburn said in a statement. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

The company said it will continue to ship out its well-known products until inventory runs out.

The national strike by members of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union (BCTGM) that began last week decimated the 82-year-old company’s ability to produce and deliver products at roughly 12 of its 33 plants. The company announced earlier in the week that the ax would fall on Friday if the strikers didn’t get back to work, but the union didn’t blink. BCTGM President Frank Hurt said Thursday that the crisis was the “result of nearly a decade of financial and operational mismanagement” and charged management was scapegoating workers to allow the Wall Street investors who own Hostess to sell.

Calls seeking comment from Hurt were not returned early Friday.

Marty Zimmerman, secretary-treasurer for BCTGM Local 85, told Fox40 from a Sacramento picket line early Friday that workers had been at “wits end” with Hostess brass.

“Well, the mindset is we’re standing strong, absolutely,” Zimmerman told the station. “I mean, they’ve taken our pensions away, we’ve had seven CEOs in the last 10 years; this company has been so mismanaged. Really, we’re at our wits end and enough is enough”

The Irving, Texas-based company had already reached an agreement on pay and benefit cuts with its largest union, the International Brotherhood of Teamsters. On Thursday, Teamsters officials blasted the smaller union for not seeking a “solution” in the process or to engage in negotiations.

“The BCTGM chose a different path, as is their prerogative, to not substantively look for a solution or engage in the process,” the statement read. “BCTGM members were told there were better solutions than the final offer, although Judge Drain stated in his decision in bankruptcy court that no such solutions exist. Without complete information, BCTGM members voted by voice votes in union halls. The BCTGM reported that over 90 percent rejected the final offer and three of its units ratified the final offer.”

In a letter to employees posted on the company’s website, Rayburn said all employees would eventually lose their jobs, some sooner than others.

“Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands,” Rayburn’s letter read. “As you know, for many months the Company has been working with our unions, lenders and other stakeholders to reach a consensual resolution to legacy costs and labor contracts. Despite everyone’s considerable efforts to move Hostess out of its restructuring, when we began implementing the Company’s last, best and final offer, the Bakers Union chose to stage a crippling strike.”

Because the company is privately held, its financials were not available. But has struggled for several years, with some blaming America’s increasing appetite for healthier fare. The company sought concessions from employees, but instead got a costly strike that further crippled it, according to officials, who told a federal bankruptcy court it would lose up to $9.5 million from Nov. 9 to Nov. 19 in lost sales and increased costs. The company has cancelled all orders in process and said any baked goods currently in transit would be returned to shippers.

“These losses and other factors, including increased vendor payment terms contraction, have resulted in a significant weakening of the debtors’ cash position and, if continued, would soon result in the debtors completely running out of cash,” the filing read.

Hostess will now sell its popular brands like Ding Dongs, Ho Ho’s and Sno Balls, along with the closure of 565 distribution centers, 570 bakery outlet stores and roughly 5,550 delivery routes.

Lenders have agreed to allow Hostess to continue to access $75 million in financing put in place at the start of the bankruptcy cases to fund the sale and wind-down process, subject to U.S. Bankruptcy Court approval.

BCTGM workers began striking at some Hostess production facilities without notifying Teamsters officials on Nov. 9, the Teamsters said.

“This unannounced action put Teamster members in the difficult position of facing picket lines without knowing their right to honor such a line without being disciplined,” the statement continued.

Read more: http://www.foxnews.com/us/2012/11/16/hostess-brands-to-liquidate-lay-off-18500-after-crippling-union-fight/#ixzz2CQZyup00

Companies that are downsizing or closing.

Thanks to ObamaCare, companies are now faced with the reality of laying off workers and cutting back workers’ hours in the attempt to avoid having to provide their employees with health insurance.  Basic economics tells us companies must either raise prices and/or reduce costs in order to stay competitive and grow. Nothing is ever really ‘free’. Everything has an associated cost. Citizens who voted for Obama in the 2012 election cycle have done themselves more economic damage than they even realize. The ‘working poor’ will now be faced with far fewer job opportunities and limited hours an employer will allow them to work. This means their lifestyle will no longer be based on 40 hours a week, and they can expect to work two or more jobs just to make ends meet.

Here are some companies who have announced layoffs, reduced work hours for employees, or just simply closing their doors due to ObamaCare. Companies sole purpose is to make a profit.

 

LINK

Welch Allyn

Welch Allyn, a company that manufactures medical diagnostic equipment in central New York, announced in September that they would be laying off 275 employees, or roughly 10% of their workforce over the next three years.  One of the major reasons discussed for the layoffs was a proactive response to the Medical Device Tax mandated by the new healthcare law.

