COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health System

 

DATE:

April 12, 2010

BOARD MEETING DATE:

April 27, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Jean S. Fraser, Chief, Health System
Susan Ehrlich, MD, MPP, Chief Executive Officer
San Mateo Medical Center

SUBJECT:

Intergovernmental Agreement Regarding Transfer of Public Funds

 

RECOMMENDATION:

Adopt a Resolution authorizing the President of the Board to execute an Intergovernmental Agreement Regarding Transfer of Public Funds between the County of San Mateo and the California Department of Health Care Services up to a total maximum amount of $8,514,217 for the period of July 1, 2009 through September 30, 2010.

 

BACKGROUND:

In 1994 your Board approved an agreement with the San Mateo Health Commission for San Mateo Medical Center (SMMC) to serve as a participating hospital in the Health Plan of San Mateo (HPSM), the Medi-Cal capitated program of the Health Commission. The majority of San Mateo County Medi-Cal recipients are automatically enrolled in the HPSM, and are assigned to hospital-affiliated primary care providers. Your Board has approved numerous amendments to this agreement that have, among other things revised fee schedules, adjusted allocations, and extended terms.

 

DISCUSSION:

The San Mateo Health Commission received an Intergovernmental Transfer (IGT) increase in its total compensation under its Medi-Cal Services Contract with the State of California effective for the 2009-2010 fiscal year. This increase is in addition to the Commission’s share of the rate increases for Medi-Cal Managed Care Plans, including County Organized Health Systems health plans. Your Board previously approved an amendment of the agreement between SMMC and the Commission increasing the supplemental quarterly payments for a total of $22,166,667 for the year. For fiscal year 2009-10, this is an increase of $4,166,667 over the previous fiscal year. The increase is to replace the supplemental funding SMMC received for its long term care services to Medi-Cal residents. HPSM assumed responsibility for this benefit on February 1, 2010 and as such, SMMC could no longer claim the supplemental funds.

 

In order to fund the non-federal share of the Medi-Cal managed care capitation rate increase discussed above, County staff coordinated to enter into a contract with the DHCS to transfer $8,514,217 to the State of California, which would then be matched by subsequent payments to the SMMC. The funding is for the period July 1, 2009 through June 30, 2010, and the term of the agreement is through September 30, 2010 to complete the business of the agreement.

 

County Counsel has reviewed and approved the Resolution and Agreement as to form.

 

Approval of this Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by providing care to inpatient, outpatient and emergency services patients who are clients of HPSM. It is anticipated that 21,000 Medi-Cal recipients will be treated at SMMC during FY 2009-10.

 

Performance Measure(s):

Measure

FY 2008-09
Actual

FY 2009-10
Projected

Number of Medi-Cal recipients treated at SMMC

20,767

21,000

 

FISCAL IMPACT:

The term of the Agreement is July 1, 2009 through September 30, 2010. The IGT is appropriated in the General Fund’s Contribution to the SMMC FY 2009-10 Adopted Budget.

 

Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medically indigent or to those covered by programs that do not meet the full costs of care are covered by the County’s General Fund contribution to SMMC.