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Cook County Health Board Approves $3.3B  Budget For 2021 but...…

9/22/2020

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 Cook County Health Special Board Meeting - September 11, 2020

After one hour of testimony and four hours of discussion, the Cook County Health Board approved a budget of $3.3 billion for 2021.  The budget for 2020 was $2.8 billion.  However, along with the approved budget, it also voted 6-4 to add an amendment asking for an additional $23 million which equates to the "indirect" costs of CC Correctional and Public Health Departments.  Interim CEO Carey and Interim Chief Business Officer Gibson were asked to ASAP identify what services, staff, etc. would be restored if the $23 million was granted.

Hours were spent in discussion with a majority of board members stating that they wanted to have more early involvement in setting budget priorities.   The Board’s Vice-Chair made the following points:
  • The budget process is too reactive and needs to be more proactive.
  • The System needs to explain what services cannot be performed because of revenue shortfalls.
  • The System needs to articulate who is its targeted population.

Interim CEO Carey noted that there were over 100 public speakers during the two budget hearings and the Sept. 11, 2020 special board meeting to approve the budget.  Two programs eliminated in the 2021 budget generated a significant amount of testimony:
  • Health Care service at the Morton East High School.  Carey indicated the System believes it can find a replacement provider, but Directors want more feedback on who or what would be the replacement.
  • Children's Advocacy Center.  In 2020, the budget was $500,000 for mental and physical health services.  The Center offers many other services that will continue, and Carey said the System is looking into alternatives.  Director Deer who is both a Director on the CCH Board and an elected Cook County Commissioner expressed concern, and used this as an example of why the Directors should be involved earlier in the discussions of what will continue, be cut, or added when developing the annual budget.

As the meeting closed, several members of the board restated the following points:
  •  More revenue is needed to fulfill the System’s mission and mandates.
  •  The System needs to develop a robust Regional Planning process which must include a strategic discussion on charity care.

For those wishing to have more information about the budget categories and amounts, the 2021 proposed budget can be found HERE.

Diane Edmundson - Observer
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Cook County Health Hires AArete Consulting to Help with Financial Strategy

3/3/2020

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Cook County Health (CCH) Board Meeting - February 28, 2020

Board Reports and Discussion:
  • Public speaker- one person representing a vendor requested more timely payment.
  • Staffing - 750 of the positions left vacant have been deleted from the budget. The board discussed the impact on care from staff cuts. Positions are only being cut through attrition, no lay offs planned.
  • CountyCare membership is up. A partnership with the Chicago Public Schools has helped drive students to join CountyCare. The automatic assignment of patients to CountyCare will now be 50%.. There is a problem in payments to CountyCare and other vendors.
  • The Audit and Compliance Committee shared results from the outside audit on coding. They found that there is improvement since the last audit but there is still a significant problem with coding and it is a whole house issue involving multiple people and departments.
The Finance Committee stated that there are multiple problems with income streams.
  • ​CountyCare is waiting for payment of $350 million dollars. The claims are adjudicated but not paid. Uncompensated care is an increasing problem.
  • Robert Sumter will be the interim CFO. 
  • There were changes made to the organizational chart for the area.
  • It is felt that there is a significant problem in cash flow, including a lack of clarity and communication with Cook County board.  Need to set up more meetings with the Cook County Commissioners.
  • Better integration is needed between the accrual-based accounting of Cook County Health  and the modified cash based accounting used by the Cook County Board.
  • Bob Clark, a CPA from AArete Consulting,  will be hired to help with financial strategy and bring in a clear set of eyes. He is highly experienced in health care entities.
  • Contracts and procurement items were voted on.

West Side United presented an overview of their plans. Six hospitals on the west side have joined together to address social determinants of health. The life expectancy on the west side is 16 years shorter than in the Loop that is just a couple miles away. They hope to halve the difference by 2030. They just completed a 1000-day plan and will be starting the next 1000-day strategic plan. They are convening with the community on March 5, 2020.

Dr. Sharon Welbel, epidemiologist at Stroger and Dr. Kiran Joshi of CC department of public health presented a COVID-19 update.  Cook County has testing capabilities and does not need to use CDC kits. CCH has been actively preparing for an influx of cases and have implemented a rapid identification plan and set aside 2 ER rooms  for suspected COVID-19 cases that are not in proximity to other rooms. Over 1000 healthcare workers have already been trained.

Board President Hammock report:
  • The CCH Board has been working closely with Cook County Board. 
  • Otis Story has been appointed to the CCH board by President Preckwinkle to help educate the Cook County Commissioners on health issues.
  • The search for a new CEO has started. A proposed position profile for the CEO was shared and discussed.  It will be sent to the CC board for use in hiring the CEO.

