Bay Medical Center is making some changes due to budget shortfalls.

In September, the hospital is switching its two-thousand employees to new pension plans.

"The hospital has had to change its retirement plan as a cost savings measure," Christa Hild, of Bay Medical said.

One of the changes includes eliminating cost of living increases. The change will adversely affect about 300 employees. Some have already taken the early retirement option.

"We haven't asked anyone to retire or forced anyone to retire. We're simply offering the opportunity to go ahead and retire before this change takes effect and keep that benefit, but only if you're eligible to retire," Hild said. "Thus far only 10 employees have taken advantage of this opportunity."

"Hild says the last thing the hospital wants to do is cut jobs, but it could be a possibility."

"We feel like we're trying to do the best we can to keep people's jobs, keep people's pensions, retirement plans and try to make some small cost cutting measures to make sure we're all still here," Hild said.

Besides the employee's pension plan cuts, the hospital is also considering selling the Bay Behavioral Mental Health and Counseling facility on North Harrison Avenue.

Bay Medical officials say they're losing $100,000 a month on the operation.

"Obviously we can't continue to keep losing a large amount of money. So we're looking into our options, one of which could be selling the facility, but no final decisions have been made yet," Hild said.

Hospital officials say they don't yet have a handle on how many employees will take the early retirement option.

That number will determine how many jobs will be cut, and how many will need to be filled.