The budget, which begins Oct. 1, predicts a loss of about $11 million on $1.9 billion in revenue and depends on the success of about 40 proposals that have not yet been worked out. Because of these uncertainties, “this is a budget just to create a budget,” one board member complained.
A ‘survival budget’
The proposal is “a survival budget, not a sustainability budget,” admitted Interim CFO Ted Shaw, noting a “severe lack of capital” to maintain the public system’s aging infrastructure. Jackson has been beset with declining admissions and an increasing proportion of patients with no or low-paying insurance.
The proposed initiatives amount to $220 million in either cutting costs or increasing revenues and about $90 million of that money would come from improving billing and collections.
One unresolved initiative involved a contract still out for bid to outsource inmate health, saving an estimated $8 million. One board member noted Jackson has been providing jail healthcare to the county for free for many years and should be charging the county for this.
In March, the system announced it would lay off more than a third of its workforce and close two satellite hospitals. This involved scrapping a $102 million addition at one of the hospitals that was 40 percent complete.
Read the Miami Herald report on Jackson Health System.
Read other Becker’s coverage on Jackson Health System:
– Grand Jury Investigation Finds Miami’s Jackson Health System Needs New Governing System
– Florida Lawmakers Ask Jackson Health System to Change Policies Before Committing $50M
– Healthcare System May Scrap $102M Hospital Addition That is 40% Complete
