Jackson Health System execs taking pay cuts

About 20 top executives at the large publicly owned provider Jackson Health System in Miami are taking pay cuts of at least 4% as the 1,833-bed hospital system struggles to make up a $133 million budget gap for its fiscal 2010 spending plan.

“Everyone is pitching in,” system President and CEO Eneida Roldan said. The governance team “thought that it would be a good example to say we're stepping up to the plate.” The cuts include salaries, bonuses, executive perks, and a possible five-day furlough, which will total more than $1 million in savings.

Other changes are needed to close the budget gap. Roldan said the system is working to increase profitable services like orthopedic and cardiovascular care, and make changes to costly services like oncology, which is offered through an affiliation with the University of Miami. In addition, the system will be asking its workers' union to help find personnel cost savings.

The cost-cutting plan was approved by the health system's board on Monday, and now must get approval from the Miami-Dade Board of County Commissioners. State law requires the system to have a balanced budget, said Roldan, who was appointed on June 1.

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