Photo: Miami Dade CollegeFormer banker Carlos Migoya took Jackson from the brink of bankruptcy to an $8-million profit.
Jackson Health Systems is in the Black
When Carlos Migoya was hired as CEO of Jackson Health System in May 2011, the tax-supported hospital system was near bankruptcy. It had lost some $400 million over three years and had just 10 days of cash on hand. Under the former banker’s leadership, Jackson ended its most recent fiscal year in September with an $8-million profit and is on target for a $35-million profit this year.
Florida Trend: What cost-saving measures have been implemented?
Carlos Migoya: A new labor agreement helped us reduce around $80 million. Between a mass reduction and other layoffs, we probably reduced by about 1,500 people out of slightly over 10,000. And we were able to also improve (staff) quality. We also came up with a new procurement partner and dramatically improved our procurement process by another $40 million to $50 million. And we renegotiated our operating agreement with the University of Miami. We went from a $130 million a year operating agreement to a $100 million a year operating agreement.
FT: How has cash flow been improved?
CM: We’ve now tripled the cash flow that we have when people come in — basically collecting whatever co-pays have to be paid and so forth when they walk in the door.
FT: You had no prior health care experience. How did you deal with that?
CM: We did hire a lot of great health care professionals that knew what they were doing. At least two-thirds of the management team for the hospital got completely turned over, and we brought in a new chief operating officer and chief strategy officer, both of whom had private-sector health care experience. (My contribution) was more the foresight of dealing with the politics of a public hospital.
FT: What’s next?
CM: While maintaining our relationship with the University of Miami, we need to make sure we have also other physicians and private physicians so that patients and managed-care companies will find Jackson an attractive location to send in-patients to. And we have to have the culture within our employees that is patient-centric. … We have to find ways to reinvest and modernize and make sure we have up-to-date equipment and technology. At least we know we’re going to have our doors open.