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Home My WebLink AboutAgenda - 12-15-1998 - 8mORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 15, 1998 Action Agenda Item No. g- rn SUBJECT: Medicaid Maximization Funds DEPARTMENT: Health PUBLIC HEARING: (Y/1~ BUDGET AMENDMENT: (Y/1~ ATTACHMENT(S): Letter(s) from NC Department of Health and Human Services INFORMATION CONTACT: Rosemary L. Summers, Health Director Extension 2412 Allocation Plan TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 PURPOSE: To accept the Medicaid maximization funds allocated to Orange County for the period October 1994-September 1997. BACKGROUND: Beginning in 1994, the federal government required each state to "set aside" a portion of annual Medicaid earnings as a potential cushion against overspending those funds. Since that time, the federal government has not used all of the withheld funds . Last yeaz, Orange County received a portion of the federal cost settlement funds for fiscal yeaz 1994-95. Those funds were used to purchase equipment and furnishings for the Health Department offices and clinics at Southern Human Services Center. The allocation recently received by the Health Department includes the remainder of 1994-95 and full year reimbursements for federal fiscal years 1995-96 and 1996-97. These funds aze re-allocated based on Medicaid earnings for the year and aze very dependent on federal and state Medicaid performance. As with all Medicaid reimbursement, the funds aze required to be budgeted and expended to fiuther the objectives of the program that generated the receipts. Funds may be expended for a variety of public health needs and activities or they may be held in reserve for future needs of the department. The memoranda from the State on page 4 of this abstract provides information related to the expenditure of these funds. The funds aze not to replace current budget allocations for these program azeas. The total amount of funds allocated to the Orange County Health Department for the period October 1994 -September 1997 is $235,481. A proposed spending plan is included on page 3 of this abstract. The proposal includes expending funds for non-recurring items. Priority has been given to replacing older equipment, meeting OSHA requirements, and possibly redesigning clinical space. Since the proposal includes non-recumng capital purchases, the Budget and Finance Directors recommend that these funds be budgeted in a sepazate capital project ordinance. This will enable unexpended funds at the end of each fiscal yeaz to cazry forwazd into future fiscal yeazs. RECOMMENDATION(S): Manager recommends accepting the Medicaid maximization funds of $235,481 to be spent in accordance with the attached plan. Medicaid Maximization Funds Allocation Plan Orange County Health Department Funds from October 1994 -September 1997 Program and Estimated Expenditure Estimated Cost Dental Health (10) Fiberoptic Highspeed Handpieces $ 5,650 Slowspeed Handpieces and Attachments (6) Midwest motors 2 speed $4,140 (10) Midwest nose cones for restorative $1,930 (12) Midwest nose cones for polishing $ 672 (10) Contra angle sheaths $1,139 (10) Contraangles $1,139 Subtotal Slowspeed Handpieces $ 9,020 Hu-Friedy Stainless Steel Cassettes (50) Large for restorative and prophylaxis and (20) exam $ 3,115 (2) Ultrasonic Cleaners $ 2,799 (1) Handpiece Sterilizer $ 2,860 Total Dental Health $23,444 Personal Health IKON Records Imaging System $33,000 Includes records scanner, PC, printer, software, & set-up Both medical and dental health records would be scanned Temporary Personnel for Imaging Project $10,400 20 hrs/week for 1 year @ $10/hr LCD Panel $ 6,000 Motorized Medical Records Shelving (Whiffed Building) $28,000 and Remodeling Records Room (4) Exam Beds with warming trays $ 5,600 Refrigerator for SHSC Laboratory $ 900 (2) Centrifuges for Laboratories $ 1,000 Total for Personal Health $84,900 Whiffed Building Redesign Clinical Areas at Whiffed $127,137 3 Grand Total Allocation $235,481 Requesting carryover of any funds not expended in FY 98-99 to future fiscal years. p ~ ~~ a~ S~ •~wa ~ ~~ Ouw North Carolina Department of Health and Human Services 101 Blair Drive • Post Office Box 29526 • Raleigh, North Carolina 27626-0526 (919) 733-4534 • Courier #56-20-00 James B. Hunt Jr., Governor July 13, 1998 MEMORANDUM TO: Local Health DirecQtor,.