Aurora CEO cites Obamacare as partial cause of job cutbacks

2013-01-26T05:54:00Z 2013-12-17T11:41:40Z Aurora CEO cites Obamacare as partial cause of job cutbacksMICHAEL BURKE mburke@journaltimes.com Journal Times

RACINE COUNTY — Partly in response to the Affordable Care Act, or Obamacare — as well as other forces — Aurora Health Care expects $13 million less in government reimbursements this year and has begun cutting some positions.

Earlier this month Aurora President and CEO Dr. Nick Turkal laid out the financial situation in a 1,020-word letter to all system employees. He warned of position eliminations and discontinuations to come.

Turkal said there are several causes of the projected $13 million or more decline in reimbursements. He cited the economy, cost reductions dictated by the Affordable Care Act and the congressional “fiscal cliff” agreement.

“We will need to take immediate actions in our 2013 budget to compensate for this loss in revenue,” Turkal wrote.

Actions to reduce fixed costs will be taken this quarter, Turkal wrote. He also added that “you will hear of some position eliminations plus discontinuation of some positions in the coming weeks.”

Aurora spokeswoman Myrle Croasdale said Thursday Aurora has had a hiring freeze for most open positions — mostly in administration — in the past quarter. Public affairs, for example, has lost some positions.

The number of jobs lost will be small in relation to Aurora’s approximately 30,000 employees, Croasdale said. “We anticipate that will be a small number and sprinkled throughout the year.”

But she confirmed both occupied and vacant positions will be cut.

“We don’t want people to be afraid, but things are different,” Croasdale said. “Some positions will be eliminated.”

Aurora is also taking smaller steps, she said, such as keeping appropriate inventory levels of supplies, and encouraging employees to make black-and-white photocopies instead of color whenever possible, because the former costs a fraction of a color copy.

Aurora’s situation could become much more dire, Turkal wrote. He said one proposal under consideration but not yet decided is a 27 percent cut in physician payments for Medicare services. That would cost Aurora roughly $78 million a year.

Also, if congressional inaction leads to “sequestration,” that would lead to automatic budget cuts that would cost Aurora another $23 million, Turkal wrote.

In his summary paragraph, he wrote, “I am as frustrated by this as anyone. While most of these changes were brought on by external forces, it remains our responsibility to figure out how to continue to provide the very best care for our patients and to help them live well.”

Copyright 2016 Journal Times. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(49) Comments

  1. LiberalKim
    Report Abuse
    LiberalKim - February 01, 2013 1:19 am
    An American: "Take the profit out of health care and we have a good chance"

    BINGO!!!!!! and he SCORES!!
  2. LiberalKim
    Report Abuse
    LiberalKim - February 01, 2013 1:17 am
    Jrunny...you are trying too hard. In your post: "Scientific evidence published in the Annals of Internal Medicine, a leading scientific journal, suggests that forcing hospitals to spend less on elderly patients will produce deadly results."