Items to Watch for in the Future:
  • Many changes are anticipated to correct financial problems.

Observer- Lisa Slankard      Meeting Length: 2 hours 40 minutes then meeting went to closed session                                                                 
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Outgoing Cook County Health CEO Begins Strategic Discussion On Self-Pay For Medical Services

1/2/2020

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Cook County Health Board Meeting - December 20, 2019

Following up on the 2020 budget deliberations and the very real issue of the increased cost for charity care, Dr. Shannon, presiding at his final board meeting before leaving the system, led a discussion on “self-pay” and how other major public hospitals across the country handle it.  

For purposes of discussion, self-pay is used in place of charity care.  There was a 17% increase in year-over-year charges from FY 2018 to 2019 from $158 million to $185 million.  The percentage of self-pay was 1.2% in 2018 but dropped to .4% in 2019.  The largest service increases are:  Radiation Therapy [75%], Family Practice [50%], Gynecology [33%] and Surgery [29%].   

Comparisons of NY Health & Hospitals; Jackson Memorial [N. Texas & Oklahoma]; Parkland [Dallas]; and Grady [Atlanta]; self-pay plans were passed to the Board and include: 
  • Sliding scale fees based on Federal Poverty Levels
  • All or a portion of the patient responsibility paid in advance
  • Services covered limited to emergent [emergency]
  • Six months residency required to qualify for charity care
Dr. Shannon listed several strategic considerations:
  • Continuous improvement in revenue cycle process
  • Refine and update self-pay policies and procedures to include collection of co-pays from insured or payment for others [self-pay].
  • Refine and update policies on taking self-pay transfers from other healthcare facilities
  • Build-out point of service collections/payment capacity including:
                     1. Online payments as part of patient portal improvements
                    2. Kiosks with payment options
                    3. Training staff to collect/swipe cash or credit/debit cards
This would be a major change in policy for CCH as well as culture.  Several board members questioned whether the County Commissioners and President would accept this concept.  President Hammock responded that the System should provide an analysis and recommendations so that both it and the County elected officials have a base to work from including possibly deciding to provide more revenue to CCH to handle charity care.

Laurence Msall, President of the Civic Federation stated in public comments “The Civic Federation remains adamant in our support of this [volunteer] board…..”   He also recommended that the System steer clear of initiatives that do not fit with its core strategy, but did not state what they might be.

Observer - Diane Edmundson                                            Meeting Length:  2 ½ Hrs. 
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Cook County Health Approves Preliminary 2020 Strategic Plan

7/30/2019

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 Cook County Health (CCH) Board of Directors Meeting - July 26, 2019          

Board Decisions:
The board unanimously approved the preliminary 2020 strategic plan, which will be available for public input later this summer and presented to the Cook County Board in September. 
The plan calls for:
  • Increased surgeries, emergency visits, primary care, specialty care, and deliveries;
  • 5% cost savings; and
  • Sustaining CountyCare membership,
Challenges to the system include:
  • Salary increases, 
  • Increased cost of equipment and supplies;
  • Revenue loss in CountyCare;
  • Consolidation of hospitals
  • A $52m pension requirement. 
CEO Dr. Jay Shannon pointed out that CCH needs to attract and retain paying patients  When CCH loses CountyCare patients, there is a 53% chance they will present for charity care, which consumes 25% of CCH revenue.

Committee Reports.
  • Human Resources: 7,265 total positions, 1,151 vacancies, 830 positions in process, 364 external positions filled. Hiring for coders and billers difficult; not enough qualified candidates.  
  • Managed Care: CountyCare membership 316,730 as of May 2019, 31.6% of market share. Home visits to high risk patients to encourage them to use CountyCare. Commissioner Sidney expressed concern that patients were being “auto-assigned” to health care plans without patient input.
  • Quality and Patient Safety: CCH has a 16% readmission rate (near national average), attributed to hypertension and kidney disease; 8 falls with injury per month average; no hospital acquired conditions in last 3 months, but some infections.  74% willing to recommend Provident, 69% to recommend Stroger.
  • Finance: Budget 23%  below target due to increased (1) charity care, (2) clinical activity and (3) pharmacy costs.  “We need to be better compensated for care to the uninsured,” CEO Shannon commented.  Finance Chair  Robert Reiter pointed out that CCH provides half of the charity care countywide; other hospitals are providing less.  Commissioner Mike Koetting emphasized the “centrality of making sure we are the provider of choice; otherwise the percentage of charity care will continue to grow.”  45% of CCH patients are now uninsured. 51% of patients identify as African American; 32% identify as Latino.
CCH Board Chair Hill Hammock announced that the Deloitte accounting firm will examine CCH’s financial books and accounting principles, with a response from CCH by the end of August.

