After losing $419 million the past three years, Jackson Health System finished in the black by $1.5 million for its fiscal year that ended Sept. 30, Chief Executive Carlos Migoya announced Tuesday.
Jackson executives said last week they expected to finish in the black for the first time since 2006 but the excat figure had not been determined. The result was caused by another $15.9 million surplus in September, which executives attributed to a year-end “cleanup” of financial matters.
After a $81 million loss in fiscal 2011, Migoya said the turnaround was sparked by management’s strong cost-cutting, which lowered operating expenses by $295 million.
About $164 million of that came from drastic restructuring of the Jackson Memorial Health Plan. Another $97 million was found in cutting labor costs, eliminating about 900 full-time employees and then rehiring more than 300-part-timers, plus reduced overtime and temp agency staffing as well as changes in pension funding. In the process, Jackson’s full-time workforce dropped by 9.5 percent, Migoya said.
Jackson also cut supply costs by $22 million. Outside contractors and service providers were reduced by $32 million.
Fewer supplies and services were needed in many areas because in-patient admissions dropped by 4,600 over the year. Operating room volume was down by 10 percent at Jackson Memorial, the system’s flagship hospital.
“We are addressing this in 2013 through growth initiatives such as enhanced physician recruitment,” Migoya said.