Because of the economy, many businesses are being downsized.  Although hospitals are integral to the welfare of any city, they are not exempt from being forced to lay people off.  For medical office workers, these layoffs cause worry and stress.  There are a variety of reasons why hospital staff is being downsized, but here are the top four.

1. Medical services have reduced the reimbursements they pay for Medicare and Medicaid patients.  For example, in New Hampshire, hospital officials said the Medicaid reimbursement cuts would cost their health system about $17 million in the first year.
2. Due to the reimbursement cuts, many patients are unable to pay all their bills leaving the hospital with less money.  One hospital in Washington faces a budget shortfall of $10 million behind plan, Medicaid reimbursements that fell $15 million short this year, and reduced patient volumes.
3. Many hospitals, in attempt to reduce costs, have switched from inpatient to outpatient care.  Some are also reducing the number of ambulances that will service that particular hospital and instead, prefer patients to drive themselves or have a friend bring them.
4. The more people the hospital employs, the more it costs to keep them there.  To continue to pay the hospital employees what they deserve, has been difficult for many healthcare facilities during this recession.

What other reasons can you think of? Do these sound like valid reasons?