SUBJECT
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Public hearing to consider adoption of a resolution setting the rate of collection and approval of the non-ad valorem assessment roll for the 2022 Local Provider Participation Fund special assessment and authorizing the County Manager to execute Letter of Agreement with AHCA.
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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, 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.
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. 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 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.
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 would only be imposed upon the five Hospitals located in Polk County, as listed above. 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, the Board must adopt an Assessment Resolution and Non-Ad Valorem Assessment Roll.
Additionally, the County must enter into the attached Directed Payment Program Letter of Agreement with the State of Florida Agency for Health Care Administration (AHCA) agreeing to remit funds in an amount not to exceed $28,800,836 in order to participate in the Direct Payment Program. The Letter of must be signed by the County before the deadline of October 1, 2022.
If the Assessment Resolution is adopted, the Assessment Coordinator will invoice each of the 5 Hospitals for their mandatory payment amount, due by November 30, 2022. The total assessment amount to be collected is $29,827,904. All assessment funds collected by the County from the Hospitals will be submitted to ACHA 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 2022 Local Provider Participation Fund special; and 2. Authorize the County Manager to execute, on behalf of Polk County, the Directed Payment Program Letter of Agreement with AHCA on or before the deadline of October 1, 2022.
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
Sandra Howard, Deputy County Attorney, 534-6437
Joy Johnson, Administrator, Health and Human Services, 534-5204