Following a three-year investigation into the finances of Jackson Health System, the U.S. Securities and Exchange Commission on Friday charged the Public Health Trust that governs Miami-Dade’s $1.5 billion-a-year public hospital network with misleading investors about the extent of its deteriorating finances in advance of an $83 million bond sale in September 2009.
The federal action arrives just as Jackson officials are in the midst of a campaign to persuade Miami-Dade voters to pay for another bond issue — this one for $830 million.
But while the SEC investigation found that Jackson’s board misled bond investors in 2009, the agency order stopped short of accusing any individual trustees or administrators of intentionally causing the deception.
Instead, the agency attributed the failure to a new billing system that inaccurately recorded revenue and patient accounts receivable.
The SEC’s order did not impose monetary penalties or administrative actions against Jackson due to the hospital system’s fragile financial recovery, the board’s cooperation with investigators and remedial measures taken, such as the hiring of outside consultants and the restructuring of the board.