    Its not the forcing hospitals to spend less that is the cause, its OVERPRICED health care, that is really the culprit. Health care charges 50% more than its WORTH.
  3. LiberalKim
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    LiberalKim - February 01, 2013 1:13 am
    ggodmuls, with as offensive as you are about God, you should take his name out of your user moniker. Shame shame.
  4. LiberalKim
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    LiberalKim - February 01, 2013 12:59 am
    ordmm,
    doctors make TOO much as it is. The 25% less pay to them is at least CLOSER to what they are really WORTH. I can name at least 5 doctors at Aurora clinic that are useless and need retrained. Substandard care doesn't DESERVE full pay, anyway.
  5. I Come In Peace
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    I Come In Peace - January 30, 2013 3:50 pm
    @ordmm - but I'm sure you were ok with Walker cutting thousands of Public employee jobs right?
  6. I Come In Peace
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    I Come In Peace - January 30, 2013 3:49 pm
    That 13 million less from the government was enough to cover Aurora's CEO, COO, the Senior Vice President, and consultant Donald Nester's pay.
  7. I Come In Peace
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    I Come In Peace - January 30, 2013 3:46 pm
    Exactly!!!!
  8. I Come In Peace
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    I Come In Peace - January 30, 2013 3:46 pm
    Let's see Nick Turkal made $2.6 Million a year as of 2009 and consultant Donald Nester made $8.1 Million. How much you want to bet they aren't taking any pay cuts? On the other hand it's nice to see Health Care costs slow down and more fellow Americans receive health care. Too bad Republicans are oblivious to this. Even though many of them will benefit from the affordable Health Care Act.
  9. An American
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    An American - January 29, 2013 8:55 pm
    Your post are to enliighten -- that's a good one. Whey did you get into comedy?
  10. sweetieliz24
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    sweetieliz24 - January 29, 2013 4:53 pm
    And another thing. Lets have everyone paying for insurance get to have the right to choose. If they have to pay copays or pay whatever they have to pay to see a doctor, why not let people choose whom they wish instead of making a provider area. Limits the opportunities you have to get the care you seek. If you feel a doctor somewhere else would be better for you and they arent in your HMO, how is that in your best interest when you are paying for it. I'd like to see that go away. And I agree that prices are outrageous. I get that they have equipment to pay for. However, I don't think when any doctor enters the room for 1-2 minutes you should be charged over $200. And I think you should have the right to shop around and know how much something will cost before you go and get serviced there. I wish we had a price list and knew because I bet they are getting away with charging certain people more and others less for the same thing.
  11. sweetieliz24
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    sweetieliz24 - January 29, 2013 4:47 pm
    Maybe, but the people are taken care of.
  12. stephen_wood
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    stephen_wood - January 27, 2013 4:46 pm
    Isn't the goal to cut healthcare costs? Why are you all complaining about this. Get a grip on yourselves. I work in a major hospital and over the past couple years the hospital CEO/execs have explained to us in no uncertain terms that we are turning our business model upside down. From fee for service to fee for RESULTS. What citizen/patient in their right mind would argue against this.
  13. Lionhear
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    Lionhear - January 27, 2013 4:27 pm
    And Obama is a smoker!! But he won't ever have to worry about being medically covered under his own Obamacare Act, just like the democrats in Congress who passed this garbage Act.
  14. jrunny
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    jrunny - January 27, 2013 10:42 am
    Then why are you so in educate on the topic. My posts are to enlighten your entitlement life obamy gave you. Good day troll.
  15. Blogometric Pressure
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    Blogometric Pressure - January 27, 2013 10:33 am
    Troll? Hardly. Been on these blogs for years now. You probably should pull away from the computer, come up out of the basement, take the meds and enjoy the sunshine for a bit.
  16. Blogometric Pressure
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    Blogometric Pressure - January 27, 2013 10:31 am
    Of course Aurora exec has huge 'cottage' house/mansion/estate in northern wisconsin. It is how to suck the profits out of the organization.
  17. Blogometric Pressure
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    Blogometric Pressure - January 27, 2013 10:30 am
    If you believe these organizations are reducing staff because of "Obamacare," you are misled. They are reducing staff to ensure that they realize their profits at their maximum levels. In business, this is standard procedure. This is healthcare. When these big hospital corporations reduce staff there are human consequences. Until we remove the profit potential from the healthcare delivery system, this will continue to be the case. Don't blame President Obama. He didn't create the for-profit healthcare delivery system.
  18. jrunny
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    jrunny - January 27, 2013 9:07 am
    yep blogo keep blaming others for obamy mistakes. TROLL
  19. Blindman
    Report Abuse
    Blindman - January 27, 2013 8:26 am
    Most of those countries are bankrupt.
  20. Blindman
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    Blindman - January 27, 2013 8:24 am
    That statement is ridiculous.
  21. Blogometric Pressure
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    Blogometric Pressure - January 27, 2013 5:34 am
    You guys wanted less less government and wanted everyone to forge out on their own. Paul Ryan would have dumped seniors out on the runway.
  22. Blogometric Pressure
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    Blogometric Pressure - January 27, 2013 5:33 am
    Paul Ryan's plan spells disaster for seniors and would have been much much worse. Did you people who are so against the Affordable Health Care ever study his plan? If you did you would be silent.
  23. ordmm
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    ordmm - January 26, 2013 11:22 pm
    An American...From what I hear your signature song should be 99 bottles of beer.
    Stay sober my friend. God is watching.
  24. An American
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    An American - January 26, 2013 11:20 pm
    Take the profit out of health care and we have a good chance. That is kind of like killing the snake that bites you. Non-profit health care works great in other countries, 42 in particular that have better health care result than in the USA.
  25. jrunny
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    jrunny - January 26, 2013 11:13 pm
    Must be shocking seeing your life on a short term plan under obamacare. Good luck hope your family has quality time as the death panel debates pulling the plug
  26. An American
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    An American - January 26, 2013 10:21 pm
    jdummy has all they answers, but he hasn't presented them yet. Gesh!!!!
  27. jrunny
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    jrunny - January 26, 2013 9:00 pm
    seniors are going to be hit particularly hard by these new taxes, and the five worst ways the group identifies are:

