Jackson's board refused to approve a memorandum of understanding with the medical school despite a tight deadline — the school's new fiscal year will begin Friday. The impasse left Jackson CEO Carlos Migoya at a loss, since he had urged the board to accept the memorandum. "I don't know what's going to happen," he said in the report.
The memorandum called for Jackson to pay UM about $115 million, the same as its present contract. Roughly $99.5 million of that would be a base annual payment to the medical school with monthly transition payments of $3.6 million for at least six months.
The health system has been trying to craft a new operating agreement with UM for months. It wants to change its longstanding relationship with UM physicians by leasing them or paying for them and then keeping the revenues the physicians earn through patient visits. Traditionally, Jackson paid UM physicians to work at Jackson Memorial Hospital, and UM gets to keep money the physicians earn from insurers.
Board members took issue with a few elements of the memorandum yesterday, according to the report. UM leaders crafted the agreement with the idea that up to 400 physicians would work at Jackson. When board members asked for the names of the physicians, they were told there was no list available, according to the report.
There was also disagreement over what constituted "centers of excellence" at Jackson, which would be staffed by UM physicians. A board member said several of the slated centers of excellence were money-losers and could dent Jackson's bottom line.
The parties return to negotiations today.
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