HomeMy WebLinkAboutRes2013-014 Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -014
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO SUBMIT A NEW
ACCESS POINT GRANT APPLICATION FOR FEDERAL FUNDING TO
ESTABLISH A COMMUNITY HEALTH CENTER TO SERVE THE
SEWARD COMMUNITY
WHEREAS, the Seward City Council passed Resolution 2010 -109 on November 8,
2010, authorizing the City's initial application for federally qualified community health center
( "FQHC ") new access point status on behalf of the community of Seward, and the City's
application, while not funded in that grant cycle, scored one point lower than necessary to
qualify for funding; and
WHEREAS, Ordinance 2010 -008 was adopted by the Seward City Council on
December 13, 2010, establishing the powers and duties of the Board of Directors charged with
oversight of the newly created Seward Community Health Center ( "CHC "), with said board of
directors' charter members identified in Resolution 2010 -122 ; and
WHEREAS, the City Council appropriated $65,000 in Resolution 2011 -033 passed April
oft. 25, 2011, to fund startup costs of the new CHC, and approximately $55,000 of those funds
remain to assist in the startup effort; and
WHEREAS, on September 15, 2011, the City of Seward was notified that it was one of
two communities in Alaska, and one of 129 organizations nationwide, to be awarded an $80,000
Affordable Care Act CHC Planning Grant for the purpose of improving Seward's position to
achieve status as a federally qualified health center and those grants funds have been used to
strengthen the next access point grant application; and
WHEREAS, to submit an application for a new access point FQHC in Seward, both the
co- applicant board of the Seward Community Health Center and the public entity's City Council
must support the application for federal funding through the U.S. Department of Health and
Human Services Health Resources and Services Administration ( "HRSA ").
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
SEWARD, ALASKA:
Section 1. The City Manager is hereby authorized and directed to work with the board of
directors of the Seward Community Health Center to submit a new access point grant application
to HRSA on behalf of the community of Seward, for the purposes of seeking Federally Qualified
Health Center status.
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -014
Section 2. The Seward City Council hereby supports creation of a Community Health
Center aimed at expanding access to primary health care for individuals in the Seward
community who are uninsured, underinsured, or have difficulty accessing affordable health care.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 25 day of
February 2013.
THE CITY OF SEWARD, ALASKA
cl
David Seaward, ayor
AYES: Terry, Casagranda, Valdatta, Shafer, Seaward
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Jo nna Kt • - - ' C
Cit, Clerk
(City Seal)
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COUNCIL AGENDA STATEMENT
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Meeting Date: February 25, 2013 V ,:t1 o
From: James Hunt, City Maria. -
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Agenda Item: Council Support for New Access Point Grant Application • To Achieve FQHC Status
BACKGROUND & JUSTIFICATION:
The Seward City Council authorized the creation of the Seward Community Health Center ( "CHC ") and
Board when it enacted Ordinance 2010 -008 in December, 2010. The purpose of that Ordinance was to
formalize the powers and duties of the board of directors who would be charged with overseeing the
newly established Seward Community Health Center.
The City of Seward is the co- applicant for federal funding to establish a Section 330 federally qualified
health center in Seward. The other co- applicant is the Seward Community Health Center Board. That
board has obtained approval as a stand -alone 501(c)3 entity and will operate independent of, but in
cooperation with, the City of Seward, in carrying out the charge of managing the CHC.
The purpose of this resolution is to authorize the City Manager to submit an application to the U.S.
Department of Health & Human Services, Bureau of Primary Health Care, Health Resources Services
Administration ( "HRSA ") New Access Point Grant Program, to seek approval as a Federally Qualified
Health Center ( "FQHC "). This will be the second attempt by the CHC Board and the City to seek
designation as an FQHC. The last application for federal funding fell one point shy of funding.
The purpose of the FQHC program is to expand access to primary health care in Seward. The program
requires a CHC to provide all required primary, preventive, enabling and health services either directly or
through established written arrangements and referrals (see attached "Health Center Program
Requirements "). The CHC will be required to serve patients regardless of their ability to pay, and federal
funds are available to subsidize care for those who are uninsured or underinsured.
There are significant benefits to the community from establishing a CHC, including: 1) reducing the
burden on the hospital emergency room; 2) expanding healthcare to those who cannot afford to pay; 3)
providing enabling services (case management, transportation, translation services, etc.); 4) less costly
care for Medicare patients whose Medicare deductible costs are waived; 5) a voice (through the
consumer - majority Board of Directors) in the operation of the center; 6) access to medical malpractice
coverage under the Federal Tort Claims Act; 7) higher reimbursement rates for FQHCs from Medicaid;
8) cost -based (higher) reimbursement for services to Medicare patients; 9) drug pricing discounts under
the 340B program (provides approximately 20 % -50% cost reduction on pharmaceuticals for safety-net
providers); 10) federal loan guarantees for capital improvements; 11) access to loan reimbursement for
providers; and other benefits.
The creation of a CHC in Seward is expected to expand access to care, reduce the costs of primary care
for all patients, improve opportunities for grant funding for primary care programs and capital needs,
improve the bottom line of the hospital by reducing emergency room utilization for primary care,
improve the financial performance of the clinic through reduction of overhead and higher reimbursement
rates, and provide a more targeted focus on clinical efficiency and fmancial sustainability of clinic
operations.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan (document source here) ;pp. 12, 13, 56 X
2. Strategic Plan (document source here): p. 19 X
3. Other (list): 2010 Seward Primary Care Feasbility Study
ATTORNEY REVIEW: Yes X No
FISCAL NOTE:
The costs of applying for FQHC status are being borne by the Seward Community Health Center through
previous funding appropriated from the City Council. The initial $65,000 in startup cost funding is
largely intact, with approximately $55,000 remaining, as the CHC Board has utilized funding from an
$80,000 HRSA Planning Grant for program costs to -date.
Approved by Finance Department: 1 t Z 4[,41( afi
RECOMMENDATION: IC
Council approve Resolution 2013- authorizing submission of a New Access Point grant application
through the U.S. Department of Health and Human Services, Bureau of Primary Health Care, Health
Resources and Services Administration, for the purpose of seeking recognition as a Federally Qualified
Health Center.
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