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New Economic Impact Study: Obama Administration Implementation of Bush-Era Medicare Regulation Will Cost U.S. $2.5 Billion in Business Activity, Cut Over 30,000 Jobs
Date:5/12/2009

re> Direct Indirect Induced Total Business Activity Impacts ($)1,050,000,000 457,958,967 1,030,615,974 2,538,574,941 Income Impacts ($)640,413,737 139,085,410 322,634,472 1,102,133,619 Employment Impacts (Jobs) 20,219 2,842 7,262 30,323

Direct Effect represents the impact (e.g., change in employment or revenues) for the expenditures and/or production values specified as direct final demand changes.

Indirect Effect represents the impact (e.g., change in employment) caused by the iteration of industries purchasing from industries resulting from direct final demand changes.

Induced Effect represents the impacts on all local industries caused by the expenditures of new household income generated by the direct and indirect effects of direct final demand changes.

Total Impact is the sum of the direct, indirect, and induced effects.

Labor Income is the sum of employee compensation and proprietary income.

Economic Impact Analysis: Impact Analysis For Planning (IMPLAN) software, Minnesota IMPLAN Group, Inc., 2007 data.

Prepared by Research Department of American Health Care Association using IMPLAN software, 2007 claims data, and components of proposed SNF PPS rule for fiscal year 2010.

"While we are and will remain strong allies in the effort to help create good-paying jobs, stimulate badly-needed economic activity and reform health care, the Administration, Congress, and the public-at-large needs to know implementation of this Bush-era Medicare regulation will, in fact, cut good health jobs, undermine economic stimulus initiatives, and derail badly-needed delivery system reforms already benefiting beneficiaries and taxpayers," said Bruce Yarwood, President and CEO of
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SOURCE American Health Care Association
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