City of Alexandria, Virginia
MEMORANDUM
DATE: MAY 27, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: JAMES F. PARAJON, CITY MANAGER
DOCKET TITLE:
TITLE
Consideration of a Request to Release Fiscal Year 2025 Contingent Reserve Funds of $490,575 Allocated for Inova Alexandria Hospital
BODY
ISSUE: City Council consideration to release $490,575 in FY 2025 contingent reserve funds for Inova Alexandria Hospital.
RECOMMENDATION: City Council approve the release of contingent funds allocated in the FY 2025 budget process for Inova Alexandria Hospital.
BACKGROUND: In the FY 2025 budget process, the City Council placed funding for Inova Alexandria Hospital in contingent reserve pending provision by Inova staff of a report on the impact of its service to Medicaid recipients and uninsured patients in Alexandria.
DISCUSSION: In its April 2025 Report to the City Manager (Attachment 1), Inova Hospital summarized the number, types, and financial impact of Medicaid and uninsured patients, especially within the obstetrics (OB) patient community, that received services from Inova Alexandria Hospital for 2024 compared to 2023.
In summary, Inova reports the following year-over-year increases (2024 vs 2023):
• 6.4% increase (104 patients) in the number of patients who received specific obstetric services (Inpatient, Observation, and Outpatient) (1,727 in 2024 to 1,623 in 2023)
• 5.8% increase (295 patients) in the number of overall patients who received obstetric related care (5,353 in 2024 to 5,058 patients in 2023)
• 5% increase (72 patients) in the number of Medicaid patients who received obstetric care (1,606 in 2024 to 1,534 in 2023)
• 36% increase (32 patients) in services provided to patients who were uninsured or receiving financial assistance (121 patients in 2024 to 89 in 2023)
Inova reports that the combined financial impact of providing OB and neonatal care for low-income and uninsured patients is approximately $3.4 million in unreimbursed care. According to Inova, Medicaid and uninsured OB patients represent nearly one-third of all Inova Alexandria obstetrics volume. The report notes: “The City’s financial commitment helps offset unreimbursed cost directly relating to the care of OB and neonatal services, and to indirect costs associated with ensuring access to physician coverage specific to tens of hundreds of medically indigent women in Alexandria.”
FISCAL IMPACT: Release of $490,575 from contingent reserve funding for Inova Alexandria Hospital.
ATTACHMENTS:
1. Inova Alexandria Hospital Report to the City Manager - April 2025
2. Inova Community Report 2024
STAFF:
Yon Lambert, Deputy City Manager