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HomeMy WebLinkAboutMINUTES - 05051992 - 1.69 fri 1 a 69 TO: BOARD OF SUPERVISORS Contra FROM: Costa Phil Batchelor, County Administrator g'��:�. s Mark Finucane, Director ,,. CQUrIt DATE: Health Services Department -"P SUBJECT: April 17 , 1992 SB-1255 Medi-Cal Contract SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: Authorize the Health Services Director to transfer a maximum of $6, 000, 000 to the State of California as authorized under SB-1255. II. FINANCIAL IMPACT: Merrithew Memorial Hospital will be eligible for a maximum of $6. 0 million in matching Federal funds. See background information for full discussion. III. BACKGROUND: On August 29, 1991 the Board approved the transfer of $2 , 000, 000 to the State of California as authorized under SB- 1255. Federal grants to the States for the Medicaid program (Medi- cal in California) are authorized under Title XIX of the Social Security Act to provide medical assistance to certain persons with low income. These Medicaid programs are jointly financed by the Federal and State governments and administered by the States. State Medicaid agencies conduct their programs according to the Medicaid State plan approved by the Administrator of the Health Care Financing Administration (HCFA) . To carry out the Medicaid program, the State agency pays providers for medical care and service provided to eligible Medicaid recipients. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATUREM: : ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. cc: Health Services Administration: ATTESTED Mark Finucane PHIL BATCHEL R,CLERK OF THE BOARD OF Patrick Godley SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) BY DEPUTY P -2- The Federal government pays its share of Medicaid program expenses to the State on a quarterly basis according to a formula. The State share of Medicaid program expenses is paid from "State funds", that is, those funds over which the State legislature has unrestricted power of appropriation. In California, the program "split" is 50% Federal financing, 50% State financing. SB-1255 (Chapter 996, Statutes of 1989) added Section 14085.6 to the Welfare and Institutions Code and established a program whereby certain voluntary transfers and donations will be utilized by the State to provide funds to disproportionate share hospitals to assist them in enhancing or maintaining access for Medi-Cal beneficiaries. This program is similar in nature to those established in Tennessee and other states. These voluntary transfers would be used to match Federal dollars under the Medi-Cal program, thereby increasing the total revenue base available for distribution (i.e. , $1 donation will generate $1 in Federal funding back to the disproportionate hospitals) . Merrithew Memorial Hospital is one of the forty-one (41) disproportionate hospitals eligible for reimbursement under this program. ' The California Medical Assistance Commission (CMAC) is responsible for administration of SB-1255. The Commission solicits the donations and distributes the funds collected through the Medi-Cal contracting processing. ISSUES Issues 1: The State SB-1255 Plan may be disallowed at the Federal level. Discussion: If a disallowance were to occur, some part of the "increased" Federal share might be required to be reimbursed. Issue 2: Facilities which make a "voluntary" donation are not guaranteed of a return of either the matching Federal funds or the donation itself. Discussion: SB-1255 is intended to provide a workable program. If the most "needy" facilities in the State make donations and do not receive- back, at a minimum, $1. 50 for each $1. 00 in donation, the program will fail. While, because of Federal restrictions, the State cannot guarantee the return of the transferred funds, it is the intent of the program that no "donating" facility will be disadvantaged. To date, the Medi-Cal Commission has held four rounds of voluntary donations and supplemental contract negotiations. Merrithew has voluntarily contributed a total of $4 ,750, 000; supplemental Medi- Cal contract payments have been $7, 600, 000.