Jackson Health Board Votes to Escrow Payments to University of Miami

The board of Miami-based Jackson Health System has voted to put 30 percent of its monthly payments to the University of Miami medical school into an escrow account, according to a Miami Herald report.

The board expressed frustration with the medical school and stalled negotiations over a new operating agreement. Jackson currently pays $11.9 million per month to UM for physician services, but it will begin to put $3.6 million in escrow until it reaches a contract agreement.

Jackson and UM reached a temporary agreement in May, which included a monthly $3.6 million "transition payment" for physicians to continue practicing at Jackson, according to the report.

Jackson's executives vowed to come up with a permanent operating agreement by the end of July. The temporary agreement has Jackson paying UM $27.6 million more annually than its previous deal, and some board members didn't understand what UM's motivation would be to finalize a new agreement that will likely leave them with less pay. The escrow account is intended to put some incentive on the table to speed negotiations.

More Articles on Jackson Health System:

10 Things to Know About Jackson Memorial Hospital
Jackson Health Board Approves Agreement with University of Miami
Florida's Government-Owned Hospitals Must Determine Worth, If They Should Sell

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