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HomeMy WebLinkAboutRes2013-101 Sponsored by: Hunt CITY OF SEWARD, ALASKA Imp RESOLUTION 2013-101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING EXPENDITURES IN AN AMOUNT NOT TO EXCEED $150,000 TO REMODEL THE HOSPITAL BUILDING TO IMPROVE PATIENT FLOW FOR CLINIC PATIENTS AND TO PREPARE FOR OPERATION AS A COMMUNITY HEALTH CENTER, AND APPROPRIATING FUNDS WHEREAS,the Seward Community Health Center(SCHC)Board and the City of Seward are receiving designation as a federally qualified health center,to improve affordability and access to primary health care in Seward; and WHEREAS,the community's primary care clinic is presently housed in the same building as the hospital and emergency room,with all three facilities currently managed and operated by a single entity doing business as Providence Seward Medical Center (PSMC); and WHEREAS, under a proposed new model of primary health care in Seward, the Seward Community Health Center will replace the clinic operated by PSMC, utilizing the existing clinic space within the hospital building,thereby necessitating a separation of the physical space of the two operating entities (PSMC and SCHC); and WHEREAS, utilizing an Affordable Care Act Planning Grant funded by the Health Resources and Services Administration, the SCHC Board hired a consulting firm, Guidian Healthcare Consulting,-- with expertise in facility and operational planning -- to conduct an operational assessment and efficiency study(Study)of the existing hospital and clinic space,and to make recommendations to convert the existing clinic to a federally qualified health center; and WHEREAS,the Study evaluated current clinical operations,operational compliance with the federal program requirements for an FQHC, and the existing facility floor plan, and developed an inventory of existing programs,services,and space utilization,resulting in recommendations on how clinical operations could be made more efficient through better utilization of clinical space. The resulting Space Program details the facility size and the types and size of spaces that the clinic would need to develop in order to comply with FQHC program requirements and improve current clinic patient flow and space efficiency; and WHEREAS,the City,PSMC,and the SCHC Board will develop a joint plan to modify clinic space to improve facility space utilization,and will likely pursue a design/build contract to have the work completed prior to the hospital's busy summer season; and WHEREAS,the contract for design/build will require Council approval and the final design concept will be brought before Council prior to commencement of building modifications,given that CITY OF SEWARD, ALASKA RESOLUTION 2013-101 the facility is owned by the City and modifications to the facility exceeding$50,000 require Council approval; and WHEREAS, in the first year of operation, a community health center facility can seek to utilize $150,000 of the available $775,000 in federal grant funds toward capital improvements. However, this would reduce the grant funds available for operations by $150,000, and would also entitle the federal government to an ownership interest in their capital investments in the facility. To avoid that issue,the administration recommends that the City fund the modifications,and utilize the entire federal grant funds, when received, for the first year of operations. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The amount of$150,000 is hereby appropriated from the Hospital Enterprise Fund undesignated reserves account no. 801-0000-3050 to the Hospital Building Expense account no. 801-8010-5910, for the purpose of funding clinic modifications to the PSMC facility. Section 2. This resolution shall take effect immediately upon its adoption. 1.4 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12'1' day of November, 2013. THE CITY OF SEWARD ALASKA /C■kMding J an Bardarson, Mayor AYES: Keil, Shafer, Casagranda, Terry, Squires, Bardarson NOES: None ABSENT: None ABSTAIN: None VACANT: One wri CITY OF SEWARD, ALASKA RESOLUTION 2013-101 ATTEST: J.Fianna Ki * MC C ty Clerk (City Seal) SZS • %. FI ® M • ti' y • ,��vraam.sy4% COUNCIL AGENDA STATEMENT Meeting Date: November 12, 2013 ' of sell" From: James Hunt, City Manager > ^ 4 I/) Agenda Item: Funding for Clinic Space Remodel �qS►��-( BACKGROUND&JUSTIFICATION: The Seward Community Health Center(SCHC) Board (Board) utilized an Affordable Care Act Planning Grant funded by the Health Resources and Services Administration to hire a consulting firm with expertise in facility and operational planning for healthcare facilities. This grant was passed through the City to the SCHC in the amount of$80,000, and a portion of the grant was utilized for the study. The purpose of the project was to assess clinical operations at Providence Seward Medical Center, identify opportunities for operational improvement and efficiencies, and determine which operational and space allocation changes would be necessary to convert existing clinic operations to a federally qualified health center(FQHC). Currently, the community's primary care clinic, emergency room(ER), and hospital are all housed in the same building. The configuration of the building is intended to meet the challenges associated with sharing staff among the three different functions. Under a new proposed model of primary health care, the existing clinic would be replaced by a community health center operated by the SCHC, necessitating a better separation of clinical operations from the hospital and ER space. This separation of services provides a good opportunity to improve patient flow and space utilization, and requires a minor remodel to the building. Guidian Healthcare Consulting conducted an operational and space utilization assessment and recommended changes in both clinic operations and physical space configuration, to comply with the federal program requirements for a FQHC. The recommendation to remodel the physical space details the types and size of spaces needed by the new clinic, and suggests ways to reconfigure space that benefits both the hospital and the clinic. These changes represent improvements to patient flow and provider offices, as well as other space reallocations which will benefit the facility regardless of whether a new clinic is established. The Board requests $150,000 to facilitate a remodel of the clinic space. The administration recommends utilization of City funds for the project rather than federal grant funds. If federal funds are used for the project, the project must await the award of FQHC status and the federal government retains an ownership interest in their investment in the building. Further, federal funds used in the first year of the grant funding for an FQHC would reduce the grant funding available to subsidize operations in the initial start-up phase. This would necessitate the Board requesting the City provide $150,000 toward subsidizing operations in year one so either way,the City would end up covering the cost. It is prudent to complete the remodel prior to the busy summer season, to minimize disruption to services in the hospital and clinic, so the parties(City,PSMC, SCHC)will work together to develop an implementation plan. The parties will seek a mutually beneficial building configuration, taking into consideration needs of the clinic and the hospital, before letting a bid for design/build services. In addition, PSMC may desire to expand the scope of the project to facilitate some of their own space improvements, which would offer an opportunity to avoid higher future costs. Any specific contracts in excess of $50,000 related to modifications of the building require City Council approval. It is anticipated that a design/build contract will come before Council and that approval will be sought before final building modification. • RESOLUTION 2013- PAGE TWO CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan(document source here):p. 12 "We value effective, accessible 1. and affordable healthcare"; "encourage cooperation between all healthcare X providers"; 2. Strategic Plan(document source here): X 3 Other(list):Resolution 2011-033 authorizing start-up of Seward Community Health X Center ATTORNEY REVIEW: Yes X No FISCAL NOTE: This appropriation represents the third request for funding associated with the Seward Community Health Center Board; the first request for capital funding. Funding for this project will come from sales tax revenues dedicated for healthcare purposes. Approved by Finance Department: L • Mb RECOMMENDATION: to' Council approve Resolution 2013- appropriating $150,000 for building modifications at PSMC to facilitate clinic and space efficiencies associated with operations of a new community health center.