The board of Miami-based Jackson Health System has voted to put 30 percent of its monthly payments to the University of Miami medical school into an escrow account, according to a Miami Herald report.
The board expressed frustration with the medical school and stalled negotiations over a new operating agreement. Jackson currently pays $11.9 million per month to UM for physician services, but it will begin to put $3.6 million in escrow until it reaches a contract agreement.
Jackson and UM reached a temporary agreement in May, which included a monthly $3.6 million "transition payment" for physicians to continue practicing at Jackson, according to the report.
Jackson's executives vowed to come up with a permanent operating agreement by the end of July. The temporary agreement has Jackson paying UM $27.6 million more annually than its previous deal, and some board members didn't understand what UM's motivation would be to finalize a new agreement that will likely leave them with less pay. The escrow account is intended to put some incentive on the table to speed negotiations.
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The board expressed frustration with the medical school and stalled negotiations over a new operating agreement. Jackson currently pays $11.9 million per month to UM for physician services, but it will begin to put $3.6 million in escrow until it reaches a contract agreement.
Jackson and UM reached a temporary agreement in May, which included a monthly $3.6 million "transition payment" for physicians to continue practicing at Jackson, according to the report.
Jackson's executives vowed to come up with a permanent operating agreement by the end of July. The temporary agreement has Jackson paying UM $27.6 million more annually than its previous deal, and some board members didn't understand what UM's motivation would be to finalize a new agreement that will likely leave them with less pay. The escrow account is intended to put some incentive on the table to speed negotiations.
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