Tennova says sequester is to blame for cuts to employee benefits

Tennova says sequester is to blame for cuts to employee benefits


KNOXVILLE (WATE) - Tennova Healthcare is cutting employee benefits and says the budget battle in Washington is to blame.

Tennova says its employees will not be earning vacation time for the next 120 days. They can still use accrued vacation time.

Long term disability, 401K matching and other benefits are also being cut.

Tennova explains that with mandatory federal budget cuts in place, many hospitals are seeing payments go down while costs rise.

In a statement, a Tennova spokesperson said:

"It is critical we respond to the declining reimbursement so we can provide not only the highest quality care, but also the most efficient care for generations to come. As a result we have been forced to tighten some employee benefits. We are proud of the dedication our Associates display in providing high quality care for our patients and deeply regret having to take these steps, but the federal spending cuts leave us no choice. During 2013, a study sponsored by The American Hospital Association predicted that the direct negative employment impact is estimated to be nearly 212,000 jobs and we are working hard to avoid any additional job losses. We are very disappointed in the failure by our nation's elected officials to pass a budget – a failure which resulted in the sequester -- and urge them to take action to repair the damage they have done by passing a responsible budget."

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