City of Pensacola Logo
 
Share to Facebook Share to Twitter Bookmark and Share
File #: 2019-52    Version: Name:
Type: Resolution Status: Passed
File created: 8/27/2019 In control: City Council
On agenda: 9/26/2019 Final action: 9/26/2019
Enactment date: 10/3/2019 Enactment #: 2019-52
Title: RESOLUTION NO. 2019-52 - INDIGENT HEALTH CARE SPECIAL ASSESSMENT
Attachments: 1. REVISED RES. NO. 2019-52 CLEAN VERSION, 2. MEMO AND MARKED UP REVISIONS TO RESOLUTION, 3. Resolution No. 2019-52, 4. INDEMNIFICATION & HOLD HARMLESS AGREEMENT BAPTIST HOSPITAL

LEGISLATIVE ACTION ITEM

 

SPONSOR:                         Grover C. Robinson, IV, Mayor

 

SUBJECT:

 

title

RESOLUTION NO. 2019-52 - INDIGENT HEALTH CARE SPECIAL ASSESSMENT                      

end

 

RECOMMENDATION:

 

recommendation

That City Council adopt Resolution No. 2019-52.

 

AN ASSESSMENT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PENSACOLA, FLORIDA, AUTHORIZING, LEVYING, AND IMPOSING A NON-AD VALOREM ASSESSMENT WITHIN THE AREAS OF THE CITY   LIMITS DESCRIBED HEREIN FOR THE PURPOSE OF SUPPORTING THE PROVISION OF CHARITY HEALTH CARE BY THE CITY’S HOSPITALS TO INDIGENT MEMBERS OF THE NORTHWEST FLORIDA COMMUNITY; FINDING AND DETERMINING THAT CERTAIN REAL PROPERTY IS SPECIALLY BENEFITED BY THE INCREASED SUPPORT FOR CHARITY CARE; MAKING CERTAIN OTHER FINDINGS IN RELATION THERETO; ESTABLISHING THE METHOD OF ASSESSING AND COLLECTING THE ASSESSMENT AGAINST THE REAL PROPERTY; SPECIFYING THE MAXIMUM ANNUAL ASSESSMENT AMOUNT AND THE MAXIMUM ASSESSMENT LIEN TO BE LEVIED AGAINST THE SPECIALLY BENEFITED REAL PROPERTY; CONFIRMING THE ASSESSMENT RESOLUTION; PROVIDING FOR CERTAIN OTHER AUTHORIZATIONS AND DELEGATIONS OF AUTHORITY IN RELATION THERETO; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.

end

body                

 

HEARING REQUIRED:  No Hearing Required

 

SUMMARY:

                                          

Representatives from Baptist Hospital, Sacred Heart Hospital, and Select Specialty Hospital have requested that the City consider the imposition of a special assessment on their real property located in the City to increase funding available to reimburse the hospitals for uncompensated charitable health care.  In April 2019, the City adopted Ordinance No. 10-19 to levy a special assessment based on outpatient revenues against properties owned by the hospitals within the city limits.  Because the special assessment was based on outpatient revenues, only properties owned by Baptist Hospital and Sacred Heart Hospital were assessed.  For FY2020, the hospitals have requested that the special assessment be based on inpatient revenues, which will affect properties owned by Baptist Hospital, Sacred Heart Hospital, and Select Specialty Hospital.  In order to levy the requested special assessment for FY2020, the City must repeal and replace Ordinance No. 10-19 to provide for broader language that allows a special assessment to be based on inpatient revenues. Accordingly, the proposed ordinance repeals and replaces Ordinance No. 10-19, providing a mechanism for levying the special assessment based on inpatient revenue on the properties owned by the three hospitals pursuant to their request.

 

There currently is a significant gap in the funds the three hospitals receive from the State of Florida and the federal government for indigent health care versus what they actually expend.   The hospitals have advised that this gap can be decreased through a special assessment on properties within the city limits owned by Baptist Hospital, Sacred Heart Hospital, and Select Specialty Hospital.   The assessment would be imposed as a set percentage of net inpatient service revenues for each hospital property subject to the special assessment.  The hospitals will transmit the assessment in one lump sum to the City, which in turn will forward that same amount to the Agency for Health Care Administration, an agency of the State of Florida.  The State would then use those funds to draw down a federal match of grant dollars equal to approximately 150% of the assessment dollars collected.  The total funds - the assessment amount and the federal grant dollars - then will be remitted to the hospitals by the State. 

 

We anticipate that representatives from each hospital will be in attendance at the Agenda Conference to answer questions regarding the request to the City.

 

PRIOR ACTION:                     

 

April 25, 2019 - City Council adopted Ordinance No. 10-19 and Resolution No. 2019-24, which imposed a special assessment on outpatient revenue on properties owned by Baptist Health Care and Sacred Heart Hospital.

 

FUNDING:                     

 

N/A

 

FINANCIAL IMPACT:

                     

There is no direct financial impact to the City.  The special assessment will generate additional funds, estimated at several million dollars, from the federal government to pay for uncompensated care to indigent citizens.

 

CITY ATTORNEY REVIEW:    Yes

 8/27/2019

   

STAFF CONTACT:

 

Christopher L. Holley, City Administrator

Richard Barker Jr., Chief Financial Officer

 

ATTACHMENTS:

 

1)                     Resolution No. 2019-52

 

PRESENTATION:     No   end