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Employees and patients and Jackson North and South react to the plan to save the financially troubled health system
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MIAMI - AUGUST 07: Miami-Dade Mayor Carlos Alvarez speaks during a press conference about the federal government seizing control of the Miami-Dade Housing Agency August 7, 2007 in Miami, Florida. The government accused the county of grossly mismanaging housing programs for some of its neediest families. (Photo by Joe Raedle/Getty Images) *** Local Caption *** Carlos Alvarez
Mayor Carlos Alvarez vowed no county bail outs for financially-dying Jackson Health System during his State of the County address.
That apparently didn't include loaning Miami's largest public hospital group $67 million in taxpayer money that might not even be available.
In a three-page memo to the County Manager and Jackson executives on Wednesday, Alvarez played true to his new Superman role and vowed to get Jackson the $169 million it needs a few months in advance of its usual county payment.
That would be some feat considering the county is pretty strapped itself for cash to provide essential services like parks and public safety. The county had to lay off workers just to balance its budget for this fiscal year.
But while Alvarez plays super hero, a Miami-Dade grand jury will assume the role of auditor.
The state attorney's office said Wednesday a grand jury will look into the financial dealings of Jackson Health, a following up on a request made by the employee's union at Jackson last month.
It looks the mess is likely to get even messier.
The Miami Herald is reporting Alvarez has instructed County Manager George Burgess to find $67 million by the end of the month to keep Jackson afloat. Jackson officials have said if it doesn't have the money by mid-April, the hospitals would be out of cash to operate.
All this talk of insolvency has already begun to have negative effects on Jackson and potentially its patients.
Major medical supply vendors like Johnson and Johnson have taken note of Jackson's low cash flow and want to get their money up front or they won't be sending any more supplies Miami's way.
Last week, Jackson announced it may have to close two community hospitals and lay off 4,500 employees to help bridge a $230 million budget gap. The cuts and closures would shave $165 million off the deficit, officials claim.
Alvarez tried a takeover, but that failed, so now he's going the bailout route.
Jackson CEO Dr. Eneida Roldan hasn't made a formal request for county help, but some things don't need to be said.
But whatever the county does won't solve Jackson's long-term financial problems.
"Quite frankly, unless something is done, this will be a Band-Aid,'' Alvarez told the Herald.