Tuesday, October 16, 2012

Impact of Obamacare on Small Business

Jonathan L. Goates
This is one man's story about the impact of Obamacare on his small business:

Dear Family:
On the afternoon prior to the second presidential debate I am sending you this quick note to urge you to vote against the full implementation of Obamacare.  I have studied carefully the impact that the current and future requirements of Obamacare would have upon our independent medical practice of over 60 years.
CONCLUSION: If/when fully implemented this business may no longer be able to survive the additional regulation and mandated decrease in revenue that would result.  That means that I would most likely be unemployed along with 28 people who work at this clinic.
I really don’t care if Obama or Romney is more or less ‘likable’; nor do I care about any other promise or commitment either candidate uses to beguile us.  For me (and to your personal care physician) it all boils down to this:
A.      IF Obama is re-elected and Obamacare is fully enacted – 30 people will inevitably be unemployed, including me; that is my doomsday projection to the owners of this business.  Obamacare means that I will immediately have to figure out how to run this business with 30% less revenue and no off-setting tax relief beginning 1/1/13; less cash flow for this business means fewer employees because I can lay-off more people faster for an immediate financial impact than I can sell equipment assets.  Obama threatens to take away jobs so I won’t vote for him.
B.      IF Romney is elected many of the items in the Act will be repealed – yes, unknown changes would lie ahead.  I would rather accept an unknown future than to be forced into something that I know will bring about the ultimate end of my employment in a small business.  Romney is right when he says that with a brighter economic future for small business that we will invest more, hire more and thrive better than we are today.
1.       We are putting off a decision to purchase a $50,000 scanner until we know whether or not Obamacare will be repealed; if repealed we will buy it on November 10th, if enacted we will not make the purchase.
2.       When I know that the threat of Obamacare is lifted I will immediately hire 2 more physicians and 3-4 more staff.

Please, make your vote count; use this example with your friends and your families.  I hope that this little exercise will help you make up your minds, too.  I’m sorry that I have to be bold here; I believe that my job is on the line.

Jon Goates
Chief Executive,
Davis Family Physicians, PC


  1. I have read, studied, pondered and prayed about Obamacare, and all I have to say is...Evil. Pure and simple.

  2. Will the delayed start date of OBAMACARE affect the US unemployment rate? The U.S. healthcare reform (“Obama Care” or the “Patient Protection and Affordable Care Act”) is intended to pressure large and small employers through force and taxation. Enacted in July 2010, the end result will show North American companies deciding to send customer support, sales, lead generation and appointment setting jobs offshore to stay competitive or risk going out of business. Many business owners will hire a dedicated bilingual employee nearshore who is 100% qualified for their project. Financially speaking, ESL call center employees in Costa Rica are as effective as transitional in-house staff for half of the cost. This proven strategy will give small to medium sized companies the option to scale up their BPO staff without getting caught in the Obamacare challenge in 2015.