City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 8, 2017
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Memorandum of Agreement between INOVA Alexandria Hospital and the City of Alexandria for FY 2017 and FY 2018.
BODY
ISSUE: Consideration of a Memorandum of Agreement between INOVA Alexandria Hospital and the City of Alexandria.
RECOMMENDATIONS: That City Council:
(1) Approve the attached Memorandum of Agreement between INOVA Alexandria
Hospital and the City of Alexandria; and
(2) Authorize the City Manager to sign the Memorandum of Agreement (MOA).
BACKGROUND: The City’s newly adopted Strategic Plan includes the Healthy Residents section that says: in 2022, Alexandria ensures equal and ready access to opportunities that promote mental and physical well-being, and a happy, active lifestyle. Alexandria will work to reduce inequities in the health system, increase access to care for all residents and provide a system of support for residents with behavioral needs.
For decades, INOVA Alexandria Hospital (IAH) a non-profit organization has been a strong partner in the health delivery system in the City of Alexandria. In order to support the work of IAH in creating access to care for the City’s indigent population, obstetrics and gynecology services and other in-kind services to City agencies, the City has historically given the hospital an annual contribution of approximately $1 million to help offset bad debt from indigent patient care. The Memorandum of Agreement (MOA) will serve as a formal written agreement on services provided by IAH to residents in need, regardless of their ability to pay. Previously, there was no formal written agreement.
DISCUSSION: Based on the City Council approved budget, the City of Alexandria is providing supplemental funding to INOVA Alexandria Hospital in FY 2017 in the amount of $1,011,150. The MOA identifies these funds as paying to offset charity care to the medically indigent, and pregnant Alexandria residents by providing pre-natal care starting at 13 weeks to support expectant mothers and increase the probability of the birth of healthy babies. Healthier babies lead to healthier children and then healthier adults. In an annual service report to be provided to the City, IAH will provide a statement of the dollar value, and the types and numbers of patients for indigent care provided, as well as similar information on patient service provided where bad debt occurred, as well as the amount of those bad debts. The agreement is for FY 2017 (the current fiscal year and is retroactive back to July 1, 2016 which was the start of FY 2017).
FISCAL IMPACT: The City shall pay IAH an annual amount due and owing for the approved expenditures not to exceed a maximum amount budgeted of $1,011,150 for FY 2017. For
FY 2018 and beyond the amount paid may vary based on the amount included in the City’s adopted budget for the IAH payment. The funds are paid to IAH in equal quarterly payments.
ATTACHMENT: Memorandum of Agreement between City of Alexandria and INOVA
Alexandria Hospital
STAFF:
Debra R. Collins, Deputy City Manager
Susan T. Carroll, Chief Executive Officer, Inova Alexandria Hospital