Jax Finance Committee wrestles with UF Health funding woes

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The Jacksonville City Council Finance Committee continued its budget deliberations on Wednesday afternoon, with an eye toward same-day finalization of the budget.

UF Health’s contribution from the city of Jacksonville was another cleanup item on the agenda. $26,275,594 is the proposed amount, unchanged from the previous year.

Councilman Reggie Gaffney wondered what any extra money would go to, if allocated to the safety-net hospital; a priority would be the underfunded city contract, to deal with inmates and such.

The state told the hospital not to come back looking for more support if the city of Jacksonville doesn’t pony up an added contribution.

Sam Mousa came up, representing the city. A “sitdown” is planned between the mayor and other stakeholders to address this “community wide problem.”

“It’s high on the mayor’s agenda,” said Mousa, who plans a “senior mayor’s staff meeting” to discuss the hospital, pension, stormwater, and solid waste.

Other hospitals have a vested interest in UF Health succeeding also, in addition to other community stakeholders.

“If we can get pension fixed,” says Mousa, “we can fix a lot of stuff.”

Mousa suggests that $110M is being spent on pension, and if that funding equation were resolved, that would help.

Mousa also suggested that the University of Florida needs to take a bigger role in funding the hospital, referencing a $70M match from UF on a bond issue that didn’t come through.

“This needs to be a total, holistic fix,” says Mousa, who adds that an extra million or two is not significant.

Mousa did agree to potential “below the line” funding for UF Health pending task force deliberations, as proposed by Councilman John Crescimbeni.

“If there’s enough money to make the difference, put it ‘below the line,'” says Mousa.

“We’re looking for a gameplan,” regarding what’s to be done with additional money to “improve the cash flow” at the hospital to increase the paying customer base.

“I have yet to see a definitive game plan and goal,” adds Mousa. “There needs to be a formulated process.”

“I’m concerned about UF Health,” says Crescimbeni, who advised that it’s a “Chamber priority” as well.

Another concern for Crescimbeni: employee compensation for city employees, which he says takes priority.

Finance Chair Bill Gulliford observed that “they don’t really have money to address capital needs,” an issue that is unaddressed.

“I’m not a big fan of the Legislature after direct experience with them,” Gulliford adds. “And we don’t know that even if the Legislature approves something, the Governor won’t veto it.”

“This is trying to fix a shotgun wound with a band aid,” says Gulliford.

Councilman Matt Schellenberg commented that the state “wants us to figure out a way to make this work,” and the Legislature “will help on the back end.”

A million or two dollars, he asserts, won’t help in that regard.

“It’s really the middle market, and they need to get more commercial business,” Schellenberg adds.

“If UF Health shuts down,” asks Gulliford, “where do all the indigent people go?”

Gulliford urged private hospitals to consider the “financial consequences” of what would happen if UF Health shut down.

Lori Boyer, likewise, urged a more “substantial” solution than a token uptick in funding.

And “don’t forget that our pension contribution goes up substantially down the road,” regarding sustained commitments.

“Obviously we’re not going to want to give UF Health dollars this year that we then take away,” Boyer added.

Story still developing here. Clearly.

A.G. Gancarski

A.G. Gancarski has been the Northeast Florida correspondent for Florida Politics since 2014. His work also can be seen in the Washington Post, the New York Post, the Washington Times, and National Review, among other publications. He can be reached at [email protected] or on Twitter: @AGGancarski



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