City of Alexandria, Virginia
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MEMORANDUM
DATE: DECEMBER 5, 2023
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KENDEL TAYLOR, INTERIM DEPUTY CITY MANAGER
DOCKET TITLE:
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Consideration of the Release of $490,575 in FY 2023 Contingent Reserve Funding to Fund the INOVA Hospital Contribution.
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ISSUE: Consideration of the release of $490,575 in FY 2023 Contingent Reserve Funding to fund the City's annual contribution to INOVA Hospital.
RECOMMENDATION: That the City Council release $490,575 in FY 2023 Contingent Reserve funding for the INOVA Hospital contribution.
BACKGROUND: The City has provided a financial contribution to INOVA Hospital annually for several years. This contribution was formalized through a Memorandum of Agreement (MOA) between the City of Alexandria and INOVA Alexandria Hospital in 2017. This contribution of about $0.9 million is used by INOVA to cover the cost of providing obstetric and prenatal care to women who are uninsured and underinsured and not able to cover the costs of this care. In the FY 2022 budget, half of the City's annual contribution was placed into contingent reserve ($490,575). The FY 2023 budget maintained this approach with $490,575 allocated directly to INOVA Alexandria Hospital and the remaining $490,575 allocated in contingent reserves. In FY 2024, a portion of this ($79,250) was allocated in June to fund a bed finder position in the Department of Community and Human Services. The remainder is included in Non-Departmental as an FY 2024 Contingent Reserve.
DISCUSSION: In September 2023, INOVA provided a report to the City Manager (Attachment 1) summarizing the financial impact of uninsured or underinsured obstetric (OB) patients that received services from Inova Alexandria Hospital for 2022 compared to 2021. Details of these impacts are outlined in the atta...
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