Title
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute amendment No. 2 to the agreement (A-17-287, Board Order A-13598) with Pacific Health Alliance for project administration (“PA”) services for the County of Monterey’s Pilot Project for the Remaining Uninsured, extending the agreement an additional twelve (12) month period (January 1, 2020 through a run out period of December 31, 2020) for a revised full agreement term of August 1, 2017 through December 31, 2020, and adding $400,000 for a revised total agreement amount not to exceed $900,000.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute amendment No. 2 to the agreement (A-17-287, Board Order A-13598) with Pacific Health Alliance for project administration (“PA”) services for the County of Monterey’s Pilot Project for the Remaining Uninsured, extending the agreement an additional twelve (12) month period (January 1, 2020 through a run out period of December 31, 2020) for a revised full agreement term of August 1, 2017 through December 31, 2020, and adding $400,000 for a revised total agreement amount not to exceed $900,000.
SUMMARY/DISCUSSION:
The Affordable Care Act (ACA) was enacted to provide Medicaid (Medi-Cal) and other coverage options through the exchange to many low-income individuals with the goal of decreasing the number of uninsured individuals. However, many Monterey County residents remain uninsured and unable to pay for costly medical care, procedures and prescription medications. Of the uninsured, it is estimated that there are approximately 30,000 to 50,000 adult residents over the age of 18 living in Monterey County without any medical insurance due to their documentation status.
In response to this need, the Board of Supervisors approved an allocation of $500,000 from the general fund in August 2015 establishing the County’s Pilot Project for the Remaining Uninsured to provide limited scope pharmaceuticals, laboratory tests and radiology services. These services were provided by the Health Department’s Federally Qualified look-alike health clinics, which serve designated medically underserved populations under the applicable Scope of Project with HRSA (Health Resources and Services Administration) and by Natividad. The County’s Pilot Project for the Remaining Uninsured was implemented in November 2015 through September 2017 and served approximately 2,005 individuals.
In May 2017, the Board of Supervisors directed staff to proceed with implementation of an expanded Pilot Project allowing for the provision of primary and specialty care ambulatory services for fiscal year (FY) 2017-18 funded by the Natividad Enterprise Fund in the amount of $2 million: $1.8 million for patient care and $200,000 for PA services. On June 27, 2017, the Board of Supervisors approved and authorized the current Agreement with Pacific Health Alliance (PHA) for the County of Monterey’s Pilot Project for the Remaining Uninsured, effective July 1, 2017 through June 30, 2018 to assist with the project management and reporting.
The Pilot Project, named Esperanza Care, became effective October 1, 2017. The enrollment cap of 2,500 individuals was raised to 3,500 by the Board of Supervisors effective April 1, 2018. Amendment 1 continued the agreement through December 31, 2019. Effective July 1, 2019, the per member per month reimbursement rate increases by twenty-five cents ($.25). In addition, amendment 2 extends the term to December 31, 2020, and adds an additional $400,000 to the PA Agreement for a total of $900,000.
Esperanza Care will roll over to FY 2019-20 with the same scope of services with an additional expenditure of $2 million from the Natividad Enterprise Fund. Enrollees in Esperanza Care will be required to re-apply for the Esperanza Care at least annually.
Since the inception, Monterey County will have spent $6.5 million ($500,000 from the general fund and $6 million from the Natividad Enterprise Fund) on Esperanza Care, by the end of FY 2019-20.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this amendment No. 2 as to legal form, and the Auditor-Controller has reviewed and approved as to payment provisions. The amendment No. 2 has also been reviewed and approved by NMC’s Finance Committee on June 27, 2019 and by its Board of Trustees Executive Committee on July 2, 2019.
FINANCING:
The cost for amendment No. 2 is $400,000, which is included in the FY 2019-20 Adopted Budget.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This amendment provides for the smooth transition of the existing Pilot Project for the Remaining Uninsured for FY 2019-20. It offers equitable opportunities for health choices and healthcare which will improve the health and quality of life for Monterey County residents.
__ Economic Development
__ Administration
X Health and Human Services
__ Infrastructure
__ Public Safety
Prepared by: Nancy Majewski, Managed Care Operations Manager, 783-2385
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
PHA PILOT Project Amendment 2
PHA PILOT Project Amendment 1 eff 070118
PHA PILOT Project Agreement eff 080117
Attachments on file with the Clerk of the Board