Observed by:   Linda Christianson                                      Meeting Length: 3 hours
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Cook County Health Nearing Completion of 2020-22 Strategic Plan

6/15/2019

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Cook County Health (CCH) Board Meeting - May 31, 2019

What did the Board discuss:
  • The 2020-22 planning process started in the Fall of 2018.  After months of considering key issues, industry trends, looking at future needs, and seeking input through community town halls and surveys, the Cook County Health (CCH) Strategic Plan 2020-22 is nearing completion.
  • CCH recognized its nurses May 6 - 12 during the annual National Nurses Week.
  • CountyCare, the CCH Medicaid managed care organization, numbers were slightly down again as of May 5, 2019 to 316,831 members.  The Illinois spring legislation addressed problems with Illinois Medicaid: reducing  lapse of care when benefits are terminated, and establishing an easier process for initial Medicaid applications and redetermination for individuals to stay on Medicaid.  CountyCare will benefit from these improvements.
  • CCH committed $1 million toward the Flexible Housing Pool- a partnership that has the goal of housing  vulnerable homeless and connecting them with support services.  Overall this support is a cost effective way to help them improve their lives and health.
  • The Board acknowledged the Cook County Health Foundation.  This foundation partners with CCH giving financial support to further the health systems mission of health care to residents regardless of their ability to pay.  The foundation increases awareness of CCH and raises money to help the health system build for the future and remain a leader in public health.
  • A May presentation "Diabetes Update" explained that over time elevated blood sugar (glucose) levels damages both large and small blood vessels.  This damage can lead to complications that affect the whole body.  A CCH study showed that a gain in patients' knowledge of diabetes management is associated with better blood sugar control.
  • CCH contracted with an architectural consulting service to review the physical spaces of its out-patient clinics.  The goal is a positive patient experience in waiting areas and a good experience when being efficiently moved through clinic areas.
  • The Board approved a furniture contract for new clinics in  Hillside, North Riverside, and Blue Island.

​ Observer - Michele Niccolai                                          Meeting Length:   3 hours
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Director Mary Richardson-Lowry Elected Vice Chair of Cook County Health Board

4/7/2019

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Cook County Health (CCH) Board Meeting
March 29, 2019                         

Director Mary Richardson-Lowry was elected Vice Chair of the Board replacing the long serving Commissioner Butler who resigned from the Board in 2018.  Director Richardson-Lowry has been a member of the Hospital Board since 2015, Chairing the Human Resources Committee.  A partner in the Chicago office of Mayer Brown law firm, her illustrious career includes having served as Commissioner of the Chicago Department of Buildings, Past President, Chicago Board of Education and Metropolitan Family Services Board member. 

What did the Board Discuss?
  • Using locally sourced, market-savvy investigators, 2 million dollars in overpayments to providers in the 4th Quarter of last year were identified, only a small fraction has been recovered thus far, pending the appeals process. 
  • Net operating loss exceeds budgeted loss of $72 million by $35 million in first 2 months of fiscal year due to persistent excess external claims expense paid to non-CCH network providers.  Increasing use of CCH facilities is the challenge with below budgeted volumes this year of primary & specialty care, surgical cases and deliveries. Director Reiter said the financials are comparable to previous years.
  • Willingness to recommend Stroger and Provident Hospital in the bottom 40% of hospitals.
  • 45% uninsured system-wide, composed of 32% African-American, 47% Hispanic, 4% Asian and approximately 17% White.  Director Suleiman Gonzalez requested uninsured data based on language spoken to capture data on the numerous Polish and Middle Eastern groups.
  • Strategic Plan updates:
  • Dr. Fegan reported on the medical staff demographics (PowerPoint on CCHHS website), challenges of a unionized medical staff which has a lack of job title specificity, incentive structure and slow implementation of use of Relative Value Units, the industry standard measuring “work”. High value specialists are not retained. Board discussed hybrid system for physicians of unionized with incentives.
  • E-consult communication of physician with patients has been implemented with positive patient response.

Items to Watch for in the Future
  • CEO Shannon said the new merger of Healthcare companies Centene and WellCare will result in the largest Medicaid insurer nationally with 12 million beneficiaries and anticipated major savings in their cost of care provision which will threaten CountyCare’s current dominant position in the Cook County Medicaid market.

Observed by Barbara Hayes and Susan Kern                       Meeting Length:  3 hours 15 minutes
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