HomeMy WebLinkAboutAgenda - 08-20-1996 - VIII-K 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: AUGUST 20, 1996
Action Agenda
Item #-[=--K
SUBJECT: BUDGET APPROPRIATION TO HOME HEALTH AGENCY OF CHAPEL HILL
DEPARTMENT: PUBLIC HEARING: Yes_X—No
BUDGET AMENDMENT REQUIRED: Yes_X No
ATTACHMENT(S): INFORMATION CONTACT:
LETTER FROM CHARLES MILCH MANAGER'S OFFICE, EXTENSION 2300
TELEPHONE NUMBERS:
Hillsborough 732-8181
Durham 688-7331
Mebane 227-2031
Chapel Hill 967-9251
PURPOSE: To reconsider the annual appropriation to the Home Health Agency of Chapel Hill
relative to its change in tax status to a for-profit entity.
BACKGROUND: Charles Milch,Chief Executive Officer of the Home Health Agency of Chapel Hill
informed the county in late July of the change in tax status as referenced in the attached
letter. In reviewing BOCC appropriations to outside agencies over the years it is very
apparent that the vast majority of appropriations have been made to non-profit
organizations. This has been the"unwritten rule of thumb." We estimate that 85 to 90%
of the agencies receiving county appropriations have been organizations exempt from
taxation under 5016 of the internal revenue code"charitable organizations." The other
10 to 15%of the organizations receiving non-departmental appropriations are either
governmental (OPC, libraries,recreation,etc.)and/or public purpose type organizations
(Information and Referral,Cable TV Committee,RTP Regional Partnership,etc.). Based
on our review of the last several years appropriations, we could not determine where any
funds were awarded to a for-profit entity.
8/14/96
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RECOMMENDATION: Based on staff examination, the Manager recommends that the Board of
Commissioners rescind the FY 96-97 appropriation to the Home Health Agency
of Chapel Hill.
8/14/96
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Home Health Agency of Chapel Hilo Inc.
July 22, 1996 �Ar'',c�►�,�
JUL 2 51996`
Mar,ager,s J:
Mr. John Link
County Manager
Orange County
P.O. Box 8181
Hillsborough, NC 27278-8181
Dear M .
As you may be aware, the healthcare environment has been experiencing many transitions over
the past several years. To better meet the needs of our patients, the Home Health Agency of
Chapel Hill has recently undergone its own transition.
It is my pleasure to inform you that the Home Health Agency of Chapel Hill has been acquired
by Columbia/Raleigh Community Hospital and the Columbia Healthcare System. Our
commitment to provide quality health care services in our community will be continued and
enhanced through this acquisition. The net proceeds of this sale will result in the
establishment of a charitable foundation, Home Health Foundation of Chapel Hill, Inc.,
governed by a community Board of Directors..
As a result of this acquisition, the Agency's tax status will change from not-for-profit to a for-
profit entity. As such, will we be eligible to continue to receive county grant funds for the
provision of care to medically indigent county residents?
If you have any questions or need additional information , please do not hesitate to contact me
at 918-2217.
Thank you for your past support of this organization and I look forward to your response.
Sincerely,
C"
Charles Milch
Chief Executive Officer
CM/gf
cc: A. Kittrell, Assistant County Manager
M. Carey, Chair, Board of Commissioners
�� 1101 Weaver Dairy Road
Chapel Hill,North Carolina 27514
Visisin1a Nurse (919)929-7149 or 1 (800)672-5905
Aaeocuno orTrAna—A Fax:919/929-1610(Administration) Fax:919/929-1344(Clinical) ,
on Aaveoaw d H&Wflwe OrWiWions
A Community Sponsored Not-for-Profit Organization Serving Orange,Chatham Durham,and Neighboring Counties