Hialeah officials are turning up the pressure on two of the city’s biggest hospitals, saying Palmetto General and Hialeah Hospital have rung up more than $3 million in unpaid water and sewer bills and warning that tougher enforcement is on deck if the accounts are not brought current. City leaders say collecting the money is key to fixing Hialeah’s aging water system and easing the squeeze on regular residents’ monthly bills.
According to city records reviewed by local reporters, Palmetto General is listed as owing about $1.35 million and Hialeah Hospital about $1.03 million. Together, the two accounts make up roughly two-thirds of an estimated $4.5 million in overdue water-related charges. In April, the city sent the hospitals a letter giving them until May 17 to hammer out a payment plan or face stiffer action. As reported by the Miami Herald, potential steps include liens, lawsuits and, in a worst case, cutting off some or all water service.
Mayor: City won’t keep subsidizing unpaid bills
Mayor Bryan Calvo has cast the showdown as part of a broader push to stop large institutional customers from shifting their costs onto ordinary ratepayers. “The city is basically subsidizing them to the tune of roughly $3 million,” Calvo told the Miami Herald, adding that Hialeah will use every enforcement tool allowed under the law while trying to avoid any move that could jeopardize patient care.
Hospitals say they’ve tried to pay
Healthcare Systems of America (HSA), which operates both Palmetto General and Hialeah Hospital, says the story is more complicated. The company maintains it has attempted to make payments, but that city officials told HSA those funds would be applied to outstanding invoices left behind by the hospitals’ former operator.
HSA argues it should not be held responsible for debts tied to Steward Health Care, which filed for Chapter 11 bankruptcy in May 2024, a development detailed in national coverage by the AP. Both Palmetto General and Hialeah Hospital list HSA as their operator on their websites.
What’s at stake for residents
City officials say getting the delinquent accounts paid would free up cash to repair and upgrade local water infrastructure, which they argue is necessary if Hialeah is ever going to bring down costs for households that already face some of Miami-Dade County’s higher rates. They point to city data showing that fewer than 40 of more than 60,000 accounts are more than 120 days overdue, and say big institutions need to play by the same rules as everyone else…