Jackson officials have proposed closing their north and south hospitals in a drastic money saving measure announced at a board meeting on Friday.
In addition to the disintegration of the two community hospitals, cost cutting will continue in the form of laying off 4,400 employees.
The announcement came today during a special meeting of the Public Trust during which Jackson CEO Dr. Eneida Roldan rolled out the hospital's recovery plan. The cuts would save $160 million for a hospital system that fears it may be out of money by the beginning of the summer.
"The problems we face today are not sudden. They are not new, nor are they newly large, but they must be addressed," Roldan said in response to the mayor's suggestion. "I want to stress the countless hours that management, the board and our partners and unions are dedicated to save Jackson."
Jackson's financial crisis was announced earlier this year with a projected $229 million deficit for 2010.
The hospital laid off 21 employees last month, but that was just the beginning of the hospital's attempt to stop the bleeding. Union officials had negotiated a no layoff policy for the next 45 days, but those days, like many employees' jos, are numbered.
Two days ago, Mayor Carlos Alvarez called to disassemble the Public Trust and appoint his own members, stating that the hospital didn't need a Band-Aid, it needed a lobotomy, but the idea was shot down.
The proposed closing date for both north and south hospitals is May 6.
The announcement stunned many in the healthcare community.
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"I am surprised they moved in that direction. Those facilities provide a service to the communities they are in," said Linda Quick of the South Florida Hospital Association. "But I understand, desperate times call for decisive action."
