Martha Baker, president of the system's largest union, SEIU Local 1991, immediately blasted the announcement. “This is what you get when you hire a billionaire banker and then cut him loose to take a chainsaw to healthcare in Miami-Dade County,” she said in a statement. Migoya was hired last April.
Migoya's letter says 920 active staff members' jobs will be cut, along with 195 vacant positions. The letter did not identify the cuts, saying only that the decisions were based on “department-by-department reviews designed to properly align our workforce to our patient volumes and business plan.”
The cuts—which will amount to about 10% of the workforce, including 187 job reductions from 2011—will go into effect by the end of April, Migoya's letter says. The system will hire 350 part-time employees with benefits, whose costs are included in the estimated savings.
Financial disclosures to Jackson Health bondholders (PDF) say the system posted a $93 million net loss in fiscal 2010, following a $245 million loss the year before, the most recent figures available. Those results included an 85% increase in Jackson's provision for bad debts, which was recorded as a $714 million operating expense in fiscal 2010.
The statistics say Jackson Health posted a 65% occupancy rate for its staffed acute-care beds in 2010, down from 73% in the prior year.