HomeMy WebLinkAboutResolution 2018-119 N.C.S. 07/16/2018Resolution No. 2018-119 N.C.S.
of the City of Petaluma, California
AUTHORIZING THE
CITY MANAGER TO EXECUTE AN AGREEMENT
FOR INTERGOVERNMENTAL TRANSFER
WITH PARTNERSHIP HEALTHPLAN
OF CALIFORNIA
WHEREAS, since 2006, the California Department of Health Care Services (DHCS) has
offered local governments that provide health care the opportunity to secure additional Medi -Cal
revenues by participating in a voluntary Intergovernmental Transfer (IGT) program with their
local Medi -Cal managed care plan; and
WHEREAS, Partnership HealthPlan of California (PHC), is a non-profit community-
based healthcare organization that contracts with the State to administer additional Medi -Cal
revenues to public ambulance providers (i.e., Petaluma Fire Department) to offset previously
unreimbursed costs for serving Medi -Cal plan members; and
WHEREAS, Partnership HealthPlan of California covers members who currently make
up approximately 80% of HMO -managed Medi -Cal patients and, although the City incurs
significant costs for these types of ambulance transports, it can only contractually bill and expect
payment for a certain amount (i.e., a fixed rate of approximately $150 is received per Medi -Cal
patient whiles costs incurred equal approximately $1,200 per patient); and
WHEREAS, participation in an hltergovernmental Transfer Program represents an
opportunity for local government providers of Medi -Cal services to re -coup a share of their costs
for serving PHC patients, most notably because California tends to pay Plans at the lower end of
the actuarially sound rate range and the Federal government, tapping potentially unclaimed
Federal matches, works to make up the difference by requiring all managed care Plans to be paid
at an actuarially sound rate; and
WHEREAS, an IGT program of this type is a matching program and the Federal
government will match the transferred funds, pay half of the Plan's rate increases and, in the end,
the local entity receives its own funding plus the Federal match in return; and
WHEREAS, PHC's role is to collect and submit data to DHCS on each entity interested
in participating in the IGT and to assist each participating entity with the terms governing the
Program and use of newly received revenue; and
WHEREAS, PHC, as the agent for DHCS, has determined that the City of Petaluma
shall transfer funds equal to $393,094 to DHCS as the Provider Contribution and $78,618.80 as
the DHCH Administrative Fee pursuant to section 14164 and 14301.4 of the Welfare and
Institutions Code in order to receive estimated net new fiends totaling $330,000 in the form of a
lump sum amount of supplemental Medi -Cal revenues for the rate period of FY 2017/18; and
WHEREAS, the up -front funds required from the City of Petaluma can be garnered from
general tax revenues, patient fees or agency reserves made up of a combination of sources and
Resolution No. 2018-119 N.C.S. Page 1
while the total amount of PHC's payment back to the provider is considered Medi -Cal revenue
and must be used for health care services, the funds do not need to be Medi -Cal services
provided exclusively to Medi -Cal patients and funds do not have to be expended in the year
received.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Petaluma, as follows:
I, The proposed agreement with the California Department of Health Care Services for
Intergovernmental Transfer in order to increase Medi -Cal reimbursement for EMS
ambulance transport services previously provided to Partnership Health Plan's members
in FY 2017/18 and which will result in transfer of local matchable funds to the State in
late 2018, attached to this resolution as Exhibit A, is hereby approved and the City
Manager is authorized to sign the agreement on behalf of the City.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the ,Aprove¢ a to
Council of the City of Petaluma at a Regular meeting on the 161h day of July 2018, form:
by the following vote: i\
City,tt6rney
AYES: Albertson, Barrett, Mayor Glass, Vice Mayor Healy, Kearney, King, Miller
NOES: None
ABSENT: None
ABSTAIN: None _a
r
ATTEST:
City Clerkayor
Resolution No. 2018-119 N.C.S. Page 2
EXHIBIT A
CONTRACT # 17-94793
CONTRACT 417-94,793
tNTERGOVERINMENTAL AGREEMENT REGARDING
TRANSFER Of PUBLIC FUNDS
This Agreement 1,; entered into betwe�o.n the CALIFORNIA DEPARTMENT OF
I-1EALTI-[ CARE SERVICES ("DI-ICS")and the CIT'; OF PETALUMA FIRE DEPARTNIENT
(GOVERNMENTAL FUNDING ENTITYwith respect to the matters set forth belaw-
The parties: agree as follwivs-
AGREEMENT
Transfer 0fPublic FLUNk
1.1 The GOVERNIMENTAL FUNDING ENTITY ources to make transfer
of funs to DIICS pursuant tos-octioni 14164 and 14301.4 of flie Weltlare and Institutions Code.
