Jackson Health System in precarious financial situation after “critical care” funding eliminated

MIAMI – The Jackson Health System has roughly 1,300 job vacancies. 

President and CEO Carlos Migoya instructed CBS4’s Joe Gorchow they spend round $150 million yearly to fill these spots via temp businesses and extra time.

One technique to ease that financial stress is to recruit folks to work in healthcare.

“Making sure that a lot of new people, who are really interested in healthcare, join healthcare. That does take time,” he mentioned.

Migoya mentioned Jackson Health works with native colleges to deal with labor shortages.

But starting July 1, the Jackson Health System will function in a brand new actuality.  Lawmakers eliminated further “critical care” funding for hospitals.

Migoya mentioned the financial hit couldn’t come at a worse time.

“Being the biggest Medicaid provider in the state, we had the biggest cut, which is $71 million,” he mentioned.

At a Miami-Dade Commission assembly Tuesday, Migoya mentioned Jackson Health is in a precarious financial situation. 

“I believe this year we will still be profitable,” he mentioned, “but we have some stormy times ahead of us.”

Migoya says Jackson’s been worthwhile 10 years in a row.  Moving ahead, balancing the working price range will likely be troublesome, with bills rising. The greatest drivers inflicting financial concern are inflation, provide chain points, prescribed drugs and labor shortages.

“Frankly, I don’t see how that changes in the next two to three years.”

Jackson is a not-for-profit hospital. Migoya says their revenue margins are a lot smaller, round 2%.  And round 13% of sufferers can not afford to pay.  That’s not the priority, however to cope with rising prices, including extra paying sufferers to the system is significant.  

“Today, I feel really good in spite of the fact that healthcare costs being what they are and margins being tight, we are going to be able to continue to do what we need to do.”

Facility growth over the past decade has added extra paying sufferers to the system.  

The fundamental challenges stay coping with inflation prices and provide chain points. But the sufferers is not going to see these points in the type of care. 

“If they need additional meds, they have the meds.  They don’t know it costs an additional 15%.  The cost of care isn’t the same as the level of care.”

Where sufferers would possibly really feel the impression is their wallets down the street.

“We need to reduce the costs the best we can to keep that margin safe.”