Health System in Miami Gave Away $310M in Billings It Never Tried to Collect

As part of a court-ordered arbitration agreement with Miami’s Jackson Health System, a collection agency has taken full ownership of $310 million in billings for uninsured patients that the system had never tried to collect, according to a report by the Miami Herald.

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The agreement resulted from a lawsuit against Jackson by the collection agency, International Portfolio of West Conshohocken, Pa., alleging Jackson had reneged on a 2006 contract under which the agency paid Jackson $5.7 million to collect $1.8 billion in uncollected billings from 1998-2005.

According to the Herald, at one point Jackson asked International Portfolio to stop collections to determine if patients really owed the money and Jackson sent many patients a letter “apologizing for IPI’s collection efforts and informing the patient that he/she had a zero balance.”

The six-hospital, public system lost $11.4 million in Medicaid income from April-July and now faces a deficit of about $90 million this year.

Jackson Health System’s dealings with IPI are an “example of mismanagement on the part of Jackson,” said Sal Barbera, a former hospital administrator who teaches at Florida International University. “I can only hope the taxpayers of Miami-Dade County are not paying for this due to the incompetence of Jackson.”

Read Miami Herald report on Jackson Health System.

Learn more about Jackson Health System.

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