COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

October 24, 2006

BOARD MEETING DATE:

November 14, 2006

SPECIAL NOTICE/HEARING:

NONE

VOTE REQUIRED:

MAJORITY

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer, San Mateo Medical Center

SUBJECT:

Attestation of San Mateo Medical Center Federal Tax Exempt Status

RECOMMENDATION:

Adopt a resolution attesting to the Federal Tax Exempt Status of San Mateo County and San Mateo Medical Center, as set forth under IRS Code, Section 115 of the Internal Revenue Code.

VISION ALIGNMENT:

Commitment: Responsive, Effective and Collaborative Government

Goal 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.

The agreement contributes to this commitment and goal by providing patient access to care.

BACKGROUND/DISCUSSION:

In accordance with Assembly Bill 915, San Mateo Medical Center, as a Federal Tax Exempt hospital, is eligible for supplemental reimbursement for outpatient hospital services. The Centers for Medicare and Medicaid Services (CMS) has questioned the government status of San Mateo Medical Center (SMMC) and as a result the California Department of Health Services, Medi-Cal Policy Division/Rate Analysis Unit (DHS) requested that SMMC provide documentation that attest SMMC’s tax status. A letter attesting to the Federal tax exempt status of San Mateo County, and stating that San Mateo Medical Center is a department of the County, was signed by the Assistant Controller and forwarded to the DHS. DHS legal office determined this letter was not sufficient and requested a Board Resolution attesting to the tax status of the County and the relationship of SMMC to the County.

FISCAL IMPACT:

The estimated annual receipts from AB 915 program represent approximately $250,000 per year.