Organizational Impact and Recommendations

Econ Principles Milestone 3


Precious Teasley


Southern New Hampshire University

IHP-620-Q1591 Economic Principles- healthcare 22TW1

Dr. Scott

October 6,2022








Econ Principles Milestone 3

Organizational Impact and Recommendations


Leonard M. Miller School of Medicine is a constituent college of the University of Miami (Miller). The University of Miami gives top-of-the-line patient care as it houses the region’s best doctors, backed by the extensive research conducted by the School of Medicine. The health care system brings together patient care, innovative research, and education, a critical approach to offering health care (“About Us – Jackson Health Foundation”, 2021). Within the Uhealth system, patients can participate in clinical trials and be the immediate beneficiaries of the innovations implemented fast from the laboratory to the bedside. The health system, consisting of over 1800 providers and specialists, provides state-of-the-art medical treatment for every patient.

The university has an affiliate hospital called Jackson Memorial Hospital, a central research area for medical studies, and a referral center. With over 600 doctors and over 1550 beds, the facility offers clinical practice and admits patients for medical care. The hospital comprises the Jackson Health System, which receives donations from the public and people of goodwill, the government, and other institutions. The facility also offers subsidized and funded medical care to the community that depends on it.

Nonprofit or For-Profit

As a nonprofit academic medical organization, Jackson Health System provides top-notch care to everybody who enters its doors. Jackson Health System ensures that all Miami-Dade County citizens are provided with the same high standard of care regardless of their capacity to pay. The Public Health Trust governs the Jackson Health System, a group of citizen volunteers who act on behalf of the Miami-Dade Board of County Commissioners (“Jackson Memorial Hospital | 24/7 Emergency Services in Miami”, 2021). The philanthropic fundraising arm of South Florida’s most comprehensive healthcare system, Jackson Health System (JHS), is called Jackson Health Foundation. A volunteer board of directors oversees the Foundation, founded in 1991, and is dedicated to charitable endeavors supporting JHS’s medical programs and services. The Foundation contributes to addressing the programmatic needs and gaps in significant capital projects that are not covered by public bond financing. This is done through the kindness of caring donors.

Financials, Market, and Demand

Demand Theory

According to Goldberger (2019), the demand theory stipulates that the quantity of products or services consumers demand directly affects the prices that the products and services will go for in the market. Typically, when the demand for a product is very high, the supply of the product may be low. With this effect, the prices of the products or services will go up. On the other hand, when demand is low, the supply of the products and services may be high, leading to price drops. This is also happening in the medical sector, where disease outbreaks and pandemonium increase the demand for specific types of medicine and medical services. This is expected to earn a health facility more revenue than the rest of the working periods.

While looking at the 2021 audited accounts of the Jackson Health System, compared to the FY 2019 report, during the pandemic outbreak, the hospital system raised more revenues. In FY 2021, the Jackson Health Foundation Inc. reported total revenue of $14,635,358 compared to the audited accounts financial information reported in FY 2019, which showed that the foundation had total revenue of $11,088,938 (Andrea Suozzo, 2022). This is an indication that during the COVID-19 pandemic, the need for medical services increased, making the facility record a very high revenue.

Market Behavior Impact

Regarding market behavior, several circumstances can be considered; political climate, health issues, and the availability of medical services. Whereas market behavior is not a perspective that can be controlled, it can only be tackled after it has happened. Looking at the Jackson Health System, the onset of Covid-19 was a health crisis that had not been thought of before. There was no readiness for the pandemic as it was a natural occurrence. This resulted in a shift with which medical services were offered. With the demands to practice social distancing, movement restrictions, and the need to sanitize frequently, the firm changed how to interact with its patients (“Jackson Health System – 2021 Report To The Community”, 2021). The foundation developed an online portal where doctors could interact with patients virtually. In so doing, the hospital continued to operate and made more revenues, as indicted in its books of accounts.

Economic Legislative Changes

Legislative Changes

Many of the beneficiaries of the Jackson Health System are Medicaid patients; the health system, on the other hand, is the biggest Medicaid provider. The facilities under the health care system need to pay their workers who help serve the community, amounting to $150 million annually. The lawmakers, early in the financial year 2022, cut the additional “critical care” funding to a tune of $71 million for Jackson Health System (Gorchow, 2022). This implies that the facility will be financially constrained to offer medical services to the community. This will likely affect the community’s health services delivery as the facility will be forced to reduce the workforce or the amount of subsidy it gives to the patients on their medical billing. Therefore, the legislative changes are not friendly and will negatively impact the firm.

Policy Changes and Impact

Jackson health system is a non for profit organization intended to make access to affordable health care system easy and manageable. One of the positive impacts that the form has had on the community is to take in as many community members as possible who are interested in offering healthcare services. The cost of operations is rising due to inflation and supply chain issues, making the company work on a very tight budget. The impacts that come with the scrapping of the “critical care” funding will force the firm to look into alternatives that will make it continue to operate. The firm has now embarked on a target to add more paying patients into the system to manage funds deficits. This has a harmful effect somehow to service delivery as the paying patients will be given priority.

Statement Impact

The initiative by Jackson health system to offer non for profit medical services is a bold move that has improved the quality of life for many of the community members. This is in terms of controlling and healing diseases and offering employment opportunities to many students in the health sciences academic programs. One of the key pillars or support systems for the sustenance of this program is the “critical care” funding from the federal government. With the scraping of the funding, the health systems will have rising costs that will negatively impact the profits realized. This will see the company register a rising expenses burden, an “unhealthy” financial report.



Potential Disparities

For sustainable operations, the health system must cut nonpaying patients and add paying patients to the system. This will negatively impact the provision of accessible, affordable medical care as the facilities will shift the interest to the paying customers to raise more funds required to sustain the operations in the facilities. The potential disparities in healthcare service provision preferences will hurt the community at large, especially for the patients who come from vulnerable homes and are not on any health insurance plan or are not in a position to cater to their huge medication bills.

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