Newspaper article The Florida Times Union
Columbia's Consulting Deal at University Dropped
University Medical Center said yesterday it has stopped paying
Columbia/HCA Healthcare for management consulting after getting
pointers for seven months on how to cut costs at the
By mutual agreement, University stopped logging a
$150,000-a-month fee to Columbia.
"They agreed starting Oct. 1 that the reviews they were
performing for us were not" worth the fee, said University Chief
Executive Officer W.A. McGriff III.
The $150,000-a-month consulting agreement had been an interim
piece of University's deal with Columbia.
It allowed the struggling medical center to move forward with
management changes while awaiting an IRS decision on whether
tax-exempt University could join Columbia's hospital system.
The pending agreement would divide the combined pre-tax
earnings of University, Columbia Memorial Hospital and Columbia
Orange Park Medical Center between Columbia and University on a
78 percent, 22 percent split.
University's top four executives would also be employees of
Columbia, and the company would also receive a management fee.
University gains through being part of a greater hospital
system, McGriff said.
Between last March and September, University received, but has
not yet paid for, advice worth $1.05 million from Columbia. The
hospital gained good value from this advice, McGriff said.
Columbia assisted University in revising its staffing,
improving its productivity, increasing its Medicaid and Medicare
reimbursement, and cutting its contracting and purchasing costs,
McGriff said. …