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Jackson Health System outsources a service for $37.5M

Miami Herald, November 29, 2011
Jackson Health System?s board on Monday approved a $37.5 million, three-year contract with Atlanta-based Chamberlin Edmonds & Associates to take over the services that attempt to qualify uninsured patients for Medicaid or disability insurance. The move will save Jackson about $2.5 million, Chief Financial Officer Mark Knight told the board. The outsourcing will eliminate 26 Jackson jobs ? part of the 240 job cuts that Chief Executive Carlos Migoya announced two weeks ago. In a report on Jackson?s finances, Knight said several times that projected savings on labor costs had not yet materialized because collective bargaining continues with unions, one reason Jackson continues to struggle financially. The system lost $9.6 million in October, and Knight projected "a fairly significant loss" in November.