The Miami economy got a shock today when the county's largest private employer, the University of Miami, filed a notice that it plans to lay off 800 employees from its medical school. The move comes two weeks after university president Donna Shalala said the medical school was planning on cutting back.
In explaining the cutbacks, Shalala noted economic factors such as the recession, a downturn in research funding, and the amount of payments UM received from Jackson Health System.
Jackson is also in the midst of its own economic problems. University of Miami received lump payments from Jackson in exchange for the services of its doctors. Those payments have been dwindling as Jackson has cut back its own services, and the two institutions are working on a new payment system.
The school employs roughly 16,000 people. So today's layoff announcement will affect about 5 percent of the total staff.
Keep Miami New Times Free... Since we started Miami New Times, it has been defined as the free, independent voice of Miami, and we would like to keep it that way. Offering our readers free access to incisive coverage of local news, food and culture. Producing stories on everything from political scandals to the hottest new bands, with gutsy reporting, stylish writing, and staffers who've won everything from the Society of Professional Journalists' Sigma Delta Chi feature-writing award to the Casey Medal for Meritorious Journalism. But with local journalism's existence under siege and advertising revenue setbacks having a larger impact, it is important now more than ever for us to rally support behind funding our local journalism. You can help by participating in our "I Support" membership program, allowing us to keep covering Miami with no paywalls.