The 0111OL111t transferred sliall be based on the sum of the. following rate, calegory per member Ni -
month (PNIMI) contribution increments multiplied by menibc.i- months:
Funding Entity:
city or Petaluma Fire Department
Health Plan,
Partnership
Rating Region,
Sonoma
Eslimated
v,Wnbution
Estimaled
Con flibution (Non=
Rate Category
Ph P1.1
rd ember Months
Federal Share)
Child - non MG111P
S0,14
344,63117
S
Child - MCHIP
3
0.03
221,1389
S 6,657
Adult - non MCHIP
5
0-55
160,5155
S 02,705
kdult . M,6H- 10
-0-113,
—5J411
$-
SPD
S
1,72
75,596
S t30,024
SIDFull—bLial
$
0,26
2-02
--T3�8 �41 1
1,153
S 35,907
S 2,329'�
BC TP
LTC
7-21
319
5 2, 2H
LTC Full Duals
4,10
11,832
40,500
0 ian a ' 7
pt I Expansion
71201 7 - 12;2017
S
OAG
197,207
S 11,832
r20i 8 - 612018
S
0,07
196,439
S 13,751
-1
Estimated Total
1, 3,31,113 45
�393,01
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Resolution No. 2018-119 N.C.S. Page 3
CONTRACT Pt 17-94793
The GOVERNNAENTAL FUNDING ENTITY agrees to initially transfer aniounts that tyre
calculated usiqj the Estimated Member Months in the chart above, which will be reconciled to
actual ciirollment For the, service period ot'July 1, 20 17 through June 30, 20 HS in accordance with
Sub -Section I _31 of this Agreement. The ffinds transferred shall NO used as described in Sulam
Section '22 of this A_p-coment. The fund,, shall be ftansferred in accordance with the. terms and
conditions, including schedule anal amount, established by DHCS.
1.2) The GOVERN IMENTA L FUNDING EN-rITY sliall certif,,r that the funds
transferred qualify for Federal Financial Participation pursuant to 42 C,F-R_ part 433, subpart B,
-nirces such as recycled Malicaid payments, Federal
and are not derived from impermissible sc I
money excluded from use, as Stale match, incl-yoramsible lases,, and ntmi-I:Kina fide provider -
related donations. Imperni1ssible, sour -es do not include patient care or other revenue. received
from programs such as Medicare or iMedicaid to the extent that the program revenue is not
obliViated to the State as the source of funding,
I
L3 DHCS shall reconcile the "EstiniaLedX-lember Months." in Sub -Section
1. I of this Agreement, to actualearollnient in HEALTH PLAN(S) 1`6r the ser} ce period of
July 1, 2017 through JIM-, 30. 2018 using actual CrIT011111CM1 figures taken from DHCS records.
Enrollment reconciliation will occur on an ongoing basis as updated enrollment figures become
considered finat two years, after June 30,101,9. If
ava able. ActualciirolltiicjitfigLircs��,I L
this reconciliation results in an increase to the total amount necessary to fund the, nonfederal
share of the payments. described in SUb-Scdlon 2-2, the, GOVERN M ENT.�%L 17UNDING
ENTITY a,gr Lmy additional I
rees to LT-1,11SIC ddiL onal funds accessary to cover the ditTereace- If this
reconciliation r0SL1tt.,' in a decrease to the total amount necosian, to fund the nonfiederal share of
the pa}jiieiits described in Sub-Sk-mion .1'2, DI -ICS agrees to reIL11-11 the urtexpended funds to the
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Resolution No. 2018-119 N.C.S. Page 4
CONTRACT hi17 -94793
GOVERNMENTAL FUNDING ENTITY. If DHCS and the GOVERNMENTAL FUNDING
ENTITY mutually agree, amOLMIS (11.10 to or owal by the GOVERN -MENTAL FUNDING
ENTITY may be offiet against fulure transfers.
