Cook County Hospital Board Approves Preliminary $2.9B FY2019 Budget

Cook County Health and Hospitals System (CCHHS) Board Meeting - August 31, 2018  

What did the Board Discuss:

In discussion of the proposed CCHHS budget, CEO Dr. Jay Shannon identified these key focus areas:

• Improvement in behavioral health;
• Long overdue equipment and facility improvements;
• Improvement in the system’s financial position;
• System’s continuance as the state’s largest managed care organization;
• Continuing to reduce reliance on local taxpayers while taking on pension costs. 

The budget anticipates:

• $182.2m in CountyCare revenue;
• $132m BIPA and $157m DSH (federal flow-through payments); 
• $494m in patient fees due in part to a 5-6% increase in surgeries, ER visits, primary care visits, specialty care,and an 11% increase in deliveries. 

Other assumptions:

• Uncompensated care will total $292m in charity care and $213m in bad debt, unchanged from 2018. 
• Full Time Employees (FTEs) will total 7,138. 
• Insured patients will account for 61%, while 39% of patients will be uninsured.. 
• A move of out patient services from the Oak Forest campus by the end of the first quarter of 2019 to better-located facilities in the south suburbs. 
• The Cook County local tax allocation is projected at $102m, 3% of the system’s operating revenue.

With the approval of the CCHHS Board the budget is now slated for review and approval by the Cook County Board on September 12.

Committee Reports:

• Human Resources: currently 870 vacancies; 94 days to hire, down from 203 in 2014; 424 vacancies filled so far in 2018.  New employment policies allow CEO to make final determination of salary and of discipline policy.
• Managed Care: total CountyCare members 335,000 of whom 53,555 are served by CCHHS clinics (16%).  The 2019 budget anticipates an enrollment increase to 345,000.  CountyCare is already the state’s largest managed care organization, with the fewest complaints.
• Quality and Patient Safety: 70% of patients would recommend Stroger Hospital; 63% of surgeries start on time; 84% rated ACHN clinics as clean.
• Finance: 34 days of cash on hand (goal is 60); overtime totals 7.6%; the physical plant is 24.4 years old (goal is 10.7).  Bills spend 97 days in Accounts Receivable, down from 125 in 12/17.  22% of initial claims are denied.

To Watch For: Dr. Shannon announced that the ribbon-cutting for the new clinic/admin building will take place October 29.

Observer - Linda Christianson                                              Meeting Length:  3 hours