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Agenda 03/14/2023 Item #16D7 (Transfer reserves within the Local Provider Participation Fund to remittance to other governments)16.D.7 03/14/2023 EXECUTIVE SUMMARY Recommendation to authorize Budget Amendments totaling $725,185; transferring reserves within the Local Provider Participation Fund (169) to remittances to other governments, for the purpose of remitting payment to the Agency for Health Care Administration as part of the Direct Payment Program Intergovernmental Transfers of State Fiscal Year (SFY) 2022-2023, pursuant to Senate Bill 2500, the General Appropriations Act of SFY 2022-2023. OBJECTIVE: To authorize Budget Amendments within the Local Provider Participation Fund (169) transferring $725,185 from reserves to remittances to other governments. These Budget Amendments are necessary to allow the County to remit payments to the Agency for Health Care Administration of the State of Florida for intergovernmental charges totaling $5,753,218 and additional payments of up to $400,000 depending upon hospitals meeting quality metrics as determined by the Agency for Health Care Administration (AHCA). This transfer will support local area hospitals that provide health services to the low-income citizens of Collier County. CONSIDERATIONS: The County has participated in the State's Intergovernmental Transfer Program (IGT) with the AHCA program since 2006. As a participant in the IGT program, the County provides funding to support the federal matching program for uncompensated care known as the Low -Income Pool Program (LIP). Since 2014, hospitals have elected to no longer participate in the LIP program. However, the County continues to participate in the minor LIP program with Collier Health Services, Inc., the County's Federally Qualified Healthcare Center (FQHC). A similar IGT program was established by the Florida Legislature in FY2021 and is known as the Directed Payment Program (DPP). Nationwide, and especially in Florida, hospitals continue to struggle with the shortfall in Medicaid reimbursement rates. Hospitals in Collier County provide millions of dollars of care to persons who qualify for Medicaid annually, because on average, Medicaid only covers sixty percent (60%) of the costs of the health care services provided by Hospitals to eligible persons. As a direct result of continued revenue shortfalls, during the FY21 Florida Legislative session, Governor DeSantis, with the full support of the House and Senate, approved the establishment of the DPP. This program is available to hospitals providing inpatient and outpatient services to Medicaid -managed care enrollees. It is the intent of the DPP to offset hospitals' Medicaid shortfalls and improve the quality of care provided to the Florida Medicaid population. In 2021, the program was adopted by Collier County and fourteen (14) Florida counties. On June 22, 2021, the Board of County Commissioners (Board) adopted Ordinance 2021-23 Agenda Item #17A, enabling the County to levy a uniform non -ad valorem special assessment, which is fairly and reasonably apportioned among the Hospitals' property interests within the County's jurisdictional limits, for the purpose of establishing and maintaining a system of funding for IGTs to support the non-federal share of Medicaid payments. On September 28, 2021, the Board approved Resolution #2021-197, which established the 2021 Local Provider Participation Fund Special Assessment. The FY 2021 assessment of 1.11 % of net patient revenue was collected and when matched by the federal matching program, the Local Provider Participation Fund contributed $12,248,191 to support low-income patient treatment in Collier County. On September 27, 2022, the Board enacted Resolution #2022-149 Agenda Item #16D5 to continue participation in the Local Provider Participation Fund for the Direct Payment Program and commenced participation in the Graduate Medical Education Program. AHCA advised the County that the LPPF DPP assessment for FY2022 was .69% of net patient revenue and the County could collect a maximum of $5,578,033 from participating Hospitals. Packet Pg. 831 16.D.7 03/14/2023 This amount minus $150,000 in administrative expenses was the anticipated amount required to be submitted to AHCA. The Direct Payment Program letter of Agreement between Collier County and the State of Florida AHCA however permits an IGT in an amount not to exceed the total of $7,231,349. The County in FY23 has collected $5,578,033 from participating Hospitals in keeping with Resolution #2022-149 and Ordinance 2021-23. On February 20, 2023, the County received an invoice from the Agency for Health Care Administration in the amount of $5,753,218 for the Direct Payment Program Intergovernmental Transfer of State Fiscal Year (SFY) 2022-2023, pursuant to Senate Bill 2500, the General Appropriations Act of SFY 2022-2023. The amount collected pursuant to the Board approved the resolution for 2022 was $5,587,033; which included a $150,000 administrative fee. After the administrative fee is deducted from the total collected, $5,428,033 is available to be remitted to the Agency for Health Care Administration within Local Provider Participation Fund (169) Remittances to Other Governments. The difference between the invoiced remittance and the amount available for payment is $325,185. Participating hospitals are also entitled to potentially receive up to approximately $400,000 for meeting quality metrics as defined by AHCA. Therefore $725,185 needs to be transferred within Local Provider Participation Fund (169), from Reserves into remittances to other governments. Any funds that are not invoiced by AHCA will remain within Fund (169). AHCA LPPF-IGT Budget Amendment Collected 5,578,033.00 Collection Administative Fee (150,000.00) Available 5,42-8,033.00 Invoiced Amount $ (5,753,219.00) Current Encumbered $ 5,428,033.00 Funding Required $ (325,185.00) Quality Metric AHCA Upcoming Maximum Possible $ (400,000.00) *To be Determined Funding Required $ _ (32-5,185.00) Proposed Solution Quality Metric $ _ (400,000.00) BudgetAmendment $ 725,185.00 Post -Approval $ There are currently $2,662,000 in program -related reserves. The reserves were created from carry -forward revenues that were programmed as reserves as part of the Board approved resolution on September 27, 2022. These reserve funds are specifically for the support of the Direct Payment Program - Local Provider Participation Fund and were retained by the County for future use to support the program. The transfer from reserves to remittances to other governments requires Board approval. FISCAL IMPACT: The Budget Amendment will; reduce