Category Archives: legislative

Impact of Healthcare Reform Continuing to be Revealed

 There’s more disconcerting news about the historic healthcare reform bill — all being released today.

Along with a study by the Congressional Budget Office that about four million middle-class Americans will pay higher healthcare costs because of the reform and another study from the U.S. Department of Health and Human Services concluding that the legislation will increase healthcare costs — not reduce them — comes a poll of healthcare executives by AMN Healthcare finding that nearly three-quarters of them (72 percent) were either somewhat concerned or very concerned the new law would have a negative impact on their facilities.

In addition, nearly two-thirds (63 percent) say the reform will have a somewhat or very detrimental effect on the quality of care their facilities are able to provide.

Only about one in five of those surveyed (22 percent) were greatly or moderately pleased by the passage of healthcare reform, while about the same number (23 percent) said reform will have a somewhat beneficial or very beneficial effect on the quality of care their facilities are able to provide patients.

But it may impact staffing — which could be both good for the economy in general, while bad for the executives, who already have problems finding some healthcare professionals, especially nurses.

Six in 10 (62 percent) executives said healthcare reform will cause them to add more physicians, 56 percent said reform will cause them to add more nurses, and 56 percent said healthcare reform will drive them to add more allied healthcare professionals.

What Doesn’t Get Reported

It always impresses me how much we journalists are forced to leave in our reporter pads and memory cells when we cover events or conduct interviews.

Take this one session I wrote about from our recent Human Resource Executive Forum® in New York. The session — focusing on re-engaging workforces after the recession to carry them through the recovery and beyond, and moderated by Charlie Tharp — was well attended and well run (thanks in large part to Tharp on both accounts).

When American Express CHRO Kevin Cox started describing the day he got the call from a fellow senior executive about what the federal government actually had in mind in terms of new rules and oversights for bailout-funded financial institutions — including Amex — when it comes to executive compensation, you could have heard a pin drop. There were silently nodding heads all around me. Basically everyone seemed to be hanging on his every word.

I was spellbound, too, by Cox’s full transparency about that moment and the feelings he had. I used his quote about his company’s “near-death experience” but there was so much more he said, about the helplessness he felt when other senior leaders came to him asking if there was any way around this new chokehold from the nation’s capital. He talked about feeling completely powerless to do what he was supposed to do as the head of HR. He described where he was at the time the call came in — on vacation — and what it was like staying on his cell phone for the next few hours, getting patched in here and patched in there.

What really impressed me, too, were the expressions on the faces of fellow HR practitioners in the audience. You could see it, feel it in the air. They not only seemed to share the pain, many — I sensed — had already experienced something similar in waking up to the new reality, the new sheriff in town, the new less-than-supportive “take” on corporate America they could feel emanating from D.C. 

We’ll actually be looking at this new reality through the eyes of some of the nation’s most powerful employment attorneys in our June issue, so stay tuned for that. For now, take it from me, within this country’s HR circles, the impact of the “new deal” in Washington is palpable.