~ FROM; Chris Hoke, J.D. W' Deputy State Health Director SUBJECT: Medicaid Cost Settlemem Reimbursement 4 H. David Bruton, M.D., Secretary I am pleased that we are now able to electronically transmit to you Wis week Medicaid cost settlement funds for fiscal years 199495 (you previously retxived partial payment for 199495 -this completes payment for that year) and fiscal year 1995-96. The attached shows the reimbursement detail for your health department. These Medicaid reimbursement funds are required to be budgeted and expended to finther the objectives of the program that generated the receipts. Consistent with this requirement, these Medicaid receipts may be held in reserve for future needs or expended for a variety of public health needs and activities, including but not limited to: expanding the provision of preventive and primary care services m uninsured andunder-insured populations; expanding the provision of support services such as interpreter services, care coordination, home visiting and transportation; Operating expenses, including medical and laboratory supplies, in programs that generate Medicaid revenue; public information, out<•esch, and other population based services; Capital improvement such as building construction, renovation arld repair - if the capital expenditure would benefit public health programs other than programs that generated the Medicaid receipts, a simple cast allocation plan would need to be developed to assure that the Medicaid receipts are used in the program that generated the receipts -for example, if 80°Yo of a new health department building would house the child health program, Medicaid receipts from the child health program could be used to cover 80% of the cost of the new building; automation of clinical, fiscal and administrative operations, if there is a simple cost allocation plan for allocating costs appropriately to the programs that generated the Medicaid receipts; North Carolina.• Host of the 1999 Special Olympics World Summer Games 5 Any other reasonable public health expenditures, if there is a simple cost allocation plan for allocating costs appropriately to the programs that generated the Medicaid receipts. We have already submitted the paperwork to the Division of Medical Assistance for the cost settlement for fiscal year 1996-97. Once we complete our catch-up, this cost settlement process will become an annual event. cc: County Finance Officer Page 2 MEDICAID MAXIMIZATION PROJECT DISTRIBUTION BY LHD AND DEC 6 FY OCTOBER 1994 -SEPTEMBER 1996 LHD NUMBER LHD~DEC RCC PROGRAM TOTAL DUE 68 Orange 4138 MCH 5134,777.86 4140 DENTAL 510,802.26 4157 FP 513,221.10_ 4239 AH $32.73 5158,833.95 3/9/98 76 ~ SfA~v~ y° /'° °~f ti ~~"ra sew • auw+~ 7 North Carolina Department of Health and Human Services 101 Blair Drive • Post Office Box 29526101 • Raleigh, North Carolina 27626-0526 (919) 733-4534 • Courier #56-20-00 James B. Hunt Jr., Governor H. David Bruton, M.D., Secretary November 30,1998 MEMORANDUM TO: Local Health Director FROM: Chris Hoke, J.D. cN Deputy State Health Director SUBJECT: Medicaid Cost Settlement Reimbursement I am pleased that we are now able to electronically transmit to you this week Medicaid cost settlement funds for fiscal year 1996-97. The attached shows the reimbursement detail for your health department. These Medicaid reimbursement funds are required to be budgeted and expended to further the objectives of the program that generated the receipts. Consistent with this requirement, these Medicaid receipts may be held in reserve for future needs or expended for a variety of public health needs and activities, including but not limited to: expanding the provision of preventive and primary care services to uninsured and under-insured populations; expanding the provision of support services such as interpreter services, care coordination, home visiting and transportation; operating expenses, including medical and laboratory supplies, in programs that generate Medicaid revenue; public information, outreach, and other population based services; capital improvement such as building construction, renovation and repair - if the capital expenditure would benefit public health programs other than programs that generated the Medicaid receipts, a simple cost allocation plan would need to be developed to assure that the. ._ Medicaid receipts are used in the program that generated the receipts -for example, if 80% of a new health department building would house the child health program, Medicaid receipts from the child health program could be used to cover 80% of the cost of the new building; automation of clinical, fiscal and administrative operations, if there is a simple cost allocation plan for allocating costs appropriately to the programs that generated the Medicaid receipts; North Carolina: Host of the 1999 Special Olympics World Summer Games 8 Any other reasonable public health expenditures, if there is a simple cost allocation plan for allocating costs appropriately to the programs that generated the Medicaid receipts. If you have any questions, please feel free to call me at 919-715-4168 or Steven Gamer at 9I9-715-5265. cc: County Finance Officer Page 2 . ~ MEDICAID COST SETTLEMENT g DISTRIBUTION BY LOCAL HEALTH DEPARTMENT FY OCTOBER 1996 -SEPTEMBER 1997 PROVIDER LHD/DEC RCC PROGRAM TOTAL DUE 3404368 Orange 4126 STD $158.24 4138 MCH $61,007.15 4140 DENTAL $9,656.38 4157 FP $5,770.94 4239 AH $54.77 $76,647.48 76 11/16/98 ~i