Health System Monitor

Miami-Dade County commissioners Tuesday agreed to create an oversight board for the financially ailing Jackson Memorial health care system, which was overseen by an appointed board known as the Public Health Trust.

Commissioners approved an ordinance creating the seven-member board, but still must have a second reading for final approval on May 18.

Four commissioners would appoint members of the oversight board, while one each would be appointed by the local legislative delegation and the labor union that represents the health system employees.

The health care system currently is in the process of trying to hire PricewaterhouseCoopers to help rectify billing problems, obtain cost savings for goods, and create growth strategies.

The system is projected to lose up to $230 million this fiscal year because of improperly classified expenses, bad debt not written off over several years, problems converting to a new accounting system, and rising expenses due to the recession.

The Florida Legislature recently adopted a state budget that appropriates an additional $50 million for the public hospital system.

However, getting the state funding is contingent on Miami-Dade County submitting a management review plan, overseeing the system’s financial condition, and implementing a cost-containment plan.

The financial problems caused the Securities and Exchange Commission recently to open an investigation into bonds sold by Miami-Dade on behalf of the hospital system last year.

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Healthcare industry
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