Healthcare

Jackson, UM reach operating agreement

 

pborns@MiamiHerald.com

After months of negotiations, Jackson Health System and the University of Miami reached an operating agreement for 2013-14.

On Thursday, the Public Health Trust, which oversees Jackson, conditionally approved the agreement for $102.5 million, subject to a legal review of its fair market value. It’s the lowest-budgeted agreement in seven years.

Jackson and UM’s Miller School of Medicine have worked together in an arrangement that goes back at least 50 years. In this agreement, a binding letter of intent commits them to multi-year exclusivity provisions for transplant, trauma, pediatrics and obstetrics services.

“We’re the No. 1 hospital because of UM. The agreement ensures these services will continue to be here in those areas that are most important to our market,” said Jeff Crudele, executive vice president and chief strategy officer at Jackson.

But for Jackson, the win in the agreement is the cost of those services, Crudele said. The new operating budget is significantly lower than the last year’s, at $121.1 million, and well below the 2008 high of $138.8 million.

Over 60 percent is allocated to pay for transplant and other key services that UM will exclusively provide, as well as clinical instruction and other educational support for medical residents and fellows.

“We’re getting very good at working together to find the efficiencies,” Crudele said.

Board member Marcos Lapciuc, who cast the only dissenting vote, has long fought for Jackson to outsource some physician services. “While my issues with some of the services are well known, I feel very comfortable with the transplant, trauma and other aspects of the agreement with UM doctors who’ve been very loyal to UM,” he said.

Read more Miami-Dade stories from the Miami Herald

Miami Herald

Join the
Discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Marketplace

Today's Circulars

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category