MISHAWAKA — Reductions in state and federal funding are affecting hospitals across the nation and right here in Indiana. Memorial Hospital has been forced to cut staff or shift funds from non-core departments to areas that are experiencing growth.

Today's tough economy and competitive environment force many hospitals to look at different ways to maintain their financial health.

“Memorial and hospitals all over the state of Indiana are dealing with significant changes in funding under the Disproportionate Share program,” said Memorial Hospital Vice President of Marketing Diane Stover.

Memorial will lose an estimated $14 million next year.

“We've been looking at different departments for the last year, and in some areas we do narrow, and in other areas we're growing,” said Stover.

The hospital would not disclose an exact number of staff reductions and departments targeted. But, the issues Memorial face are not exclusive.

“We've really just been hit this year by the economy as many other people have been hit,” said Saint Joseph Regional Medical Center President and CEO Nancy Hellyer in a June 2008 interview.

Hellyer said the state's reimbursement for indigent care was less than expected because of a budget shortfall. Ultimately the hospital cut 60 positions.

“We have to make sure that we're being smart about our finances,”said Hellyer.

"This is an ongoing way of doing business; there's no event," said Stover. "We've been looking at things more seriously for over a year now. There's no end number, there's no end date. It's just us doing business the way most businesses do.

Stover said projects at Memorial that are in the planning stages — including the $80 million surgery center and the stand-alone emergency room — will continue.

Tammy Gustasson, with Elkhart General Hospital's Media Relations Department, said the hospital is not affected by the Disproportionate Share funding reductions.