Dear gbwillner,
I hear and feel the same pain as you do. In Neurology, CMS also cut 30% rates for EMGs for 2013 (announced in Nov '12) and threaten to do the same for EEGs in 2014. Our professional societies heavily lobbied against these cuts and we were able to show the impact to practices and academic centers. I was on the Hill, talked to CMS people, had email campaigns, and engaged people involved in the process during 2013. The final rules for 2014 were dramatically better and most of the 2013 cuts were reversed. The impact of the ACA to academic centers is significant, and diminishing their ability to use strategic funds to invest in research. As we hear often in administrative meetings, research doesn't pay. The institution ends up paying about 20-40% additional costs to the total award (direct+indirect). Having said that, I am also have to be involved in the development (i.e.: endowments) side of the institutions. See this story:
http://chronicle.com/article/Gifts-to-Colleges-Hit/144707/
Think about the population dynamics in the country, the baby boomers (I am at the tail end) are getting to retirement with the mindset of doing legacy projects. Honestly, the negative spiral is not rational. Many institutions are undergoing restructuring and sustainability studies. The overall research structure at many institutions is clearly changing.
However, a need will remain (fact), and the marketplace will figure out a model to fulfill the need. It is that plain, and it is not delusional... I still believe that the people best positioned to make the most out of this opportunity are those who do a MD/PhD training (opinion).
Fencer