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SEQUESTRATION: It’s here. What impact will it have?

Sequestration, which went into effect Mar. 1, 2013, is expected to cut the federal deficit by $1.2 trillion over the next 10 years.  These automatic cuts impact federal funding of both military and domestic spending.  According to The New York Times, the cuts are widespread, but might not be immediately apparent to the average Joe.  For instance, despite cautions that air travelers might want to factor in extra time at the airport, security lines have not immediately gotten longer due to furloughed TSA officials. 

What about the impact on hospitals?   Here’s an analysis from one state.  The North Carolina Hospital Association has calculated the expected impact of the cuts in Medicare reimbursement, which will decrease by 2 percent beginning April 1.  The decrease in Medicare reimbursement is expected to total $1.3 billion over 10 years.  However, there are other budget cuts that hospitals in North Carolina will face — nearly $8 billion over the next decade.

Sources:  CNN explains: sequestration.  CNN, Feb. 19, 2013.  Click here for full text: http://www.cnn.com/2013/02/06/politics/cnn-explains-sequestration 

Sequestration: when will you feel the pain?  Fox News, Mar. 1, 2013.  Click here for full text:  http://www.foxnews.com/politics/2013/03/01/sequestration-when-will-feel-pain/print 

Shear, M.D.  Across-the-board cuts take effect, but their impact is not immediately felt.  The New York Times, Mar. 2, 2003.  Click here for full text: http://www.nytimes.com/2013/03/03/us/politics/Spending-Cuts-Imposed-US-Starts-to-Trim-Its-Budget.html?_r=0&pagewanted=print

Thomas, J.  Sequestration cuts could cost NC hospitals $1.3B.  Charlotte Business Journal, Mar. 1, 2013.  Click here for full text: http://www.bizjournals.com/charlotte/news/2013/03/01/sequestration-cuts-expected-to-cost-nc.html?s=print  Posted by AHA Resource Center, (312) 422-2003, rc@aha.org

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