Cook County Hospital Board Must Update Strategic Plans To Meet Federal & State Changes in Medicaid Reimbursement

Cook County Health & Hospital Systems Board Meeting - June 30, 2017    

Significant Decisions:
Mr. Hammock was reelected Chairman and Mr. Butler reelected Vice-Chairman of the Board. Mr. Bob Ryder is new Board Member.

Significant Topics Discussed: 
County Care (Managed Care): 

• Enrollment at 68.9% is below the 70th percentile target. Use of County Care in May 2017 was $88.3 million; budget is $132 million. 
• CCHHS has submitted its proposal in response to an RFP issued by the Illinois Department of Healthcare and Family Services to revamp its Medicaid Managed Care Program. However oral presentations have been pushed back from June to July. Stephen Glass, Managed Care Executive Director believes they will have one of the successful proposals.

Finance:

• At the year’s midpoint, income to budget is off by $60 million. YTD Loss of net income was $51,495. Key drivers of costs are the pharmacy (increasing cost of generic drug and single-source brand for treatment of certain diseases) and professional (overtime). 
• Through end of April, $254 million was spent outside of the CountyCare system. Visits to all departments were significantly lower than target. 
• As the 2018 budget will require significant increases in salaries, capital improvement, and equipment, the Committee has developed a comprehensive cost-saving plan across all departments in the system.

Quality & Patient Safety: 

• Audit by the Joint Commission on Hospital Accreditation was successful.

Comments on Strategic Plan:

• Dr. Shannon commented that if the Illinois General Assembly does not pass a budget, this would cause a significant impact on the System’s Strategic Plan.
• In addition, the current efforts to change the American Affordable Care Act would decrease the federal match for Medicaid by 35%. If the state is required to fund 90% of Medicaid, the state won’t be able to participate in Medicaid expansion. In this case, the System will pursue a policy change. Since Illinois law states Cook County Health & Hospital System has the right to operate CountyCare, the strategy is to make CountyCare the managed-care plan of choice. 

Observers: Bill Edmundson and Jeanne Mayer                           Meeting Length - 3 hours