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JACKSONVILLE, ILL. -- "We did everything necessary to balance the budget, but first quarter, revenue has gone down."  That's what Passavant Hospital C.E.O. Chester Wynn had to say when we asked if cuts were necessary.

Wynn blames the economy. He believes high unemployment left many people without health insurance. People who don't have insurance postpone medical tests, surgeries and other non-emergency services. To make up for the shortfall, the hospital has offered employees an early retirement option. Workers more than 60 years old, or who have worked at the hospital at least five years have until March 12th to make a decision. Wynn told me the board won't decide how many employees it will need to cut until after the early retirement decisions. Wynn *does* know these changes will not affect healthcare.

"We're not planning on cutting any services. We think the public will see things as they were. They might have to wait a little longer. We're thinking of cutting where activities are down," said Wynn.

Wynn also believes a lack of physicians in the city has affected the hospital's revenue.

"Bringing more physicians in town. We're actually recruiting...we think with more physicians we will see more patients," Wynn said.

More patients could mean more money. Wynn says if more revenue starts coming in, jobs could return to the hospital.

Despite the hospital's budget shortfall, it still plans to expand its emergency department. Wynn told KHQA money for that project already was set aside and is in the budget.

The new facility is expected to open in July. We'll tell you more about this project on KHQA's Weekend News on Sunday night.