The proposed federal cuts affecting Medicare and Medicaid will not only harm patients and caregivers in New Jersey, but the cuts will also have a major economic impact on healthcare job creators in one of the state's largest industries employing tens of thousands of workers.
That was a message from NJBIA Vice President of Government Affairs Althea D. Ford testified to the Congressional Health Committee on Tuesday. The proposed impact of federal policy changes in Medicaid and Medicare will have on New Jersey residents and the state's economy.
“From hospital systems to nursing homes, home and community-based service providers, we believe that cutting funding for Medicaid and Medicare will have a major impact on job creators in the healthcare sector.
According to the recent Report The New Jersey College Counter Biography Initiative, prepared in partnership with Focus NJ, is one of the state's five largest industries, with healthcare and social services sectors accounting for 8.6% of New Jersey's gross domestic product, Ford said. The number of companies in this sector has increased by 35% since 2020.
“Federal funding cuts will negatively affect healthcare providers' ability to provide the critical services they need to provide their communities,” Ford said. “This disconnect will close the facility and reduce the footprint of healthcare providers within the community.”
Unemployment or unemployment of health workers due to facility closures and reduced services will also harm the state's economy, Ford said. The ripple effects of these closures go beyond the healthcare workers themselves to become other professionals who support the operation of healthcare facilities, such as maintenance workers and nutritionists. Furthermore, rising unemployment and unemployment rates affect state income tax revenues.
The healthcare sector is already suffering from a labor shortage, and Ford noted that cutting federal funding only exacerbates the situation. “Financial constraints require providers to triage their service delivery, which creates significant access concerns for all New Jersey residents, especially the most vulnerable,” Ford told the committee.
To read the whole testimony of Ford, go here.