2. Acceplatice and Use of Transferred Funds
11 DUCS Shall eXerckea its U1.1thorliv under section 14164 of the Welfare and
Institutions Code io accept funds transferred by the GOVERNNIENTAL FUNDING ENTITY
pUriliallt to this Agreement as, IGTs, to use for the purpose set forth in Sub -Section 2-1.
The funds transferred by the, GOVERNMENTAL FUNDING ENTITY
pLirstiant to Section I of this Agreement shall be used to fund the non-federal share olMedi-Cal
Managed Care actuarially sound. capitation rates dmribed in section 14301,44,h)(4) of the
Welfare and Institutions Code as reflected in the contribution PMPIM and rate categories,
reficoed in the ch art set forth In SLlh-SCCtlon 1. 1 . The funds transCerred shall be paid, together
with the relawd Federal Financial Part impafion, by DH 'S to HEALTH I'LAN(S) as part of
I 1EALTH PLAN(S)' capitation Tates for the service Ixriod of July 1, 2017 through June 30,
21018, In accordance With Section 14301A ofthe Welfare and Inifitutions Code.
2.;
DHCS sliall seCk Federal Financial Participation for the capitation rates
spc�eified in Sidi -Section 2.2 to the full extent Iv.rmitted bV federal law.
IA The parties acknowledge that Df ICS wilt obtain any neecssdry approvals
from the Centers, f,)r Nledicare and Medicaid Services.
15 OHCS shall not direct HEALTH PLAN(S)' eximiditure of the lm.ynienu
received PLU-SlIant to Sub -Section 2.2.
3, Assessment FCC
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Resolution No. 2018-119 N.C.S. Page 5
CONTRACT H 17-94793
I DHCS shall exercise its authority under section 14301.4 of the Welfare
and Institutions Code to assess a 20 percent fee related to the amounts transferred PUTNSUaIll to
Section I orthisA-greement, except as provided In SLIb-Section 1-1. GOVERNMENTAL
FUNDING ENTITY agrees to pay the full allIOUIlt ofthat assessment in addition to the funds
transferred punLlailll to S06011 I rat'i11is Agreement.
The 20 -percent assessment fee' shall not be applied to any INartion of funds
transferred pursuant to Section I tha! are. exempt in accordance with sections 1430 1.4(d) or
14301.5(b)(4) of the WcIt'Llic and Institutions Code. DHCS shall have sole discretion to
detenillne the amount of the funds transferred PUrSUallL to Section I that NN111 not be subjeet to a
20 1-yorcent fee. DHCS has determined that SO.00 of the trans.Cor arnounts,%vitl not tv assessed a
20 percent feo, sukiect to Sub -Section 3.3.
3-3 The20-percentassessrnent CCC lAirsuant to this Agreement is non-
refundable and shall be wired to DHCS separately frorn and simultancous to, the transfer
amount
s made under Section I of this Agreenicrit. If, at !he. time of lhe, reconciliation perromled
Pursuant to Sub -Section 1.3 oCtlils Agreement, there Is a clumpe in the .1111011111 transferred that is
sijb�jev to the 20-porcent assessment in accordance, with Sul -Section 3. 1, then I proportional
aqjustment to the assessment fee will. be made.
4. Amendments
4J No aniondment or modifiulion to this Agreement shall be binding on
either 1 -arty unless made in writing Lind exectited by I-oth parties,
4,2 The parties shall negotiate In good faith to ailiend this Agreement as
necessary and appropriate to Implement the requirements set Forth in Section 2 of this
Aurcornent.