    1. Individual Mandate Tax. Many seniors face a coverage gap between retirement and Medicare eligibility. Obamacare raises taxes on these younger seniors by punishing them if they don't purchase "qualifying health insurance." Set to go into effect in 2014, the excise tax penalty for mandate non-compliance will in 2016 rise to 2.5 percent of adjusted gross income for a senior couple (or $1,390 for those making less than $55,600). Why does Obamacare raise taxes on seniors just as they are entering retirement?

    2. "Cadillac Plan" excise tax. Starting in 2018, Obamacare imposes a whopping 40 percent excise tax on high-cost ("Cadillac plan") health insurance plans. This is defined for seniors as a plan whose premiums exceed $29,450 for a family plan, or $11,500 for a single senior. Seniors often face higher costs in health insurance premiums due to chronic health conditions and other risk factors. This tax is almost exclusively a tax which will fall on seniors with the greatest health insurance needs.

    3. Dividends tax hike. Starting in 2013, the top tax rate on dividends is scheduled to rise from 15 percent today to 39.6 percent. In addition, Obamacare imposes a dividend "surtax" of 3.8 percent on families making more than $250,000 per year. That would create a top dividend tax rate of 43.4 percent, nearly triple today's rate. This will fall very hard on seniors. According to the Tax Foundation's analysis of IRS data, 70 percent of households over age 55 receive dividend income. 71 percent of all dividends paid flow to these households. To raise taxes on dividends is to raise taxes on seniors.

    4. Medical device excise tax. Obamacare imposes a new excise tax on medical device manufacturers in 2013. These companies will surely build the cost of this new tax into the price of what they sell. Who buys medical devices? Who buys pacemakers, wheelchairs, and other costly medical devices? Seniors do.

    5. Reduce allowable medical itemized deductions. Under current law, medical itemized deductions can be claimed on tax returns, but they must be reduced by 7.5 percent of adjusted gross income. Obamacare increases this "haircut" to 10 percent of AGI in 2013. This will mean that millions of Americans claiming medical itemized deductions will no longer be able to. The same IRS data as above tells us that 60 percent of all tax returns claiming this deduction are over age 55.
  28. Blindman
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    Blindman - January 26, 2013 8:56 pm
    un american...If you're going to "reform" healthcare,wouldn't be logical to start with the problem???...The hospitals overcharging and insurance co's over charging instead of the "non-problem" citizens that are paying outrageous prices for healthcare???...If the fed gov't is so regulate happy , why not regulate the problem???...Hospitals and insurance co's.
  29. An American
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    An American - January 26, 2013 8:07 pm
    Opps, jdummy, that song was written about a patritot, something you and Benedict Arnold never will be remembered for. But we know you hate your neighbor and that you are willing to sell out heaven.
  30. jrunny
    Report Abuse
    jrunny - January 26, 2013 7:59 pm
    President Obama is wooing seniors with promises to protect Medicare as they've known it. On the defensive because of the $716 billion his health care law takes from Medicare, Obama assures seniors he's cutting payments to hospitals and other providers, not their benefits.

    Don't be bamboozled. It's illogical to think that reducing what a hospital is paid to treat seniors won't harm their care. A mountain of scientific evidence proves the cuts will worsen the chance that an elderly patient survives a hospital stay and goes home. It?s reasonable to conclude that tens of thousands of seniors will die needlessly each year.

