6:20am

Wed April 3, 2013
Business

Federal Cuts Pinch Vanderbilt Hospital

NASHVILLE, Tenn. (AP) — Vanderbilt University Medical Center officials say federal automatic budget cuts require tough economic measures be taken.

The Tennessean (http://tnne.ws/Z6IddpZ ) reported the hospital must make up for a $20 million shortfall by June 30.

Vice Chancellor Dr. Jeff Balser said the federal cuts mean payments are no longer being made to hospitals like Vanderbilt which treat a disproportionate number of indigent patients.

To avoid laying off staff, Vanderbilt has frozen accrual of additional vacation days from April through June. That alone will save almost $12 million. For employees who receive a portion of their pay based on performance, those payments are suspended.

Balser calls the cuts essential and also said Vanderbilt can't implement a pay raise on July 1 as it saves money in the new fiscal year.