South Florida News

MIAMI (CBS4) ― The day before Jackson President and CEO Eneida Roldan announced plans to lay off nearly 4,500 employees and close Jackson's two satellite hospitals in the north and south end of the county, Roldan hired a crisis management firm to come in and advise her.

CBS4 News has learned that the 60-day contract with the Tennessee-based firm – Jarrard Phillips Cate & Hancock – will cost the hospital $99,500.

The company's website boasts that the firm has a team of "political operatives" and public relation specialists that will help hospitals "use the tools of politics and communications to achieve their most important strategic goals."

At least four members of the firm are currently in Miami advising Roldan and her staff. But until now, their role has been a closely held secret.

By Monday, Miami-Dade Mayor Carlos Alvarez reacted to the news.

"You're telling me they're bringing in a PR firm now? I think it's rather late," Alvarez told CBS4's Jim DeFede. "I thought that's why we had a management team at Jackson Memorial Hospital."

Chandi Williams credits the doctors at Jackson Memorial Hospital for saving the life of one of his twin daughters. He doesn't know what he would have done without Jackson.

Twenty Jackson nurses will be laid off Tuesday and more cuts may be on the way.

"I'm strong on let's fix it, not spin it," said Martha Baker, the Union President. "Let's fix the problem." 

Roldan had made no mention of the fact that she had hired this firm during her presentation of her recovery plan Friday – although it now appears they are destined to play a critical role in the hospital's future.

In fact, Robert Alonso, the vice president of public relations and marketing for Jackson, knew nothing about the firm being retained until he was introduced to them 30 minutes before Roldan made her presentation to the board Friday.

Friday night Alonso walked into Roldan's office and resigned.

Contacted at his home on Sunday, Alonso said: "I resigned to pursue other interests. I love the institution. It's a phenomenal place. I want the institution to thrive. I want the institution to flourish."

Alonoso would not say if his resignation was linked to the hiring of Jarrard Inc., but he did say: "I have no hard feelings against Dr. Roldan. I wish her the best."

In a statement to the CBS4 I Team Sunday afternoon, Roldan acknowledged Alonso's resignation and wrote: "We regret his departure as we would the loss of any valuable team member at a time so crucial and challenging to JHS's long-term success."

Roldan also defended the decision to hire the out-of-state consultants: "Jarrard Inc. is a recognized and respected hospital crisis communications specialty firm that works with hundreds of hospitals throughout the United States. Hospital communications is all they do. They will assist me and our communications team with their counsel and their work."

Roldan said she notified the chairman of the Public Health Trust, John Copeland, about her intention to hire Jarrard Inc. It appears the contract for $99,500 – which includes $87,500 in fees and another $12,000 in expenses – was written in such a way to get around the need for board approval. Contracts of $100,000 or more must be approved by the Public Health Trust.

Martha Baker, the president of the union representing Jackson's nurses and doctors, questioned whether the hospital should spend almost $100,000 on a crisis counselor.

"It doesn't seem like it's the time to start paying outside experts to start to communicate or spin why you would be cutting patient care in Dade County," Baker said. "I'd rather focus on fixing the problems of Jackson."

During Friday's meeting, Roldan acknowledged that her plan would likely create a firestorm in the community.

"Of course this plan is controversial," Roldan said. "There will be push back."

Jarrard Inc. will help manage that pushback. The Tennessee-based company's motto: "Where hospital's come to win."

David Jarrard, the firm's founder, said he had been watching the crisis brewing at Jackson for months. He said Jackson's problems were well known throughout the healthcare industry. He said a little more than a week ago, he contacted Roldan and pitched his company's services to her. He also said his firm had been recommended to Roldan by individuals in South Florida.

While he did not say who those individuals were, Jarrard said he did not pay anyone locally a broker's fee for helping negotiate the deal between Jackson and his firm.

Roldan said the firm "had no previous connection with our hospital, any board member or anyone on our leadership team."

"I believe we are obligated, now more than ever, to ensure our communications are as clear as possible," Roldan wrote. "I believe engaging this firm will help us do just that."

Jarrard said it is possible that after the 60 days are up, the contract might be extended.

Miami Dade County Commissioner Sally Heyman said she was surprised to hear Jackson was hiring outside consultants. "I have a real problem with all of it," she said.

The following is the statement released Sunday by Jackson President Eneida Roldan to questions submitted by the CBS4 I Team regarding the resignation of Robert Alonso and the hiring of Jarrard Phillips Cate & Hancock:


Robert Alonso, Jackson Health System's vice president of public relations and marketing, has stepped down from his post. We regret his departure as we would the loss of any valuable team member at a time so crucial and challenging to JHS's long-term success. We appreciate Mr. Alonso's years of service to JHS and sincerely wish him the best. By policy, we cannot comment further on his decision or other matters related to JHS personnel.

Our in house communications team is certainly talented, but I felt JHS would benefit from expert crisis communications counsel for the next 60 days before the departure of our senior communications director. Now I am certain these resources are essential. To that end, I can confirm we have contracted with Jarrard Phillips Cate & Hancock, a healthcare crisis communications specialist, to assist JHS and our leadership team during this challenging time.

Jarrard Inc. is a recognized and respected hospital crisis communications specialty firm that works with hundreds of hospitals throughout the United States. Hospital communications is all they do. They will assist me and our communications team with their counsel and their work.

Given our financial situation, it makes absolutely no sense to "staff up" our internal team today and add to payroll and headcount in that department. Instead, it makes perfect sense to contract with a temporary team of healthcare communications experts to get JHS through this time. While this is under my purview as president and CEO, I also consulted with the chairman of the PHT board in making this decision and, given the business relationship with this firm, am fully authorized to engage them. This firm had no previous connection with our hospital, any board member or anyone on our leadership team.

It's worth noting that a strong communications program is a key to a successful hospital turnaround. I believe good communications is an obligation of every provider of care. When communications are handled poorly, it can be very costly.

When people don't understand why something must happen -- as difficult as it can be -- or do not understand what they should do or what is expected of them or how they can help fix the problem, it can be very costly. It can be costly in terms of time lost to affect systemic changes, costly in terms of dollars spent that could have been saved or in the finding of new funding. For hospitals, bad communications can also be costly in terms of patient service if patients and physicians do not have clear direction on where to go or what to do as the organization changes. I believe we are obligated, now more than ever, to ensure our communications are as clear as possible. I believe engaging this firm will help us do just that.

Eneida O. Roldan, M.D., M.P.H, M.B.A.
President and CEO
Jackson Health System

(© MMX, CBS Broadcasting Inc. All Rights Reserved.)

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