SUBJECT
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Adopt resolution to accept unanticipated revenue and budget amendment for the Polk County Local Provider Participation Fund. ($7,930,464.00 one-time revenue and expense increase)
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DESCRIPTION
There are five 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), and Lakeland Regional Health. Each of the five area hospitals referenced above (collectively, the “Hospitals”) have requested that the County impose a non-ad valorem special assessment upon certain real property interests held by the respective Hospitals to help finance the non-federal share of the State's Medicaid program. The special assessment is only imposed upon the five Hospitals located in Polk County, as listed above.
These hospitals provide medical care annually to uninsured residents and those who qualify for Medicaid. On average, Medicaid covers only 61% of the costs of the health care services 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.
On May 3, 2022, the Board adopted Ordinance 2022-029 establishing the Polk County Local Provider Participation Fund. Pursuant to such ordinance, 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 Medicaid payments associated with Local Services to be funded by the Assessment.
On September 19, 2023, pursuant to the Ordinance 2022-029, the Board adopted the Assessment Resolution and Non-Ad Valorem Assessment Roll setting the rate of collection of $37,930,464 for the 2023 Local Provider Participation Fund Assessment. An increase of $7,930,464 from the original estimated assessment revenue of $30,000,000. This is in addition to the fund balance of $7,250,000 and $235,000 for investment earnings.
RECOMMENDATION
Request the Board to adopt resolution to accept unanticipated revenue of $7,930,464.00 and amend the budget of the Local Provider Participation Fund to $45,415,464.00.
FISCAL IMPACT
Revenue will be deposited in the Local Provider Participation Fund.
CONTACT INFORMATION
Kelvin Almestica, Healthcare Financial Administrator, 344-2382
Joy Johnson, Administrator, Health, and Human Services, 534-5204