    Under ObamaaCare, hospitals, hospice care, dialysis centers, and nursing homes will be paid less to care for the same number of seniors than if the health law had not been enacted. Payments to doctors will also be cut.

    Scientific evidence published in the Annals of Internal Medicine, a leading scientific journal, suggests that forcing hospitals to spend less on elderly patients will produce deadly results.

    Exhaustive data on over two million elderly patients treated at 208 California hospitals from 1999 to 2008 show that elderly patients treated in low spending hospitals (bottom quintile) get less care and have a worse chance of surviving and leaving the hospital than elderly patients with the same diagnosis treated at higher spending hospitals. The research, sponsored by the National Institute on Aging and RAND and published in 2011 found that heart attack patients were 19% more likely to die at low spending hospitals.

    Over a four year period, 13,613 seniors with pneumonia, stroke, heart attacks and other common conditions who died at low spending hospitals would have recovered and gone home had they been treated at a higher spending institution.(Annals of Internal Medicine, February 1, 2011) That?s the death toll in one state with about 10% of the Medicare population.

    Ignoring this evidence, the Obama administration is pressuring hospitals in all fifty states to imitate low spending hospitals. In addition to the across the board cuts in future payments to hospitals,very soon, beginning in October, 2012, the Obama administration will reward hospitals that spend the least per senior,and penalize those that spend more. For several years, the Centers for Medicare and Medicaid have measured hospital quality, including infection rates. But Section 3001 of the Obama health care law adds "Medicare spending per beneficiary" as a measure for the first time. Hospital administrators express alarm that the measure includes not only what is spent on an elderly patient in the hospital but also for thirty days after discharge, when the patient visits a doctor or gets physical therapy for example.

    Slashing what hospitals are paid does not eliminate ?fraud, waste, and abuse,?contrary to what the law?s defenders claim. The cuts compel hospitals to operate in an environment of medical scarcity, with fewer nurses and less diagnostic equipment.

    When Medicare cut payment rates to hospitals in 1997, the cuts eventually led to more deaths from heart attacks. Seniorstreated at the hospitals incurring the largest cuts had a 6-8% worse mortality rate from heart attacksthan seniors treated at other hospitals. The reason, researchers concluded, is that hospitals coped with the cuts by reducing nursing care. (National Bureau of Economic Research, March 2011.)

    Though this research did not measure harm to younger patients, it is obvious that patients of every age suffer when nurses are spread thinner. Press the call button, and you will wait longer for help.

    Medicare is the single largest source of revenue for hospitals. Richard Foster, Chief Actuary of Medicare and Medicaid Services, testified to Congress that the ObamaCare cuts will eventually force 40% of hospitals to operate at a loss, affecting the standard of care. Foster also cautioned that 15% of hospitals may stop accepting Medicare.

    There are safer ways to control Medicare costs, including inching up the eligibility age, asking seniors to pay an affordable share of their bills, preventing hospital infections, and empowering patients to be cost-conscious consumers. Of course, politicians will try to claim that the easy answer -- slashing payments to hospitals -- won?t hurt patients, but the evidence shows that?s untrue.
  31. An American
    Report Abuse
    An American - January 26, 2013 7:55 pm
    Yes, there is another song that reminds what a traitor you are. I doubt that you woul understand, though. But here it goes, my non-Christian.


    One Tin Soldier (The Legend of Billy Jack)
    By Dennis Lambert & Brian Potter, performed by The Original Caste (1970)

    This song was performed by Jinx Dawson and Coven in the movie "Billy Jack" (1971)
    Listen, children, to a story
    That was written long ago,
    'Bout a kingdom on a mountain
    And the valley-folk below.

    On the mountain was a treasure
    Buried deep beneath the stone,
    And the valley-people swore
    They'd have it for their very own.

    Go ahead and hate your neighbor,
    Go ahead and cheat a friend.
    Do it in the name of Heaven,
    You can justify it in the end.
    There won't be any trumpets blowing
    Come the Judgement day,
    On the bloody morning after....
    One tin soldier rides away.

    So the people of the valley
    Sent a message up the hill,
    Asking for the buried treasure,
    Tons of gold for which they'd kill.

    Came an answer from the kingdom,
    "With our brothers we will share
    All the secrets of our mountain,
    All the riches buried there."

