Miami-Dade commissioners will vote Tuesday on the reappointment of the seven-member board that runs Jackson Health System: the Financial Recovery Board, charged since 2011 with reversing a financial crisis that threatened to sink the public safety-net hospital system.
The board, which is due to revert to its old name, the Public Health Trust, on June 1, will include six members who formed the financial recovery panel. They have been nominated for reappointment to staggered terms, beginning on June 1. A new member, Irene Lipof, the designated union representative on the panel, is nominated for a one-year term.
The other nominees are: Marcos Lapciuc, the current board chairman, for a one-year term; Miami-Dade Mayor’s designee Mojdeh Khaghan, a Miami attorney, and Rep. Michael Bileca, designated by the Miami-Dade Legislative Delegation chairman for two years each. Stephen Nuell, a Miami attorney, and Darryl Sharpton, an accountant and business consultant were nominated for terms of three years each; and Joe Arriola, a former University of Miami trustee and former Miami city manager, is up for a term of four years.
Jackson administrators have begun to reverse a trend of financial losses, declaring the hospital system solvent in May for the first time in five years. In spring 2011, the hospital system was close to financial collapse, having lost $419 million over three years. More than one year later, Jackson eked out an $8.2 million surplus for its fiscal year that ended Sept. 30, according to an audit released in March.
But many challenges remain, according to administrators, such as increasing patient volume — a goal the hospital system’s board has said it needs to meet in order to ensure long-term sustainability.
There’s also the cloud of an ethics investigation hanging over one member of the board, Nuell, who was accused of abusive behavior toward employees in Jackson’s collections office as he tried to negotiate settlements for unpaid bills owed by his law firm’s clients.
The allegations against the personal injury attorney are detailed in complaints filed with the county’s Commission on Ethics and Public Trust by the director and the associate administrator of Jackson’s business office.
They allege that Nuell repeatedly called the business office between May 2011 — when he was appointed to the board — and October 2012 to resolve matters for private clients despite being told specifically not to do so.
Nuell has declined to comment on the allegations that he exploited his position on the hospital’s board for personal gain.
Copies of the employees’ complaints were made available to the Herald, along with a February 2013 memo from the commission’s deputy general counsel recommending a finding of probable cause that Nuell violated Miami-Dade’s Conflict of Interest and Code of Ethics ordinance.
Though much of the investigation appears to be complete, the five-member ethics commission has yet to issue a finding because Nuell has twice requested an extension on the hearing.
The case is now scheduled to be heard during a closed session at the ethics commission’s meeting on Tuesday — the same day Miami-Dade commissioners are scheduled to meet and approve the new board to oversee Jackson.
Ethics commissioners can dismiss the complaint or issue a finding of probable cause, which could lead to fines, a letter of instruction or a reprimand for Nuell.