Consultant: Medicaid reforms bode ill for Jackson

A statewide expansion of Medicaid reform, expected to be a prime topic next spring in the Legislature, could have devastating effects on Jackson Health System, its governing body was told Monday.

Consultant Richard Klass said the cash-strapped Jackson could see a worst-case loss of $291 million in revenue and up to 2,180 employees unless it acted aggressively to deal with state reforms, which would push virtually all Medicaid recipients into managed care organizations -- saving money for the state but potentially reducing cash flow to Jackson.

The discussion came during a two-day retreat of the Public Health Trust in which board members examined ways to make Jackson financially sustainable over the next decade.