    Go ahead and hate your neighbor,
    Go ahead and cheat a friend.
    Do it in the name of Heaven,
    You can justify it in the end.
    There won't be any trumpets blowing
    Come the judgement day,
    On the bloody morning after....
  32. An American
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    An American - January 26, 2013 7:21 pm
    So where are your big ideas to save and improve health care.... I didn't think so -- just b - t ch. It is so much easier. What a nob?
  33. ordmm
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    ordmm - January 26, 2013 6:59 pm
    Zorro.....Sounds good...Unless your one of the Aurora employees losing a job, or suffering a smaller paycheck. So far your your leader obama's plan is off to a bad start.
  34. reality53105
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    reality53105 - January 26, 2013 6:52 pm
    I'll put my week long paycheck on that Nick Turkal will see a raise and bonus this year. Anybody want to cover that. After dealing with Aurora this past year I can now see what EMTs where talking about. There statement when in the Ambulance if you want to live we can take you to St. Cats if you want to die we can take you to Aurora.
  35. exafosi
    Report Abuse
    exafosi - January 26, 2013 6:36 pm
    Did you read the article it says the layoffs are DUE TO THEM GETTING 13 MILLION LESS FROM THE GOVERNMENT,Thought all you conservatives were for less government welfare.
  36. Zorro
    Report Abuse
    Zorro - January 26, 2013 5:41 pm
    The whole point of Obamacare is to reduce health care costs while delivering better, more efficient service to more people. Hospitals will make out OK with millions of additional people covered by health insurance, but they'll also need to reign in their runaway costs.
  37. ggodmuls
    Report Abuse
    ggodmuls - January 26, 2013 5:19 pm
    OH OH! Looks like Obama DISCRIMINATES! against Smokers!

    Millions of smokers could be priced out of health insurance because of tobacco penalties in President Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

    The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.


    http://www.cbsnews.com/8301-204_162-57565787/older-smokers-priced-out-of-obamacare/

    Ruh Roh!

    Clifton Springs Hospital & Clinic announced Friday in a press release that it has reduced its workforce by 58 full-time equivalent positions.

    “Like many hospitals across the State of New York, Clifton Springs Hospital & Clinic is preparing for the Affordable Care Act,” said Dr. Lewis Zulick, Clifton Springs Hospital President and CEO, in the release.


    More bad news here: http://www.dailyjobcuts.com/

    Obama lied and Americans died!!
  38. ggodmuls
    Report Abuse
    ggodmuls - January 26, 2013 5:12 pm
    “We don’t want people to be afraid, but things are different,” Croasdale said. “Some positions will be eliminated.”

    Did it really matter who won the election? Resources are still limited, and we are post peak oil with 7 billion hungry mouths on the Planet. There just won't be the resources to waste on sick care anymore - so I suggest you eat right, exercise, and get fit. Those who can't, or won't, will be receiving short term palliative care. Good Health = PRICELESS.

    Japan, like America, has a demographic problem, and a new sick care plan is being put in place -

    Let elderly people 'hurry up and die', says Japanese minister

    Taro Aso says he would refuse end-of-life care and would 'feel bad' knowing treatment was paid for by government. Taro Aso, the finance minister, said on Monday that the elderly should be allowed to "hurry up and die" to relieve pressure on the state to pay for their medical care.

    "Heaven forbid if you are forced to live on when you want to die. I would wake up feeling increasingly bad knowing that [treatment] was all being paid for by the government," he said during a meeting of the national council on social security reforms. "The problem won't be solved unless you let them hurry up and die."

    He referred to elderly patients who are no longer able to feed themselves as "tube people". The health and welfare ministry, he added, was "well aware that it costs several tens of millions of yen" a month to treat a single patient in the final stages of life.

    Cost aside, caring for the elderly is a major challenge for Japan's stretched social services.
    The government is planning to reduce welfare expenditure in its next budget, due to go into force this April, with details of the cuts expected within days.


    An American - I don't know why a "Christian" like you would need State paid health care when Jesus is your healer. Right? Or don't you really believe. *wink* *wink* If everything is God's will, and he is all knowing, why, God makes you sick so you can hurry up and get to *HEAVEN*. That's where Christians go - right? You're a Christian who's going to heaven? It's God's will if you're sick..... so why you fighting God's will? He's calling you home! Embrace Heaven!