the Local Provider Participation Fund (169) reserve of $2,662,000 by $725,185 to $1,936,815. The Remittances to Other Governments will be correspondingly increased by $725,185 to $6,153,218. There are no additional Fiscal impacts. Packet Pg. 832 16.D.7 03/14/2023 GROWTH MANAGEMENT IMPACT: There is no Growth Management impact. LEGAL CONSIDERATIONS: My understanding of the program is that we assess the local hospitals, then transfer that money to the State, where additional matching funds are added, and the total sum is then sent back to the hospitals. No Collier County taxpayer dollars are involved. This item has been reviewed by the County Attorney, is approved as to form and legality and requires a majority vote for Board action. -JAK RECOMMENDATION: To authorize Budget Amendments within the Local Provider Participation Fund (169) transferring $725,185 from reserves to remittances to other governments. These budget amendments are necessary to allow the County to remit payments to the Agency for Health Care Administration of the State of Florida for intergovernmental charges totaling $5,753,218 and an additional $400,000 dependent upon the hospital achieving quality metrics as set by AHCA. Prepared By: Jeffrey Newman, Manager - Financial Operations, Operations & Veterans Services Division ATTACHMENT(S) 1.Ordinance 2021-23 (PDF) 2. Resolution 2022-149 (PDF) 3. Collier County (PDF) Packet Pg. 833 16.D.7 03/14/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.7 Doc ID: 24805 Item Summary: Recommendation to authorize Budget Amendments totaling $725,185; transferring reserves within the Local Provider Participation Fund (169) to remittances to other governments, for the purpose of remitting payment to the Agency for Health Care Administration as part of the Direct Payment Program Intergovernmental Transfers of State Fiscal Year (SFY) 2022-2023, pursuant to Senate Bill 2500, the General Appropriations Act of SFY 2022-2023. Meeting Date: 03/14/2023 Prepared by: Title: — Operations & Veteran Services Name: Jeff Newman 03/01/2023 7:29 AM Submitted by: Title: — Operations & Veteran Services Name: Jeff Newman 03/01/2023 7:29 AM Approved By: Review: Operations & Veteran Services Community & Human Services Public Services Department Community & Human Services Public Services Department Office of Management and Budget County Attorney's Office Office of Management and Budget Community & Human Services County Manager's Office Board of County Commissioners Jeff Newman Additional Reviewer Kristi Sonntag Additional Reviewer Todd Henry PSD Level 1 Reviewer Maggie Lopez Additional Reviewer Tanya Williams PSD Department Head Review Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Christopher Johnson Additional Reviewer Maggie Lopez Additional Reviewer Dan Rodriguez Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 03/01/2023 9:02 AM Completed 03/02/2023 8:00 AM Completed 03/02/2023 9:28 AM Completed 03/07/2023 1:58 PM Completed 03/02/2023 10:30 AM Completed 03/03/2023 8:33 AM Completed 03/03/2023 9:19 AM Completed 03/05/2023 10:36 AM Completed 03/06/2023 8:37 AM Completed 03/06/2023 1:09 PM 03/14/2023 9:00 AM Packet Pg. 834 16.D.7.a ORDINANCE NO.2021-_2_3_ AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, TO BE CODIFIED IN CHAPTER 114 AS ARTICLE VI OF THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES AUTHORIZING THE CREATION OF THE COLLIER COUNTY LOCAL PROVIDER PARTICIPATION FUND ("FUND") UNDER THE AUTHORITY OF SECTION 1(F), ARTICLE VIII OF THE CONSTITUTION OF THE STATE OF FLORIDA SPECIFYING THE METHOD OF SETTING AND COMPUTING ANNUAL NON -AD VALOREM SPECIAL ASSESSMENTS TO BE DEPOSITED INTO THE FUND AND SPECIFYING AUTHORIZED USES FOR THE FUND; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE DATE OF JULY 1, 2021 UNLESS THE ENABLING LEGISLATION IS NOT APPROVED BY THE GOVERNOR OF THE STATE OF FLORIDA. RECITALS: WHEREAS, the hospitals in Collier County's jurisdiction (the "Hospitals") annually provide millions of dollars of uncompensated care to persons who qualify for Medicaid because Medicaid, on average, covers only 60% of the costs of the health care services actually provided by Hospitals to Medicaid eligible persons, leaving hospitals with significant uncompensated costs ("Medicaid shortfall'); and WHEREAS, the State of Florida (the "State") has received federal authority to establish the Statewide Medicaid Managed Care hospital directed payment program (the "DPP") to offset hospitals' Medicaid shortfall and improve quality of care provided to Florida's Medicaid population; and WHEREAS, impacted Hospitals have asked Collier County (the "County") to impose an assessment upon certain real property owned by the Hospitals to help finance the non-federal share of the State's Medicaid program; and WHEREAS, the only properties to be assessed in these localities are the real property sites of such Hospitals; and WHEREAS, the County recognizes that one or more Hospitals within the County's boundaries may be located upon real property leased from governmental entities and that such Hospitals may be assessed because courts do not make distinctions on the application of special assessments based on "property interests" but rather on the distinction of the classifications of real property being assessed; and Page 1 of 10 �O Packet Pg. 835 WHEREAS, the funding raised by the County assessment will, through intergovernmental transfers ("IGTs") provided consistent with federal guidelines, support additional funding for Medicaid payments to Hospitals to address the Medicaid shortfall; and WHEREAS, the County acknowledges that the Hospital properties assessed will benefit directly and especially from the assessment as a result of the above -described additional funding provided to said Hospitals; and WHEREAS, the County has determined that a logical relationship exists between the Medicaid services provided by the Hospitals, which will be supported by the assessment, and the special and particular benefit to the real property of the Hospitals; and WHEREAS, the County has an interest in promoting access to health care for its low- income and under -insured residents; and WHEREAS, leveraging additional federal support through the above -described IGTs to fund payments to the Hospitals for health care services provided to Medicaid eligible persons directly and specifically benefits the Hospitals' properties and supports their continued ability to provide those services; and WHEREAS, imposing an assessment limited to Hospital properties to help fund the provision of Medicaid services and the achievement of certain quality standards by the Hospitals to residents of the County is a valid