The 65-year-old partnership between Jackson Health System and the University of Miami will continue for another year after trustees for Miami-Dade's public hospital network on Tuesday approved a $136.6 million annual agreement with UM, whose medical school provides more than 90 percent of the physicians working at Jackson.
The Public Health Trust also extended a separate agreement through May 2023 for one of the most high-profile partnerships between Jackson and UM — the Miami Transplant Institute, among the nation’s busiest organ transplant programs. That deal is capped at $7 million a year.
Both contracts include pay-for-performance incentives and penalties, and they keep UM pediatrics, neurology, transplant and trauma services exclusively at Jackson Health.
And though the total contract amount is about $5 million less than the prior agreement, there’s room for Jackson Health to spend more or less depending on need, such as the number of uninsured patients treated in the coming year, said Don Steigman, chief operating officer for Jackson Health.
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Steigman said the cost estimates are based on formulas that account for how the institutions bill for medical care, the type of health insurance a patient has and the number of days they’re in the hospital.
Among the main points in the contract:
▪ More infectious disease and gastroenterology and endoscopy services will be offered at Jackson Memorial Hospital in Miami, and more urology services at Jackson South Medical Center in South Miami-Dade.
▪ There will be improved pediatric cardiology and gastrointestinal care at Jackson Memorial;
▪ The agreement will mean adding around-the-clock critical care physicians for transplant patients at Jackson Memorial.
“It has never been better than it was this year,” said CEO Carlos Migoya
Jackson and the University of Miami Health System have embarked on more partnerships in the past year, including a network of co-branded urgent care centers and plans for a new hospital in Doral.
In other business, Jackson trustees ratified a two-year employment contract for Migoya, who will earn an annual salary of $730,000 with incentives that could raise his pay to more than $1 million a year.
But although Migoya was the top-paid Miami-Dade employee in 2015, his salary ranks near the bottom of the industry range for the chief executive of a major public hospital and his benefits package is in the 50th percentile, said Julie Staub, chief human resources officer for Jackson Health.
Miami-Dade Commissioner Daniella Levine Cava✔, who serves on the committee that reviewed Migoya’s contract, said the CEO has earned his pay. “He has done a very good job of steering through difficult waters,” she said, “and I’m hopeful he’ll continue.”
Migoya, 67, said he’s happy to continue as CEO even without a pay raise. “With all the cuts and everything we’re doing,” he said, “it would not be appropriate for me to get a raise.”
Trustees also approved a $778,000 payment to settle a lawsuit stemming from a lease agreement for an urgent care center in South Beach. Jackson abandoned plans for 601 5th Street in Miami Beach after realizing that development would be too costly due to local requirements for flood plain management.
Follow Daniel Chang on Twitter @dchangmiami