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Home My WebLink AboutMINUTES - 06111996 - C43 - ✓ C TQ: BOARD OF SUPERVISORS Contra 1 FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR '/� Costa n. „ems June 5, 1996 OUnty DATE: LEGISLATION: AB 2745 (Richter) REVISING THE MANN IC HOSPITAL DATA IS REPORTED, THEREBY RISKING AFFEC ING THE SUBJECT: AMOUNT OF DISPROPORTIONATE SHARE HOSPITAL FUNDING AVAILABLE TO PUBLIC HOSPITALS SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT a position in OPPOSITION to AB 2745 by Assemblyman Bernie Richter which would revise the manner in which hospital data is classified and reported to the Office of Statewide Health Planning and Development,,thereby running the risk of impacting the data used to calculate disproportionate share hospital payments. BACKGROUND: Under current law, counties contribute funds to match Federal disproportionate share funding which is then returned to various public and private hospitals which qualify as disproportionate share hospitals because of the percentage of low-income, indigent and Medi-Cal patients they serve. The amount each hospital receives is based on data reported by the hospitals and the manner in which the data is classified by the Office of Statewide Health Planning and Development. As the attached letter to the Chair of the Assembly Appropriations Committee indicates, even though a statement has been added to the bill that it is not intended to affect the disproportionate share hospital funding formula, there is concern that the changes in reporting of data could have an indirect consequence of impacting that formula, regardless of what intent is indicated. The Health Services Director and the California Association of Public Hospitals and Health Systems recommend that the Board of Supervisors indicate its opposition to AB 2745 and this office concurs with that recommendation. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): � io ACTION OF BOARD ON June 11, 1996 APPROVED AS RECOMMENDED X 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. ATTESTED June 11, 1996 Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF CC: See Page 2 SUP I AND COUNTY ADMIN RATOR BY i cc: County Administrator Health Services Director The Honorable Bernie Richter Assemblyman, 3rd District Room 448, State Capitol Sacramento, CA 95814 Les Spahnn Heim, Noack, Kelly & Spahnn 1121 L Street, Suite 100 Sacramento, CA 95814 -2- MAY-31-1596 12:37 FEALTH SERVICES ADMIN. 510 370 50% P.03iO3 r , California Association of Public Hospitals and Health Systems 2000 Center Street, Suite 308, Berkeley, CA 94704 Phone 510 1649-7650 Fax 5101649-1533 May 13. 1996 Charles Poochigia n,Chairman Assembly Appropriations State Capitol,Room 5136 Sxramet=,CA 95814 SUBJECT: Assembly B712745 -OPPOSE Dear Chairman Poochigian: On behalf of the members of the California Association of Public Hospitals and Health Systems(CAPH),we respectfi&Y n quest your opposition to Assembly Bili 2745(Richter)which would require the Office of Statewide Health Planning and Development(OSHPD)to modify its Accounting and Reporting Manual for California Hospitals. While we appreciate the recent amendment bAcating that the new data would not be used for purposes of the Medi-Cal Disproportionate Shane Hospitals(DSH)payment program,we believe your measure would indirectly affect data curiwdy used for the program. Currently,the data used for DSH comes from various places on the OSHPD report,many of which will be changed as hospitals reclassify infbMadon in a new payor category. While the bill may assure that the new data will not affect DSH,we do not believe the bill can assort✓that a change in the entire data collection process will not affect DSH. The collection of anew set of numbers changes the entire report. We do not dispute that 4SHPD accounting reporting requirements require assessments and changes. In fax, CAPH has supported hospital industry efforts to re-evaluate the OSHPD reporting manual. At the crux of these efforts is an understanding that changes to payor categories are highly technical,require review by highly specialized personnel,and can not be dealt with in isolation of the cuntent manual. We believe AB 2745 requires a process which allows all affected paries to carefully consider the financial and policy implications Of proposed changes to the Repotting Manual. The Reporting Manual is voluminous and is amended often without legislation through a proper and open review process within and in consultation with OSHPD. We believe that is the most appropriate mechanism to address rhe concerns raised by the proponents of this bill. Thank you for your consideration. If there are any questions,please contact me at 510-649-7650 or our Sacramento representative Terri Thomas at 916441-2741. Sincerely. Denise K. Martin,,MPH President& CEO C: CAPH Board Wmbcrs TOTAL P.03 MAY-31-1996 12:37 HEALTH SERVICES ADMIN. 510 370 5095 P.03/03 � California Association of, *� Public Hospitals and Health Systems 2000 Center Street, Suite 306, Berkeley, CA 94704 Phone 510 r(149-7650 Fax 510 1 649-1533 May 13. 1-996 Charles P'oochfgian,Chairman Assembly Appropriations State Capitol,Room 51361 Sacramento,CA 95814 SUSPECT: Assembly Bill 2745 -OPPOSE Feat Chairman Poochigian: On behalf of the members of the Cali kmia Association of Public Hospitals and Health Systems(CAPH),we respectfully request your opposition to Assembly Bill 2745(Richter)which would requite the Office of Statewide Health Planning and Development((?SHPT])to modify its Accounting and Reporting bianual far California Hospitals. While we appmeiate the recent amendment btdioating that the new data would not be used for purposes of the Medi-Cal Disproportionate Share Hospitals(DSH)payment program,we believe your measure would indirectly affect dace cunwdy used for the program. Currently,the data used for DSK cc es from vmjous planes on the 0SUPD report,many of which will be changed as hospitals reclassify iak oration in a new payor category. While the bill may assure that the new data will not affect DSH,we do not believe the bill can assure that a change in the entire data collection pro=s will not affect I)SH. The Collection of a new set of numbers changes the entire report. We do not dispute that.OSHPD accoura ing reporting requirements require assessments and ebanges. In fact, CAPH has supported hospital industry efforts to re-evaluate the OSHPD r+rpo tfn.,g manual. At the crux of these efforts is an understanding that changes to payor categories are highly technical,require review by highly specialized personnel,and,can not be dealt with in isolation of the current manual. We believe AB 2745 requires a process which allows all affected parties to carefully consider the fis>ancW and policy implications of proposed changes to the Reporting Manual. The Reporting Manual is voluminous and is amended often without legislation tbrough a proper and open review process within and in Consultation with 0SHPD. We believe that is the most appropriate mechanism to address the concerns raised by the proponents of this bill. 'Mann you For your consideration. If there art any questions,please contact meat 510-6 9-7650 or our Sacramento representative Terri Thomas at 916441-2741. Sincerely. Denise K. Martin,MPH President& CEO C: CAPH Board Ytembcrs TOTAL P.03