public purpose that benefits the health, safety, and welfare of the citizens of the County; and WHEREAS, the assessment ensures the financial stability and viability of the Hospitals providing Medicaid services; and WHEREAS, the Hospitals are important contributors to the overall County's economy, and the financial benefit to these Hospitals directly and specifically supports their mission, as well as their ability to grow, expand, and maintain their facilities in concert with the population growth in the jurisdiction of the County; and WHEREAS, the County finds the assessment will enhance the Hospitals' ability to grow, expand, maintain, improve and increase the value of their properties and facilities under all present circumstances and those of the foreseeable future; and WHEREAS, the County is proposing a properly apportioned assessment by which all Hospitals will be assessed a uniform amount that is compliant with 42 C.F.R. § 433.68(d); and WHEREAS, the adoption of this Ordinance will enable the County to levy a uniform non -ad valorem special assessment, which is fairly and reasonably apportioned among the Hospitals' properties within the County's jurisdictional limits, to establish and maintain a system of funding for IGTs to support the non-federal share of Medicaid payments that will directly and specially benefit Hospital properties. Page 2 of 10 O Packet Pg. 836 16.D.7.a WHEREAS, for the first year of the assessment the County finds that the alternative method, as specified in § 197.3631, Fla. Stat., for the assessment and collection of the non -ad valorem special assessment is appropriate but in future tax years may elect to use the uniform method if approved by the Board. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION 1. Chapter 126 of the Collier County Code of Laws and Ordinances, is hereby amended, by adding a new Article VI as follows: Sec. 126-211. - Title This Article VI shall be known and may be cited as the "Collier County Local Provider Participation Fund Ordinance." Sec, 126-212. - Authority. Pursuant to Article VII1, Section l(f) of the Constitution of the State of Florida and Florida Statutes 125, the Board is hereby authorized to impose a special assessment against private for - profit and not -for -profit hospitals located within the County to fund the non-federal share of Medicaid payments associated with Local Services. Sec. 126-213. - Purpose. The non -ad valorem special assessment authorized by this Article shall be imposed, levied, collected, and enforced against Assessed Properties located within the County. Proceeds from the Assessment shall be used to benefit Assessed Properties through enhanced Medicaid payments for Local Services. When imposed, the Assessment shall constitute a lien upon the Assessed Properties equal in rank and dignity with the liens of all state, county, district, or municipal taxes and other non -ad valorem assessments. Failure to pay may cause foreclosure proceedings, which could result in loss of title, to commence. The Assessment shall be computed and assessed only in the manner provided in this Ordinance. Sec. 126-214. - Alternative Method. This Ordinance shall be deemed to provide an additional and alternative method, as specified in § 197.3631, Fla. Stat., for the assessment and collection of the non -ad valorem special assessment described herein. The Ordinance shall be regarded as supplemental and additional to powers conferred by other laws and shall not be regarded as in derogation of any powers now existing or which may exist hereafter. This Ordinance, being necessary for the health, safety, and welfare of the inhabitants of the County, shall be liberally construed to effect the purposes hereof. Sec. 126-215. - Definitions. Page 3 of 10 gyp Packet Pg. 837 When used in this Ordinance, the following terms shall have the meanings below, unless the context clearly requires otherwise: Annual Final Assessment Resolution means the resolution described in Sections 126-224 and 126-225 hereof, which shall be the final proceeding for the imposition of an Assessment, establishing the rate for the non -ad valorem assessment for a specific Fiscal Year. Assessed Property means an Institutional Health Care Provider holding a right of possession and right of use of real property in the County through an ownership or leasehold interest, thus making the property subject to the Assessment. Assessment means a non -ad valorem special assessment imposed by the County on Institutional Health Care Providers located in the County limits to fund the non-federal share of Medicaid and Medicaid managed care payments directed to hospitals providing Local Services in the County. Assessment Coordinator means the person appointed by the County Manager or designee to administer the Assessment imposed pursuant to this Article, or such person's designee. Assessment Resolution means the resolution described in Section 126-219 hereof. Board means the Board of County Commissioners of Collier County, Florida. County means Collier County, Florida. Fiscal Year means the period commencing on October 1 of each year and continuing through the next succeeding September 30, or such other period as may be prescribed by law as the fiscal year for the County. Institutional Health Care Provider means a private for -profit or not -for -profit hospital that provides inpatient hospital services. Local Services means the provision of inpatient and outpatient hospital services to Medicaid, indigent, and uninsured members of the Collier County community. Non Ad Valorem Assessment Roll means the special assessment roll prepared by the County. Ordinance means the Collier County Local Provider Participation Fund Ordinance as it may be codified in Chapter 114 as Article VI in the Collier County Code of Laws and Ordinances. Tax Collector means the Collier County Tax Collector. Page 4 of 10 c'y O Packet Pg. 8381 16.D.7.a Sec. 126-216. - Interpretation. Unless the context indicates otherwise, the terms "hereof," "hereby," "herein," "hereto," "hereunder" and similar terms refer to this Article. The term "hereafter" means after and the term "heretofore" means before the effective date of the Ordinance. Sec. 126-217. - Assessment. Pursuant to § 125.01, Fla. Stat., the Board is hereby authorized to create a non -ad valorem special assessment that shall be imposed, levied, collected, and enforced against Assessed Property to fund the non-federal share of Medicaid payments benefitting Assessed Properties providing Local Services in the County. Funds generated as a result of the Assessment shall be held in a separate account called the local provider participation fund and shall