If You Thought HealthCare Jobs Were Secure, Think Again

As the coronavirus pandemic continues to sweep the nation, those whom once thought their jobs were secure, are losing them in droves. This may be attributable to the fall of health care spending by about 18% during the first three months of 2020 or perhaps because emergency room visits are down and non-urgent surgical procedures have largely been put on hold. About 42,000 health care workers lost their jobs in March and a whooping 1.4 million lost their jobs in April! If this alludes to anything, it is the amount of money we spend in non-urgent surgical procedures. The astronomical cost for such procedures helps drive employment in our nation. After all, the American Hospital Association predicted that the U.S. hospitals and health systems would end up taking a $200 billion hit over a four-month period through June and most of that money – ~$160 billion – is from lost revenue from more lucrative elective procedures.

Even though $10 billion of the $100 billion from the CARES Act has been allocated to rural hospitals and pandemic hot spots, it’s too early to know whether those funds will help hospitals retain workers. However, other hospitals that do not fall into this category must fend for themselves and figure out ways to keep the system afloat, and can you fault them, if they must make decisions to “furlough” their employees? 

The cost to the economy is just starting to be seen. We won’t truly see the effects of the economic harm the quarantine has caused until a few months from now. Over 33 million people have filed for unemployment as of this month, but for how long can they stay unemployed and obtain benefits? Would people go back to work, when businesses start opening up? Due to the CARES Act, many of those unemployed are earning more each week from unemployment than they would from working. So why should they be incentivized to go back? Perhaps, this is the start of an economy Ayn Rand writes about in her book Atlas ShruggedIt couldn’t be. Too farfetched.

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2 Responses

  1. pat says:

    Can anyone cite evidence that these lockdowns have accomplished what was intended, or should be continued?

  2. Benjamin Van Raalte says:

    Of my employees only 2 returned. Three other full timers decided unemployment is a good deal. In addition 3 part time (less than 10 hours a week) and 1 prn (once a month employee) also filed for full time unemployment since no one is checking the claims. I am in a state where the state unemployment is good, and plus the federal they are making more than before. Since many people don’t think of the future, the decision where they make more money, and work less now is the choice they make. Especially when it runs out, we have government groups that will advocate to extend it since they are unemployed, a vicious circle. Of course they will state it was safety, or child care, or a relative they could not expose, to justify their actions, and make their decision match their beliefs. I almost could not open. I had one employee that was working from home, now claim there job is different and thus they were eligible to quit and collect unemployment. Whose job is not different due to COVID. The job was the same, but all their friends were at home collecting a $1000 a week, while she made less and had to work, so she quit.

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