Elkhart General Hospital announced Thursday it expects to eliminate 40 positions after it failed to meet budget goals in 2011.

Hospital President Gregory Losasso blamed the cuts on the economy of Elkhart and adds it was difficult to get reimbursed.

"Throughout all of 2011 we faced increasing challenges around reimbursement. The continued high unemployment rate in Elkhart County has a ripple effect on many industries including healthcare," said Losasso in a prepared statement.

Approximately 40 positions are expected to be cut as the hospital adjusts its 2012 budget. The positions will come from eliminating vacant jobs and layoffs. A hospital spokesperson was unsure the exact number of people who will be laid off. Additional savings are also expected as hospital administrators work to find new revenue sources.

"Salary and benefits are the largest expense in a hospital and unfortunately some positions will be eliminated in the revised budget. Additionally, we will not be filling some positions as opportunities arise," said Losasso in the statement.

Losasso said the cuts will not impact nursing staff ratios to patients.