be available to be used only to: (1) provide to the Florida Agency for Health Care Administration the non-federal share for Medicaid payments to be made directly or indirectly in support of hospitals serving Medicaid beneficiaries and (2) reimburse the County for administrative costs associated with the implementation of the Assessment authorized by this Ordinance, as further specified in the Assessment Resolution. The Assessment will be broad based, and the amount of the Assessment must be uniformly imposed on each Assessed Property. The Assessment may not hold harmless any Institutional Health Care Provider, as required under 42 U.S.C. § 1396b (w). As set forth in Section 126-213, the Assessment shall constitute a lien upon the Assessed Properties equal in rank and dignity with the liens of all state, county, district, or municipal taxes and other non -ad valorem assessments. In addition to other remedies available at law or equity, the enforcement of the aforesaid Assessment shall be at the same time and in like manner as ad valorem taxes and subject to all ad valorem tax enforcement procedures afforded to the official annual real property tax notice. Creation and implementation of the Assessment will not result in any additional pecuniary obligation on the County, Board, or County residents. The Assessment shall be imposed, levied, collected, and enforced against only Assessed Properties, and the Assessment Resolution shall provide that the County's administrative costs shall be reimbursed from the collected amounts. The County's administrative costs shall not exceed $150,000. Any reasonable expenses the County incurs to collect delinquent assessments, including any attorney's fees incurred as a result of contracting with an attorney to represent the county in seeking and enforcing the collection of delinquent assessments, are not subject to the limitation on administrative costs. Sec. 126-218.- Computation of Assessment. The annual Assessment shall be specified for each Assessed Property. The Board shall set the Assessment in amounts that in the aggregate will generate sufficient revenue to fund the non- federal share of Medicaid payments associated with Local Services to be funded by the Assessment. Page 5 of 10 Packet Pg. 839 The amount of the Assessment required of each Assessed Property may not exceed an amount that, when added to the amount of other required assessments, equals an amount of revenue that exceeds the maximum percent of the aggregate net patient revenue of all Assessed Hospitals in the County permitted by 42 C.F.R. § 433.68(f)(3)(i)(A). Assessments for each Assessed Property will be derived from data contained in the Florida Hospital Uniform Reporting System, as available from the Florida Agency for Health Care Administration. Sec. 126-219. - Assessment Resolution. The Assessment Resolution shall describe: (a) the Medicaid payments proposed for funding from proceeds of the Assessment; (b) the benefits to the Assessment Properties associated with the Assessment; (c) the methodology for computing the assessed amounts; and (d) the method of collection, including how and when the Assessment must paid. Sec. 126-220. - Non -Ad Valorem Assessment Roll. The Assessment Coordinator shall prepare, or direct the preparation of, the Non -Ad Valorem Assessment Roll, which shall contain the following: a) The names of the Assessed Properties; and b) The Assessment rate and amount of the Assessment to be imposed against each Assessed Property based on the Assessment Resolution. The Non -Ad Valorem Assessment Roll shall be retained by the Assessment Coordinator and shall be open to public inspection. The foregoing shall not be construed to require that the Assessment Roll be in printed form if the amount of the Assessment for each Assessed Property can be determined by use of a computer terminal available to the public. Sec. 126-221. - Notice by Publication. Upon completion of the Non -Ad Valorem Assessment Roll, the Assessment Coordinator shall publish once in a newspaper of general circulation within the County a notice stating that the Board, at a regular, adjourned, or special meeting on a certain day and hour, not earlier than 20 calendar days from such publication, will hear objections of all interested persons to approve the aforementioned Non -Ad Valorem Assessment Roll. Such notice shall include: a) The Assessment rate; b) The procedure for objecting to the Assessment rate; c) The method by which the Assessment will be collected; and d) A statement that the Non -Ad Valorem Special Assessment Roll is available for inspection at the Office of the Assessment Coordinator. Page 6 of 10 Gr Packet Pg. 840 Sec. 126-222. - Notice by Mail. In addition to the published notice required by Section 126-221, but only for the first fiscal year in which an Assessment is imposed by the Board against Assessed Properties, the Assessment Coordinator shall provide notice of the proposed Assessment by first class mail to the Assessed Properties. Such notice shall include: a) The purpose of the Assessment; b) The Assessment rate to be levied against each Assessed Property; c) The unit of measurement applied to determine the Assessment; d) The total revenue to be collected by the County from the Assessment; e) A statement that failure to pay the Assessment will cause a tax certificate to be issued against the property or foreclosure proceedings, either of which may result in a loss of title to the property; f) A statement that all affected and/or interested parties have a right to appear at the hearing and to file written objections with the Board within 20 days of the notice; and g) The date, time, and place of the hearing. Notice shall be mailed at least 20 calendar days prior to the hearing to each Assessed Property at such address as is shown on the Assessment Roll. Notice shall be deemed mailed upon delivery thereof to the possession of the United States Postal Service. The Assessment Coordinator may provide proof of such notice by affidavit. Failure of the Assessed Property to receive such notice, because of mistake or inadvertence, shall not affect the validity of the Assessment Roll or release or discharge any obligation for payment of the Assessment imposed by the Board pursuant to this Article. Sec. 126-223. - Adoption of Assessment Resolution and Non -Ad Valorem Assessment Roll. At the time named in the notice, the Board shall receive and consider any written objections of interested persons. All objections to the Assessment Resolution and Non -Ad Valorem Assessment Roll shall be made in writing and filed with the Assessment Coordinator at or before the time or adjourned time of