Leonard M. Miller School of Medicine - Financial Troubles

Financial Troubles

In May 2012 the Miller School of Medicine and the UHealth enterprise began a series of expansive lay-offs. University administration stated the main reasons for the lay-offs were the recent economic downturn, the investment in a new teaching hospital during the recession, reduced government funding for biomedical research, and reductions in payouts by the Jackson Health System. The majority of the lay-offs were to be focused in administrative personnel and unfunded research. The school also emphasized the need to move away from a decentralized IT, human resources, and administrative services model for each department/institute to a new centralized model servicing all departments (previously each department had its own personnel in each of these areas). Dean Pascal Goldschmidt and President Donna Shalala stated to the Miami Herald that 800 potential lay-offs would occur (albeit stating this number would likely be smaller), while also stating that many of those laid-off would be rehired through new positions in the centralized model, and the others would be given preferential treatment in any new openings across the university. They also claimed clinical services and patient care were not to be affected by the lay-offs.

As of July 26, the Miller School of Medicine laid off 758 employees, and rehired 194. The expected annual savings for the layoffs is $50 Million.