SUBJECT
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Public Hearing to consider adoption of an amended Assessment Resolution and Non-Ad Valorem Assessment Roll pursuant to Ord. 2022-029, as amended, the Polk County Local Provider Participation Fund Ordinance.
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DESCRIPTION
On September 3, 2024, the Board adopted Resolution 2024-157 to set the 2024 assessment rate for collection of the Polk County Local Provider Participation Fund (LPPF) annual special assessment from the six area hospitals subject to the special assessment.
Subsequent to the adoption of Resolution 2024-157, the State of Florida Agency for Health Care Administration (AHCA) approved Lakeland Regional Medical Center (LRMC) as a statutory teaching hospital, based on the hospital’s seven accredited residency programs and 100 residents engaged in such programs. This designation by AHCA moves LRMC from Tier 1 to Tier 3 in the Low-Income Pool (LIP) funding model, enabling the hospital to net an estimated additional $9M in LIP funds through the LPPF program.
In order to receive the additional funding, the assessment rate set forth in Section 5 of Resolution 2024-157 must be revised, and the amended rate adopted, to impose and collect the LPPF special assessment from all six hospitals in the aggregate amount required to generate sufficient revenue to fund the non-federal share of payments under the LPPF program. The proposed, amended rate of collection for the special assessment is 3.35% of net inpatient revenue excluding Medicare and 9.90% of net outpatient revenue excluding Medicare for each assessed property. This will result in a total assessment amount of $76,873,824, to be collected from all six hospitals, cumulatively. Under Resolution 2024-157, which will be superseded and replaced by this amended Assessment Resolution, the total amount to be collected from all six hospitals was $69,903,127, cumulatively. As a result, a budget resolution is necessary to account for the unanticipated funds which will be temporarily held by the County until the intergovernmental transfer to AHCA is made.
RECOMMENDATION
1) Approve and adopt the amended Assessment Resolution and Non-Ad Valorem Assessment Roll setting the rate of collection for the 2024 Local Provider Participation Fund special assessment; 2) Authorize the County Manager to execute, on behalf of Polk County, the Low Income Pool Program amended Letter of Agreement with the State of Florida Agency for Health Care Administration on or before the stated deadline; and 3) approve the budget resolution for unanticipated revenue to the Local Provider Participation Fund.
FISCAL IMPACT
Upon approval, the budget resolution will increase the FY 24/25 Local Provider Participation Fund budget by $6,970,697 for the unanticipated revenue associated with the amended assessment rate.
CONTACT INFORMATION
Joy Johnson, Administrator, Health & Human Services 863-534-5204
Sandra Howard, Deputy County Attorney, 863-534-6437