such hearing. At the date and time named in the notice, the Board may adopt the Assessment Resolution and Non -Ad Valorem Assessment Roll which shall: a) Set the rate of the Assessment to be imposed; b) Approve the Non -Ad Valorem Assessment Roll, with such amendments as it deems just and right; and c) Affirm the method of collection. Page 7 of 10 rt� C. Packet Pg. 841 Sec. 126-224. - Annual Final Assessment Resolution. The Board may revise the Non -Ad Valorem Assessment Roll during the Fiscal Year to modify the Assessment rate. However, the Board must adopt an Annual Final Assessment Resolution during the Fiscal Year to memorialize the final rate applicable for the Fiscal Year. Sec. 126-225. - Effect of Annual Final Assessment Resolution. The adoption of the Annual Final Assessment Resolution shall be the final adjudication of the issues presented (including, but not limited to, the method of apportionment and Assessment, the Assessment rate, the initial rate of Assessment, the Non -Ad Valorem Assessment Roll, and the levy and lien of the Assessments), unless proper steps shall be initiated in a court of competent jurisdiction to secure relief within 20 days from the date of Board action on the Annual Final Assessment Resolution. The Non -Ad Valorem Assessment Roll shall be delivered to the Tax Collector or such other official as the Board by resolution shall designate. Sec. 126-226. - Method of Collection. The amount of the assessment is to be collected pursuant to the Alternative Method, as specified in the Assessment Resolution. Sec. 126-227. - Refunds. If, at the end of the Fiscal Year, additional amounts remain in the local provider participation fund, the Board is hereby authorized to make refund to Assessed Properties in proportion to amounts paid in during the Fiscal Year for all or a portion of the unutilized local provider participation fund. Sec. 126-228. - Responsibility for Enforcement. The County and its agent, if any, shall maintain the duty to enforce the prompt collection of the Assessment by the means provided herein. The duties related to collection of assessments may be enforced at the suit of any holder of obligations in a court of competent jurisdiction by mandamus or other appropriate proceedings or actions. Sec. 126-229. - Correction of Errors and Omissions. No act of error or omission on the part of the Comptroller, Property Appraiser, Tax Collector, Assessment Coordinator, Board, or their deputies or employees shall operate to release or discharge any obligation for payment of the Assessment imposed by the Board under the provision of this Chapter. Pages of 10 0 Packet Pg. 842 SECTION 2. APPLICABILITY. It is hereby intended that this Ordinance shall constitute a uniform law applicable in all unincorporated areas of Collier County, Florida, and to all incorporated areas of Collier County where there is no existing conflict of law or municipal ordinance. SECTION 3. SEVERABILITY. In the event this Ordinance conflicts with any other Ordinance of Collier County or other applicable law, deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. SECTION 4. RESOLUTION OF CONFLICT OF LAWS. In all instances where Florida law, as evidenced by the Florida Administrative Code, Florida Statutes, applicable case law, or otherwise mandates standards or requirements that are stricter than the provisions of this Ordinance, or where a matter is addressed by Florida law that is not addressed by this Ordinance, then said law shall govern. In situations where this Ordinance addresses a matter in a manner that is stricter than that of Florida law, the provisions of this Ordinance shall control. SECTION 5. INCLUSION IN THE COLLIER COUNTY CODE. The provisions of this Ordinance shall be included and incorporated in the Collier County Code, as an addition or amendment thereto, and shall be appropriately renumbered to conform to the uniform numbering system of the Collier County Code, once established. The word 'ordinance" may be changed to "section," "article," or other appropriate word or phrase necessary to accomplish such intentions. SECTION 6. FILING OF ORDINANCE. In accordance with the provisions of § 125.66, Fla. Stat., a certified copy of this Ordinance shall be filed with the Florida Department of State. SECTION 7. EFFECTIVE DATE. This Ordinance shall become effective July 1, 2021 unless the enabling legislation is not approved by the Governor of the State of Florida. PASSED AND 1 ULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this Aday of , 2021. Page 9 of 10 n Packet Pg. 843 ATTEST: BOARD OF COUNTY COMMISSIONERS CRYSTAL K KINZEL, CLERK COLLIER/O�N Y, FLORIDA, N rt f By: By: DEPUT PE Y TA Attest aso Chairman's4; 6�n a !signature only. Approved as to foam and legality: �z e i r A. Bel edio 3 nun p 5� Assistant County Atto e This ordinaricc fired vritli 4 6f secr tort' of 5tut�'s (i'i icy day Of �02..1..* and ackncwled�emc` t thot phis receiaed filing �O of J �l By peoihY C Page 10 of 10 G M N N O N d V C fC C L O c t 0 r Q Packet Pg. 844 16.D.7.a FLORIDA DEPARTMENT Of STATE RON DESANTIS Governor July 1, 2021 Ms. Martha Vergara, BMR & VAB Senior Deputy Clerk Office of the Clerk of the Circuit Court & Comptroller of Collier County 3329 Tamiami Trail E, Suite #401 Naples, Florida 34112 Dear Ms. Vergara: LAUREL M.LEE Secretary of State Pursuant to the provisions of Section 125.66, Florida Statutes, this will acknowledge receipt of your electronic copy of Collier County Ordinance No. 2021-23, which was filed in this office on July 1, 2021 Sincerely, Anya Grosenbaugh Program Administrator AG/lb R. A. Gray Building . 500 South Bronough Street • Tallahassee, Florida 32399-0250 Telephone: (850) 245-6270 Packet Pg. 845 RESOLUTION NO. # 2022 - 1 4 9 AN ASSESSMENT RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AUTHORIZING AND ADOPTING A NON -AD VALOREM SPECIAL ASSESSMENT WITHIN THE COUNTY LIMITS FOR THE PURPOSE OF BENEFITING ASSESSED PROPERTIES THROUGH ENHANCED MEDICAID PAYMENTS FOR LOCAL SERVICES; FINDING AND DETERMINING THAT CERTAIN REAL PROPERTY IS SPECIALLY BENEFITED BY THE ASSESSMENT; COLLECTING THE ASSESSMENT AGAINST THE REAL PROPERTY; ESTABLISHING A PUBLIC HEARING TO CONSIDER IMPOSITION OF THE PROPOSED ASSESSMENT AND THE METHOD OF ITS COLLECTION; AUTHORIZING AND DIRECTING THE PUBLICATION OF NOTICES IN CONNECTION THEREWITH; PROVIDING FOR CERTAIN OTHER AUTHORIZATIONS AND DELEGATIONS OF AUTHORITY AS NECESSARY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, hospitals in Collier County's jurisdiction (the "Hospitals") annually provide millions of dollars of uncompensated care to uninsured persons and those who qualify for Medicaid because Medicaid, on average, covers