Dana Holding Corp.

As recently as a week ago, a global auto parts manufacturing company in Ohio known as Dana Holding Corp., warned their employees of potential layoffs, citing “$24 million over the next six years in additional U.S. health care expenses”.  After laying off several white collar staffers, company insiders have hinted at more to come.  The company will have to cover the additional $24 million cost somehow, which will likely equate to numerous cuts in their current workforce of 25,500 worldwide.

Stryker

One of the biggest medical device manufacturers in the world, Stryker will close their facility in Orchard Park, New York, eliminating 96 jobs in December.  Worse, they plan on countering the medical device tax in Obamacare by slashing 5% of their global workforce – an estimated 1,170 positions.

Boston Scientific

In October of 2009, Boston Scientific CEO Ray Elliott, warned that proposed taxes in the health care reform bill could “lead to significant job losses” for his company.  Nearly two years later, Elliott announced that the company would be cutting anywhere between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas – to China.

Medtronic

In March of 2010, medical device maker Medtronic warned that Obamacare taxes could result in a reduction of precisely 1,000 jobs.  That plan became reality when the company cut 500 positions over the summer, with another 500 set for the end of 2013.

Others

A short listof other companies facing future layoffs at the hands of Obamacare:

  • Smith & Nephew – 770 layoffs
  • Abbott Labs – 700 layoffs
  • Covidien – 595 layoffs
  • Kinetic Concepts – 427 layoffs
  • St. Jude Medical – 300 layoffs
  • Hill Rom – 200 layoffs

Beyond the complete elimination of a significant number of American jobs is another looming problem created by the health care law – a shift from full-time to part-time workers.

Sean Hackbarth of Free Enterprise explains:

A JP Morgan economist “points out that 8.3 million people are working in part-time jobs even though they’d prefer full-time work. Unfortunately, because of President Obama’s health care law, the Patient Protection and Affordable Care Act (PPACA), workers in the hotel, restaurant, and retail industries could be pushed into part-time jobs working less than 30 hours per week.”

“Under the health care law, if a company has more than 50 “full time equivalent” workers, a combination of full and part-time employees, but doesn’t offer “affordable” coverage that meets the government’s minimum value standard, the company will have to pay a penalty. This penalty is determined by the number of full-time employees minus 30 full-time employees. So to reiterate a very important point: part-time workers are not part of the penalty formula. The health care law creates a perverse incentive to hire part-time versus full-time workers.”

Tangible examples of Obamacare causing a reduction in full-time workers:

Darden Restaurants

According to the Orlando Sentinel, Darden Restaurants, a casual dining chain best known for their Red Lobster, Olive Garden and LongHorn Steakhouse restaurants, is “experimenting with limiting the hours of some of its workers to avoid health care requirements under the Affordable Care Act when they take effect in 2014”.

JANCOA Janitorial Services

The CEO of JANCOA, Mary Miller, testified to Congress that Obamacare was a “dream killer”, adding that one option she had to consider “is reducing the majority of my team members to part-time employment in order to reduce the amount that I will be penalized.”

Kroger

The American retailer in Cincinnati, Ohio recently was reported to be planning a significant slashing of their hourly workers.  Doug Ross writes:

Operative Faith (a mid-level manager with the company) reveals that Kroger will soon join the rankof Darden Restaurants and slash the hours of its non-exempt (hourly) workers to avoid millions in Obamacare penalties.

According to the source, Obamacare could result in tens of thousands of Kroger employees being limited to working 28 hours per week.

Summary

This is by no means, meant to be an exhaustive list.  But it is meant to provide examples of real companies, real jobs, and real names, soon to be added to the growing list of employment casualties provided by the inevitable implementation of Obamacare.

Last night, America voted for four more years of President Obama and his destructive economic and health care policies.  By extension, America last night voted their approval of the aforementioned layoffs and overall work reduction.

Now we must accept the inevitable.  Welcome to mourning in America.

 

 

Question…

Now that the 2012 election cycle is over and Obama has won another term in office, what does that mean to you business owners? Do you feel secure enough to hire additional employees, knowing that you may have to carry more of a financial burden in covering their health insurance costs? Do you plan on keeping your employee levels the same? Or, are you considering cutting back worker hours to offset costs and/or avoid having to pay ObamaCare taxes? Just how do you view Obama’s re-election impacting your business?

On the flip side of that same question, how do you employees feel about Obama’s re-election and its impact on you retaining or securing a job in the current job market? Do you view your future in a positive or negative light?