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Hospitals slash labor costs to make up for lost Medicare revenue
Modern Healthcare

Hospitals spend less on operations—largely by squeezing labor costs—to make up for lost revenue when Medicare cuts hospital prices, according to a study published in the journal Health Services Research.

The study found that hospitals eliminate 1.7 full-time jobs for every $100,000 drop in Medicare revenue. Nurses accounted for one-third of the reduced workforce. The study did not look at any impact on quality of care.

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