only 60% of the costs of the health care services actually provided by Hospitals to Medicaid -eligible persons, leaving hospitals with significant uncompensated costs; and WHEREAS, Hospitals in Collier County (the "County") support a non -ad valorem special assessment upon certain real property interests held by the Hospitals to help finance the non- federal share of the State's Medicaid program; and WHEREAS, the only real properties interests that will be subject to the non -ad valorem assessments authorized herein are those belonging to the Hospitals; and WHEREAS, the County recognizes that one or more of the Hospitals within the County's boundaries may be located upon real property leased from governmental entities and that such Hospitals may be assessed because courts do not make distinctions on the application of special assessments based on "property interests" but rather on the distinction of the classifications of real property being assessed; and WHEREAS, the funding raised by the County assessment will, through intergovernmental transfers ("IGTs") provided consistent with federal guidelines, support additional funding for Medicaid payments to Hospitals; and US_ACUV6\118603232\V-1 Packet Pg. 846 WHEREAS, the County acknowledges that the Hospital properties assessed will have increased income potential directly and especially from the assessment as a result of the above - described additional funding provided to said Hospitals; and WHEREAS, the County has determined that a logical relationship exists between the services provided by the Hospitals, which will be supported by the assessment, and the special and particular benefit to the real property of the Hospitals; and WHEREAS, the County has an interest in promoting access to health care for its low- income and uninsured residents; and WHEREAS, imposing an assessment limited to Hospital properties to help fund the provision of these services and the achievement of certain quality standards by the Hospitals to residents of the County is a valid public purpose that benefits the health, safety, and welfare of the citizens of the County; and WHEREAS, the assessment ensures the financial stability and viability of the Hospitals providing such services; and WHEREAS, the Hospitals are important contributors to the County's economy, and the financial benefit to these Hospitals directly and specifically supports their mission, as well as their ability to grow, expand, and maintain their facilities in concert with the population growth in the jurisdiction of the County; and WHEREAS, the Board finds the assessment will enhance the Hospitals' ability to grow, expand, maintain, improve, and increase the value of their Collier County properties and facilities under all present circumstances and those of the foreseeable future; and WHEREAS, the County is proposing a properly apportioned assessment by which all Hospitals will be assessed at a uniform rate that is compliant with 42 C.F.R. § 433.68(d); and WHEREAS, on June 22, 2021, the Board of County Commissioners adopted Ordinance 2021-23, enabling the County to levy a uniform non -ad valorem special assessment, which is fairly and reasonably apportioned among the Hospitals' property interests within the County's jurisdictional limits, to establish and maintain a system of funding for IGTs to support the non- federal share of Medicaid payments, thus directly and specially benefitting Hospital properties. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA: Section 1. Definitions. As used in this Resolution, the following capitalized terms, not otherwise defined herein or in the Ordinance, shall have the meanings below, unless the context otherwise requires. US_Active11186032321V• 1 Packet Pg. 847 Assessed Property means the real property in the County to which an Institutional Health Care Provider holds a right of possession and right of use through an ownership or leasehold interest, thus making the property subject to the Assessment. Assessment means a non -ad valorem special assessment imposed by the County on Assessed Property to fund the non-federal share of Medicaid and Medicaid managed care payments that will benefit hospitals providing Local Services in the County. Assessment Coordinator means the person appointed to administer the Assessment imposed pursuant to this Article, or such person's designee. Board means the Board of County Commissioners of Collier County, Florida. Comptroller means the Collier County Comptroller, ex offtcio Clerk to the Board, or other such person as may be duty authorized to act on such person's behalf. County means Collier County, Florida. Fiscal Year means the period commencing on October 1 of each year and continuing through the next succeeding September 30, or such other period as may be prescribed by law as the fiscal year for the County. Institutional Health Care Provider means a private for -profit or not -for -profit hospital that provides inpatient hospital services. Local Services means the provision of health care services to Medicaid, indigent, and uninsured members of the Collier County community. Non -Ad Valorem Assessment Roll means the special assessment roll prepared by the County. Ordinance means the Collier County Local Provider Participation Fund Ordinance codified in Chapter 126 of the Collier County Code of Ordinances. Tax Collector means the Collier County Tax Collector. Section 2. Authority. Pursuant to Article VIII, Section 1(0 of the Constitution of the State of Florida, Chapter 125 of the Florida Statutes, and the Collier County Local Provider Participation Fund Ordinance, the Board is hereby authorized to impose a special assessment against private for -profit and not -for -profit hospitals located within the County to fund the non- federal share of Medicaid payments associated with Local Services. Section 3. Special Assessment. The non -ad valorem special assessment discussed herein shall be imposed, levied, collected, and enforced against Assessed Properties located within the County. Proceeds from the Assessment shall be used to benefit Assessed Properties through enhanced Medicaid payments from programs, including the hospital directed payment program and graduate medical education program, that will benefit the Assessed Properties for Local Services. US_Actve11186032321V-1 Packet Pg. 848 When imposed, the Assessment shall constitute a lien upon the Assessed Properties owned by Hospitals and/or a lien upon improvements on the Property made by Hospital leaseholders equal in rank and dignity with the liens of all state, county, district, or municipal taxes and other non -ad valorem assessments. Payments made by