The Impact of Healthcare Legislation and Job Cuts on the U.S. Healthcare System

Ben H.

Hatched by Ben H.

Mar 29, 2024

4 min read


The Impact of Healthcare Legislation and Job Cuts on the U.S. Healthcare System


In recent news, the Senate panel has advanced a bill that seeks to limit hospital facility fees, causing backlash from the hospital sector. Simultaneously, CVS Health, a leading pharmacy giant, has announced plans to cut approximately 5,000 jobs nationwide. These developments shed light on the challenges faced by the U.S. healthcare system, particularly in terms of financial sustainability and workforce shortages. This article will explore the implications of the Senate bill, the significance of job cuts in the healthcare industry, and provide actionable advice for addressing these issues.

The Senate Bill and Its Impact on Hospitals:

The Senate bill includes provisions that have drawn criticism from the hospital sector. These provisions restrict facility fees for telehealth and evaluation and management services provided outside hospital walls. Additionally, outpatient providers are required to use separate identifiers to avoid overbilling, and hospitals are prohibited from demanding contracts with health insurance companies that prevent insurers from directing patients to other providers. While the bill aims to address healthcare workforce shortages, the American Hospital Association expressed concerns that these investments come at the expense of hospitals, health systems, and caregivers who are in dire need of support.

Investments in Healthcare Workforce and Primary Care:

Despite the concerns raised by the hospital sector, the Senate bill allocates substantial funding to various areas of the healthcare system. It provides $5.8 billion for community centers, $950 million for the National Health Service Corps, $1.5 billion for the Teaching Health Center Graduate Medical Education program, $1.2 billion for nurse education at community colleges, and $300 million to train primary care doctors. These investments indicate a recognition of the importance of strengthening the healthcare workforce and improving access to primary care. However, it is crucial to strike a balance between investing in the workforce and ensuring the financial stability of hospitals and healthcare providers.

The Financial Impact and Potential Savings:

One of the key arguments made in favor of the Senate bill is the potential for significant cost savings. Senator Marshall stated that the bill has the potential to save American taxpayers millions, if not billions, of dollars. By enabling seniors to receive primary care sooner rather than later, the investment of a $100 visit may prevent a costly $30,000 hospital admission. This highlights the importance of preventive care and early intervention in reducing healthcare expenses. However, it is essential to evaluate the long-term financial implications of the bill and ensure that the savings outweigh the potential strains on hospitals and healthcare providers.

Job Cuts in the Healthcare Industry:

In line with broader economic concerns and recession fears, CVS Health has recently announced plans to cut around 5,000 jobs nationwide. This move reflects the challenging economic climate faced by many U.S. companies. The healthcare industry is not immune to these pressures, and job cuts can have significant implications for both employees and the overall healthcare system. As the demand for healthcare services continues to grow, maintaining a strong and adequately staffed healthcare workforce is crucial. Therefore, it is essential to explore alternative strategies to address financial challenges without resorting to widespread job cuts.

Actionable Advice:

  • 1. Foster Collaboration: To address the financial strains faced by hospitals and healthcare providers, it is crucial to encourage collaboration between different stakeholders. This includes healthcare organizations, insurance companies, and government agencies. By working together, they can develop innovative solutions that improve the financial stability of the healthcare system while ensuring quality care for patients.
  • 2. Embrace Technology: The Senate bill's restrictions on telehealth and evaluation and management services provided outside hospital walls have raised concerns. Embracing technology and telehealth solutions can enhance access to care, reduce costs, and alleviate the burden on hospitals. By leveraging technology effectively, healthcare providers can expand their reach, provide remote care, and optimize resource allocation.
  • 3. Prioritize Workforce Development: While the Senate bill makes significant investments in healthcare workforce development, it is crucial to continuously prioritize and support the growth of the healthcare workforce. This includes investing in education and training programs, incentivizing healthcare professionals to work in underserved areas, and promoting interdisciplinary collaboration. By nurturing a skilled and diverse workforce, the healthcare system can better meet the needs of the population.


The Senate bill's provisions to limit hospital facility fees have sparked debate within the hospital sector, highlighting the need to balance investments in the healthcare workforce with the financial stability of hospitals and healthcare providers. Simultaneously, job cuts in the healthcare industry, as exemplified by CVS Health, underscore the broader economic challenges faced by companies during times of uncertainty. To address these issues, fostering collaboration, embracing technology, and prioritizing workforce development are essential. By implementing these actionable strategies, the U.S. healthcare system can navigate the complexities it faces and strive towards a more sustainable and resilient future.

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