The URL can be used to link to this page

Home My WebLink AboutRes2014-024 Sponsored by: Hunt p 1.• CITY OF SEWARD, ALASKA RESOLUTION 2014-024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING AMENDMENT NO. 1 TO THE MANAGEMENT AND OPERATING AGREEMENT BETWEEN THE CITY OF SEWARD AND PROVIDENCE HEALTH & SERVICES TO ADDRESS THE REMOVAL OF THE PRIMARY CARE CLINIC FROM PROVIDENCE'S SCOPE OF WORK, MODIFY SPACE USE, SEEK COST SAVINGS, AND AGREE TO A FUTURE REDUCTION IN THE ANNUAL FIXED PERIODIC FEE WHEREAS, the City owns real property consisting of land, a hospital building and Seward Mountain Haven, a long-term care facility, together with other improvements thereon; and WHEREAS, Providence Health & Services Alaska ("Providence") and the City of Seward ("City") entered into a management and operating agreement ("Agreement") in April, 2003, when Providence began operating the collocated hospital and long-term care facilities on the City's behalf, and the current Agreement between Providence and the City became effective June 3, 2013 and expires June 2, 2018; and WHEREAS, the City of Seward and the Seward Community Health Center, Inc. ("SCHC") are co-applicants recently awarded designation as a federally qualified health center under Section 330 of the Public Health Service Act, with the purpose of operating a primary care health clinic in Seward to replace the existing Providence primary care clinic beginning February 15, 2014; and WHEREAS, as a result of carving off the primary care clinic operations currently managed by Providence, it is necessary to modify the Agreement to reflect: 1) a modification in the scope of services to eliminate Providence's operation of a primary care clinic; 2) commitment by the parties to cooperate in the sharing of space within the building currently housing the hospital/emergency room/primary care clinic; 3) a requirement for the parties to seek cost efficiencies and to preserve and strengthen the local partnership which formed the new health clinic with goals of improving healthcare in the community through expanded access and fostering cooperation rather than competition among healthcare providers; and 4) acknowledging the need for a future amendment to the Agreement aimed at reducing the Annual Fixed Periodic Fee to reflect the reduced scope of services and associated direct and indirect costs associated with the modification in building space, operating costs, and reduced services. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: CITY OF SEWARD, ALASKA RESOLUTION 2014-024 mai Section 1. The City Council hereby authorizes the City Manager to execute and deliver Amendment No. 1 to the Management and Operating Agreement between the City of Seward, Alaska and Providence Health & Services — Washington, dba Providence Health & Services Alaska, as presented at this meeting. Section 2. This resolution shall take effect 30 days following its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10th day of March, 2014. THE CITY OF SEWARD, ALASKA 9-eeV3 ,Kean Bardarson, Mayor uI AYES: Keil, Casagranda, Terry, Squires, Butts, Darling, Bardarson NOES: None ABSENT: None ABSTAIN: None ATTEST: .1-4/Nar _ J.1 anna Ki figr MC ty Clerk (City Seal) t.,,,•%.4 OF St:/-17. 7 • o % (•■• • • ; 6 la : Council Agenda Statement (pi; Meeting Date: March 10, 2014 w Through: James Hunt, City Manager �xxn� Kristin Erchinger, Finance Director Agenda Item: Amendment No. I to Providence and City Management&Operating Agreement BACKGROUND &JUSTIFICATION Providence Health and Services, Alaska("Providence") and the City of Seward("City") are parties to a management and operating agreement ("Agreement") which became effective June 3, 2013 and which will expire June 2, 2018. Under the current Agreement,Providence manages and operates the hospital,emergency room,primary care clinic,and long-term care facility. Ruccrt|y, the City of Seward and Seward Community Health Center, Inc. ("SCHC") were awarded co-applicant designation as a federally qualified health center ("FQHC") under Section 330 of the Public Health Service Act, with the intent to assume responsibility for operating a primary care health clinic in Seward to replace the existing Providence primary care clinic beginning February 15, 2014. Providence,the City,and SCHC have been partnering to pursue qualification for a federally qualified health center in Seward,as that model of care is considered to be more cost-effective and better able to expand access to primary health care for uninsured and underinsured individuals. In order to memorialize the impact that this change will have on the Agreement between the City and Providence,Amendment No. I is being proposed. This Amendment will modify the scope of services in the Agreement to eliminate Providence's operation of the primary health care clinic. It will also address the sharing of space between Providence and SCHC within the hospital/clinic building, as will a separate Partnership Agreement and a separate License Agreement between the two Parties, with specific terms related to the sharing of utility costs,facility maintenance and repair costs, etc. This Amendment between the City and Providence encourages cost efficiencies and preserves and strengthens partnerships in order to expand access to healthcare for Seward-area residents. It also acknowledges the need for a future amendment to the Agreement to reduce the Annual Fixed Periodic Fee("AFPF")to reflect the change in scope of services and the associated direct and indirect costs of modification in building mpaoc, operating costs, and reduced services. INTENT: The intent of this action is to clarify that Providence will no longer provide primary care clinic services in the hospital/clinic building, but will wo with the City and the SCHC to achieve cost efficiencies. The action also addresses hudo�ufnpucc,r�duocd/�FPF,m�engtbeningPudoembipu,and insurance provisions. The u�uobndrodUoo sharing and ]Operating Agreement the dnoon�on1that vvi}lhc executed by the city manager. It v�rsiounf[bc�8unu��ruun�o p� n� � is provided only in order to show the changes b twccn the existing agreement, and the agreement as amended. The document to be executed is Amendment No. 1. ' --- Yes No N/A CONSISTENCY CHECKLIST: Comprehensive Plan (document source here):p. /3, 27, 56 X Strategic Plan (document source here):p. 20 X Other(list): ATTORNEY REVIEW: X Yes No FISCAL NOTE: The fiscal impact to the residents of Seward,of this new model of primary health care is not fully known. However,the financial performance of Providence Seward Medical&Care Center is expected to strengthen,given that the clinic has operated at a financial loss in recent years, and that there is expected to be a reduction in direct costs as well as AFPF. The FQHC clinic will benefit from expected annual federal grant funding in the amount of$650,000 aimed at helping to subsidize healthcare for uninsured and under-insured community members. The clinic is eventually expected to qualify for federal payment of medical malpractice insurance coverage and federal loan repayment for medical providers. For patients, the cost of care is expected to be lower, access to subsidized care is expected to increase access to primary health care for those without insurance,and reimbursement for Medicare/Medicaid patients is expected to be higher than in other models of care. Finance Department:wvc4°A ) RECOMMENDATION: Seward City Council approve Resolution 2014- authorizing Amendment No. 1 to the Management and Operating Agreement between Providence Health & Services Alaska and the City of Seward.