Assessed Properties may not be passed along to patients of the Assessed Property as a surcharge or as any other form of additional patient charge. Failure to pay may cause foreclosure proceedings, which could result in loss of title, to commence. Section 4. Assessment Scone, Basis. and Use. Funds generated from the Assessment shall be used only to: 1. Provide to the Florida Agency for Health Care Administration the non-federal share for Medicaid payments, including the hospital directed payment program and graduate medical education program, to be made directly or indirectly in support of hospitals serving Medicaid beneficiaries; and 2. Reimburse the County for administrative costs associated with the implementation of the Assessment authorized by the Ordinance. If, at the end of the Fiscal Year, additional amounts remain in the local provider participation fund, the Board is hereby authorized either (a) to refund to Assessed Properties, in proportion to amounts paid in during the Fiscal Year, all or a portion of the unutilized local provider participation fund, or (b) to retain such amounts in the fund to transfer to the Agency in the next fiscal year for use as the non-federal share of Medicaid hospital payments. If, after the Assessment funds are transferred to the Agency, the Agency returns some or all of the transferred funding to the County (including, but not limited to, a return of the non-federal share after a disallowance of matching federal funds), the Board is hereby authorized to refund to Assessed Properties, in proportion to amounts paid in during the Fiscal Year, the amount of such returned funds. Section 5. Computation of Assessment. The Assessment shall equal o.69% of net patient revenue for each Assessed Property specified in the attached Non -Ad Valorem Assessment Roll. The amount of the Assessment required of each Assessed Property may not exceed an amount that, when added to the amount of other hospital assessments levied by the state or local government, exceeds the maximum percent of the aggregate net patient revenue of all Assessed Hospitals in the County permitted by 42 C.F.R. § 433.68(f)(3)(i)(A). Assessments for each Assessed Property will be derived from data contained in cost reports and/or in the Florida Hospital Uniform Reporting System, as available from the Florida Agency for Health Care Administration. Section 6. Timina and Method of Collection. The amount of the assessment is to be collected pursuant to the Alternative Method outlined in § 197.3631, Fla. Stat. The County shall provide Assessment bills by first class mail to the owner of each affected Hospital. The bill or accompanying explanatory material shall include: (1) a reference to this Resolution, (2) the total amount of the hospital's Assessment for the appropriate period, (3) the location at which payment will be accepted, (4) the date on which the Assessment is due, and (5) a US Aetive1118603232W-1 Packet Pg. 849 statement that the Assessment constitutes alien against assessed property and/or improvements equal in rank and dignity with the liens of all state, county, distnct or municipal taxes and other non -ad valorem assessments. No act of error or omission on the part of the Comptroller, Property Appraiser, Tax Collector, Assessment Coordinator, Board, or their deputies or employees shall operate to release or discharge any obligation for payment of the Assessment imposed by the Board under the Ordinance and this resolution. Section 7. Public Hearing. Per the notice provided on September 7, 2022, the Board has heard and considered objections of all interested persons prior to rendering a decision on the Assessment and attached Non -Ad Valorem Assessment Roll. Section 8. Responsibility for Enforcement The County and its agent, if any, shall maintain the duty to enforce the prompt collection of the Assessment by the means provided herein. The duties related to collection of assessments may be enforced at the suit of any holder of obligations in a court of competent jurisdiction by mandamus or other appropriate proceedings or actions. Section 9. Severabilit•. If any clause, section, or provision of this resolution is declared unconstitutional or invalid for any reason or cause, the remaining portion hereof shall be in full force and effect and shall be valid as if such invalid portion thereof had not been incorporated herein. Section 10. Effective Date, This Resolution to be effective immediately upon adoption. This Resolution duly adopted this 27`i' day of September, 2022, BOARD OF COUNTY COMMISSIONERS ATTES COLLIER COUNTY, FLORIDA -- CRYST ZEL,CLMK BY: By: _/ �``' Willis M a Approval as talf64 A legality r r s�ttt County Attorney US Active11186032321V•1 5 `�1� 1 n r ^, Packet Pg. 850 DocuSign Envelope ID: E3FFE20D-F565-4C4F-AC38-A33COD29C3C1 Directed Payment Program Letter of Agreement THIS LETTER OF AGREEMENT (LOA) is made and entered into in duplicate on the 27t.( day of 2022, by and between Collier County (the "IGT Provide ') on behalf of Region 8 , and the State of Florida, Agency for Health Care Administration (the "Agency"), for good and valuable consideration, the receipt and sufficiency of which is acknowledged. DEFINITIONS "Intergovernmental Transfers (IGTs)" means transfers of funds from a non -Medicaid governmental entity (e.g., counties, hospital taxing districts, providers operated by state or local government) to the Medicaid agency. IGTs must be compliant with 42 CFR Part 433 Subpart B. "Medicaid" means the medical assistance program authorized by Title XIX of the Social Security Act, 42 US.C. §§ 1396 et seq., and regulations thereunder, as administered in Florida by the Agency. "Directed Payment Program (DPP)," pursuant to the General Appropriation Act, Laws of Florida 2021-156, is the program that provides direct supplemental payments to eligible public and private entities that provide inpatient and outpatient services to Medicaid managed care recipients. A. GENERAL PROVISIONS 1. Per House Bill 5001, the General Appropriations Act of State Fiscal Year 2022- 2023,passed by the 2022 Florida Legislature, the IGT Provider and the Agency agree that the IGT Provider will remit IGT funds to the Agency in an amount not to exceed the total Of $7,231,349.00 . The IGT Provider and the Agency have agreed that these IGT funds will only be used for the DPP program. 2. The IGT Provider will return the signed LOA to the Agency. 