SUBJECT
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Public Hearing to consider adoption of an Assessment Resolution setting the rate of collection and approval of the Non-Ad Valorem Assessment Roll for the 2024 Local Provider Participation Fund special assessment, and authorizing the County Manager to execute Letters of Agreement with the State of Florida Agency for Health Care Administration. (no fiscal impact)
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DESCRIPTION
On May 3, 2022, the Board adopted Ordinance 2022-029 establishing the Polk County Local Provider Participation Fund. Pursuant to such ordinance (as subsequently amended by Ord. 2024-028), the Board may annually adopt an Assessment Resolution setting the Assessment amounts that in the aggregate will generate sufficient revenue to fund the non-federal share of payments associated with Local Services (defined as health care services to Medicaid, indigent and uninsured members of the Polk County community) to be funded by the Assessment.
There are six area hospitals located in Polk County (all private, non-profit organizations): Winter Haven Hospital and Bartow Regional Medical Center (both operated by BayCare), Heart of Florida Regional Medical Center and Lake Wales Hospital (both operated by AdventHealth), Encompass Health Rehabilitation Hospital of Lakeland, and Lakeland Regional Health. These hospitals provide medical care annually to indigent and uninsured residents and those who qualify for Medicaid. On average, Medicaid covers only 60% of the costs of the health care services actually provided by area hospitals. The State of Florida received federal authority to establish the Statewide Medicaid Managed Care Hospital directed payment program to offset the hospitals' uncompensated Medicaid costs. The State of Florida also received federal authority to continue the Low Income Pool Program, ensuring continued government support for health care safety net providers to offset uncompensated charity care for uninsured low-income individuals. These programs use InterGovernmental Transfers to allow local county governments to provide matching funds on behalf of qualifying health care service providers, to the Agency for Health Care Administration.
The special assessment would only be imposed upon the six Hospitals located in Polk County, as listed above. The proposed rate of collection for the 2024 Local Provider Participation Fund special assessment is 3.94% of net patient revenue for each Hospital. In order to impose and collect the special assessment, as requested by the Hospitals, and pursuant to the procedures set forth in Ordinance 2022-029, as amended, the Board must adopt an Assessment Resolution and Non-Ad Valorem Assessment Roll.
If the Board adopts the Assessment Resolution, the State of Florida, through its Agency for Health Care Administration, will send Polk County a Letter of Agreement memorializing the County’s intent to participate in the Statewide Medicaid Managed Care Hospital directed payment program in 2024 to offset the Hospitals' uncompensated Medicaid costs. The Letter of Agreement must be signed by the County and submitted to the Agency for Health Care Administration before the deadline of October 1, 2024.
The County will invoice each of the six Hospitals for their mandatory payment amount, due upon receipt of invoice (around November 2024). Assessment funds collected by the County from the Hospitals will be submitted to AHCA through intergovernmental transfer upon the agency’s request.
RECOMMENDATION
1) Approve and adopt the Assessment Resolution and Non-Ad Valorem Assessment Roll setting the rate of collection for the 2024 Local Provider Participation Fund special assessment; and 2) Authorize the County Manager to execute, on behalf of Polk County, the (i) Hospital Directed Payment Program and (ii) Low Income Pool Program Letters of Agreement with the State of Florida Agency for Health Care Administration on or before the deadline of October 1, 2024.
FISCAL IMPACT
There is no fiscal impact to the County. Funds collected from the special assessment will be disbursed to AHCA upon the agency’s request.
CONTACT INFORMATION
Joy Johnson, Administrator, Health and Human Services, 534-5204