4
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Resolution No. 2018-119 N.C.S. Page 6
CONTRAC*r H'I 7-94793
Nofice.s. Any and all notices required. pci-milled or desired to be given li-orcunder
by one, parry to the. othersliall be, in writing and shall be delivered to the other party personally or
by United Mate; First Class, Certified or Registered mail wilh postage propmald, addressed to the
other party at the address sit forth below:
To the GOVERNNIENTAL FUNDING ENTITY:
Jelin C. Brown. City tMaii-ager
Cite Of PetalUrnil
I I Engfiih Street
Petal L11112, CA 9495?
With copioi to:
David Kalin, Battalion Chief -EMS
PQW111111.1 Fire Deparvient
I 9S', D StreQ.1
Pet rltu11a. CA 94952
and
Corey Garberollo, Financo. Director
City of Petaluma
I I hagfish Street
Pe,WIL11111), CA 949-52
Coarberokoki"ci. let'l I II ma'C'mis
and
Carolyn Stewart
Senior Director of Financial Analysis
Partnership I kahliPlan of Calico is
4665 Business Center Drive
Fair tela. CA Q4534
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Resolution No. 2018-119 N.C.S. Page 7
CONTRACT H 17-94,793
To DFfCS-,
Sandra Dixon
California Department ofl-lealill Care, Services
Capitated Rates Development Division
1501 Capitol Ave., Suite 71-4002
,IS 441
Sacramento, CA 95814
6. Other Provisions
6.1 This Agreement contains the entire Agreement between the. parties with
resIv,?,et to the Xledt-Cal payments described in Sub -Section 22 of this Agreement that are funded
by the GOVERN MENTAL FUNDING ENTITY, and sulv.rsedes any previous. or
contemporaneous oral or written proposals, SlatCnlentS, (IISCLPS'SiODSnegotiations or other
agreements. between the GOVERNMENTAL FUNDING E'NTITY and DF[CS relating to the
subject matter oaf this Agmcenient. Tliis Agreement is not, however, intended to be the sole
, a,
areement behveea the parties on matters relating to the funding and administration of the, -N-k-dt-
Cal pro rani. This Agreement shall not modify the terms ofaiiy other agreement, existing or
entenod into in the. future, between the, parties.
6.2 The non-enforcemeaL or other WaiN'C1-,0f.-111)1 provision of this Agreement
shall not be const rtwd as a conLi nu i n L,
, waiver or as a waiver of any other provision of this
Agreement.
6 . 3' Sections 2 and 3 of this Agreement :Shall iiwvive the expiration or
tenuiriation of this Agreement -
6.4 Nolhing in this Agreement is intended to confor any rights or rernedies on
I
any thiI irpar y, including. without limitation, anv provider(s) or groups of providers, or any nuht
I . I -
6
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Resolution No. 2018-119 N.C.S. Page 8
CONTRACT Pt 17-94793
to medical sei-,,iccs for any individual(s) or groups of individuals. Accordingly, there shall be no
third party beneficiary of this AL, ement.
().i Time isol'the essence in this Agreement,
66 Each party hereby represents that the personfs) executing this Agreeniont
on its behalf is duly aL1t1101'iZCJ to do so.
-1, -es� in this Agreenicnt
StiilcAiitiiciritv.Excel.itase.xpi ilyproN,idc!dlier,,In,tiotliiilg
shall be construed to limit, restrict, or modify the DHCS' powers, authorities, and duties under
Federal zinc] State law and rquilaticins.
S. Approval, This Agmoment is of no force and effiect until signed by the parties.
9. 1'erm, This Acreement shall be effective as of July I. 2017 and shall expire as of
December 3 1, 2020 unless terrninaLed earlier by 111LItual attre.ement, of the parties,
I -
SIGNATURES
IN WITNESS WHEREOF, the parties here -to have executed this Agreement, on
the date of the Iasi sipjnziture below.
1'H' CITY OF PETALUMA:
By:
John C. Brown, City Manager
Date:
THE STATE OF CALIFORNIA. DEPARTIMENT OF HEALTH CARE SERVICES:
Byi
Date:
Jennifer Lopez, Acting Division Chief, Capitated Rates DevelolMilent, Division
7
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Resolution No. 2018-119 N.C.S. Page 9