3. The IGT Provider will pay IGT funds to the Agency in an amount not to exceed the total of $7,231,349.00 The IGT Provider will transfer payments to the Agency in the following manner: a. Per Florida Statute 409.908, annual payments for the months of July 2022 through June 2023 are due to the Agency no later than October 31, 2022, unless an alternative plan is specifically approved by the agency. b. The Agency will bill the IGT Provider when payment is due. 4. The IGT Provider and the Agency agree that the Agency will maintain necessary records and supporting documentation applicable to health services covered by this LOA in accordance with public records laws and established retention schedules. a. AUDITS AND RECORDS i. IGT Provider agrees to maintain books, records, and documents (including Collier County _DPP LOA_SFY 2022-23 Region 8 Packet Pg. 851 DocuSign Envelope ID: E3FFE20D-F565-4C4F-AC3B-A33COD29C3C1 16. D.7. b electronic storage media) pertinent to performance under this LOA in accordance with generally accepted accounting procedures and practices, which sufficiently and properly reflect all revenues and expenditures of funds provided. ii. IGT Provider agrees to assure that these records shall be subject at all reasonable times to inspection, review, or audit by state personnel and other personnel duly authorized by the Agency, as well as by federal personnel. iii. IGT Provider agrees to comply with public record laws as outlined in section 119.0701, Florida Statutes. b. RETENTION OF RECORDS The IGT Provider agrees to retain all financial records, supporting documents, statistical records, and any other documents (including electronic storage media) pertinent to performance under this LOA for a period of six (6) years after termination of this LOA, or if an audit has been initiated and audit findings have not been resolved at the end of six (6) years, the records shall be retained until resolution of the audit findings. ii. Persons duly authorized by the Agency and federal auditors shall have full access to and the right to examine any of said records and documents. iii. The rights of access in this section must not be limited to the required retention period but shall last as long as the records are retained. c. MONITORING i. IGT Provider agrees to permit persons duly authorized by the Agency to inspect any records, papers, and documents of the IGT Provider which are relevant to this LOA. d. ASSIGNMENT AND SUBCONTRACTS The IGT Provider agrees to neither assign the responsibility of this LOA to another party nor subcontract for any of the work contemplated under this LOA without prior written approval of the Agency. No such approval by the Agency of any assignment or subcontract shall be deemed in any event or in any manner to provide for the incurrence of any obligation of the Agency in addition to the total dollar amount agreed upon in this LOA. All such assignments or subcontracts shall be subject to the conditions of this LOA and to any conditions of approval that the Agency shall deem necessary. 5. This LOA may only be amended upon written agreement signed by both parties. The IGT Provider and the Agency agree that any modifications to this LOA shall be in the same form, namely the exchange of signed copies of a revised LOA. 6. IGT Provider confirms that there are no pre -arranged agreements (contractual or otherwise) between the respective counties, taxing districts, and/or the providers to re- direct any portion of these aforementioned supplemental payments in order to satisfy non - Medicaid, non -uninsured, and non-underinsured activities. Collier County Region 8 _DPP LOA_SFY 2022-23 Packet Pg. 852 DocuSign Envelope ID E3FFE20D-F565-4C4F-AC3B-A33COD29C3C1 7. IGT Provider agrees the following provision shall be included in any agreements between IGT Provider and local providers where IGT funding is provided pursuant to this LOA. Funding provided in this agreement shall be prioritized so that designated IGT funding shall first be used to fund the Medicaid program and used secondarily for other purposes. 8. This LOA covers the period of July 1, 2022 through June 30, 2023 and shall be terminated September 30, 2023, which includes the states certified forward period. 9. This LOA may be executed in multiple counterparts, each of which shall constitute an original, and each of which shall be fully binding on any party signing at least one counterpart. DPP Local Intergovernmental Transfers Program / Amount State Fiscal Year 2022-2023 Estimated IGTs $7,231,349.00 j Total Funding Not to Exceed $7,231,349.00 IN WITNESS WHEREOF, the parties have caused this page Letter of Agreement to be executed by their undersigned officials as duly authorized. ACC e/1 SIGNED BY: ` NAME: Wilfam L. McDaniel, Jr., Chairman TITLE: (—A A'-1 DATE: y;7 ATT ' ZEL,CLERK CRYST " rLN BY: i Collier County Region 8 STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION SIGNED BY: NAME: TITLE: DATE: I Approve4 ipilry Jcfirey A. K atztcbW,(f�rpgey / DPP LOA SFY 2022-23 Packet Pg. 853 16.D.7.c February 20, 2023 Yahaira Magee Collier County LPPF 3299 Tamiami Trail East Naples, FL 34112 Dear Yahaira Magee: RON DESANTIS GOVERNOR JASON WEIDA SECRETARY This document shall serve as a formal invoice for the purpose of billing for Medicaid payments, which are outlined in the transfer agreement executed between the Agency for Health Care Administration and the Collier County LPPF on behalf of Region 8. You are being billed the amount of $5,753,218 for the Directed Payment Program Intergovernmental Transfers of State Fiscal Year (SFY) 2022-2023, pursuant to Senate Bill 2500, the General Appropriations Act of SFY 2022-2023. In an effort to increase our efficiency and decrease the turnaround times on payments we are requesting that you please notify us when you are sending your payments. This will allow us to release payment to providers in a timely manner. Please notify me via email at Supplemental payments@ahca.myflorida.com with the following information: - If you are sending a check, please select the overnight or 2-Day option, and provide the tracking number and notifications to my aforementioned email address; - If you are sending a wire or ACH, please specify which electronic funds transfer you are requesting along with the confirmation numbers at the time of transaction. Please submit your payment with a copy of this invoice to the following address: Agency for Health Care Administration Medicaid Program Finance Attn: Supplemental Payments 2727 Mahan Drive Building 3, Mail Stop 23 Tallahassee, FL 32308 Should you have questions regarding this matter or need technical assistance, please contact me at (850) 412-4109. Sincerely, E U Kristin Sokoloski Acting Bureau Chief 2727 Mahan Drive • Mail Stop #23 ,;E Facebook.com/AHCAFIorida Tallahassee, FL 32308 Youtube.com/AHCAFIorida AHCA.MyFlorida.com �t�l Twitter.com/AHCA_FL SIideShare.net/AHCAFIorida Packet Pg. 854