A two-percent cut in Medicare funding could result in lost healthcare jobs.

The Indiana Hospital Association says the results if a study indicates the state would lose $844 million over a 10-year period with that lost in Medicare funding. 

The study, conducted by Tripp Umach, was commissioned by the American Hospitals Association to determine the impact on hospitals across the nation. IHA president Doug Leonard says the majority of expenses for hospitals are in the form of labor and personnel.

Leonard says their study was commissioned by the American Hospitals Association last year when the idea if sequester first came about.

The study determined that an $800 million dollar loss would result in 16,500 lost health care jobs. He says Medicare funding accounts for about 50-percent of hospital income.

Leonard says the losses would not occur at once because Medicare funding is a on patient-by-patient basis. Leonard says the average hospital overhead is three percent, but a 2-percent loss on 50-percent of all income would result in dramatic losses.