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Benefits January 28, 2009
TN Hospital System Stops 403(b) Match
January 28, 2009 (PLANSPONSOR.com) - The West
Tennessee Healthcare system has suspended its 403(b) plan
match.
Reported by Fred Schneyer
A news report in the Jackson (Tennessee) Sun said the health system’s board made the move on an indefinite basis.”The expense changes we are going through are a last resort,” said Richard Parks, president and CEO of West Tennessee Healthcare, according to the news report, “and certainly meant to be temporary.”
Jan Boud, vice president of communications and human resources, said: “It will have to be evaluated on an ongoing basis,” according to the Sun.
It is estimated that the 403(b) match suspension will save the hospital system as much as $400,000 monthly. The news report said the decision was caused by fewer patients coming to the hospital and larger write-offs of unpaid patient bills from a larger number of uninsured patients than in the past.
An upstate New York health care system made a similar move for its 403(b) program in early December (See 403(b)s not Immune to Match Suspension).