Cutbacks in Medicare Program Affects Chattanooga, Tenn.-Area Hospital.

Byline: Chris Shackleford

Aug. 5--More than 3,000 employees of Memorial Hospital are feeling the pinch from this year's cutbacks in the federal Medicare program.

Medicare changes this year cut the profits for Memorial Hospital and cut out any employee bonus this year for hospital workers.

This is the first time since Memorial created its "Care Share" program in 1995 that Memorial employees are not receiving any bonus.

Hospital officials cited the drops in both Medicare and private insurance reimbursements, along with an increase in the cost of hospital supplies and equipment as the reason the hospital fell short of expectations this year. …