    I dunno, I don't think that you, An American, seem very sure in your faith, Jesus as your healer, or that your final resting place is in heaven. Please, make a decision - god doesn't allow fence sitters - and be sure to choose the right sect, because every wrong sect goes to H-E-double toothpicks. I know that's true because a self-professed Christian told me so.

    Watch James Randi debunk Uri Geller and Christian faith healer Peter Popof.

    http://www.youtube.com/watch?v=M9w7jHYriFo&noredirect=1
  39. jrunny
    Report Abuse
    jrunny - January 26, 2013 4:18 pm
    I thought you had all the ideas Obamacare was the fix of everything or are you just telling lies that'll are healthcare will get worst. just like Obama's tax increase your health care lie will get you

    can't you come up with a new song Todd
  40. An American
    Report Abuse
    An American - January 26, 2013 3:18 pm
    Apparently jdummy has no idea how to improve health care in America. He is all blame and no response to save lives and promote a better health care system. Well, jdummy is just another Monday morning quarter back full of hot air. And we know why, besides his non-Christian beliefs:

    Tea Party or Teapot -- one of the same:
    I'm a little teapot
    Short and stout
    here’s is my handle
    here is my spout
    When I get all steamed up
    Hear me shout
    "Tip me over
    and pour me out!"


  41. jrunny
    Report Abuse
    jrunny - January 26, 2013 2:14 pm
    no staying on topic Todd.again caught with your depends around your ankles tell obamy healthcare lies. and aren't you Catholic to so your church is bankrupt also just losing your mind to dementia is a sad sad thing
  42. ordmm
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    ordmm - January 26, 2013 1:59 pm
    An American.......Oh boy...all that writing and nothing in it that has anything to do with the Aurora article. Please note the little thing about the 27% cut in medicare payments to physicians....How's that Obama care working for you old timer? Oh, I know it's Bush's, and the Koch brothers, and Vos, and Walker's fault.
  43. Blindman
    Report Abuse
    Blindman - January 26, 2013 1:29 pm
    There are 20 new or increased taxes on the American people and small business in the ACA...Obamas message - I'll decide how much you need to live on,and I'll take the rest.
  44. An American
    Report Abuse
    An American - January 26, 2013 1:20 pm
    And why don't you tell us how you and your church would have provided health care to save lives? Opps, your church is going bankrupt paying for pedofile priests, that you support. You and your church have no use for life, just go back an ask Pope Pius why the church favored A D dolf, and why the church did nothing for Native Americans. I know you think you are perfect -- that you can hide behind your church -- but why don't you tell us how you are a so-called Christian? Opps, I almost forgot.

    Tea Party or Teapot -- one of the same:
    I'm a little teapot
    Short and stout
    here’s is my handle
    here is my spout
    When I get all steamed up
    Hear me shout
    "Tip me over
    and pour me out!"
    No wonder Christianity is out the window with you!
  45. Green Racinereal
    Report Abuse
    Green Racinereal - January 26, 2013 11:57 am
    King Obama, Prince John taking Racine WI into ruins
  46. jrunny
    Report Abuse
    jrunny - January 26, 2013 11:40 am
    wanted this healthcare


    sorry for spell check mistake
  47. jrunny
    Report Abuse
    jrunny - January 26, 2013 11:23 am
    Where are the obamy trolls that lord to us and said medical services would not be cut. Darn granny and un American look like lying steaming piles of poop now. But heck they voted and wanted this finish care as the slide towards their date with a obamy death panel.
  48. Blindman
    Report Abuse
    Blindman - January 26, 2013 8:53 am
    The ACA is going to hurt hospitals and their "customers"...The insurance co.'s are still laughing all the way to the bank.
  49. ggodmuls
    Report Abuse
    ggodmuls - January 26, 2013 8:25 am
    IF Obama had a son, he would be exactly like Dishonest John!....

    OH WAIT!!!.....

    Where are the Obamaroids? http://racine.craigslist.org/pol/3572613038.html

    Good Health = PRICELESS.
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