City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 3, 2020
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of the release of $490,575 in FY 2020 Contingent Reserve Funding to fund the INOVA Hospital Contribution.
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ISSUE: Consideration of the release of $490,575 in FY 2020 Contingent Reserve Funding to fund the City's annual contribution to INOVA Hospital.
RECOMMENDATION: That the City Council release $490,575 in FY 2020 Contingent Reserve funding for the INOVA Hospital contribution.
BACKGROUND: The City has provided a financial contribution to INOVA Hospital annually for decades. 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 $1 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. During the FY 2020 budget process, City Council raised the question of whether recent changes to expand Medicaid coverage would impact revenues earned by INOVA and therefore possibly lessen the need for this contribution by the City. During the FY 2020 add/delete process, Council placed half of the City's annual contribution into contingent reserve ($490,575) pending a Medicaid impact analysis by INOVA and a subsequent review and recommendation by City staff.
DISCUSSION: In the fall of 2019, INOVA provided City staff with a Medicaid impact analysis. Staff conversed with INOVA over the course of four months and evaluated this information. INOVA's analysis demonstrated that they ultimately did not see a reduction in the need for this funding. While Medicaid coverage was expanded in some areas, the January 2019 Medicaid expansion did not specifically apply to pregnant wo...
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