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Agenda 09/10/2024 Item #16D11 (Resolution- Support of area hospitals that provide services to the low-income citizens of Collier County)09/ 10/2024 EXECUTIVE SUMMARY Recommendation to approve a Resolution to authorize continued participation in the Local Provider Participation Fund for the Directed Payment Program and Graduate Medical Education Program, which will be solely funded by assessments on Collier County hospital -owned property or property used as a hospital in an amount not to exceed $12,654,900, authorize the County Manager to sign the Directed Provider Payment Letter of Agreement in the amount of $10,141,128 and the forthcoming Graduate Medical Education Program Letter of Agreement in an estimated amount of $2,786,495 with the Agency for Health Care Administration for an estimated total not to exceed $13,194,849 and authorize the necessary Budget Amendments. OBJECTIVE: To enact a resolution in support of area hospitals that provide health services to the low-income citizens of Collier County. CONSIDERATIONS: The County has participated in the State of Florida's Agency for Health Care Administration (AHCA) Intergovernmental Transfer Program (IGT). 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 FY21 and is known as the Local Provider Participation Fund (LPPF), which includes the Directed Payment Program (DPP) and the Graduate Medical Education Program (GME). 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 LPPF. This program is available to hospitals providing inpatient and outpatient services to Medicaid -managed care enrollees. It is the intent of the LPPF to offset hospitals' Medicaid shortfalls and improve the quality of care provided to the Florida Medicaid population. On June 22, 2021, the Board 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, 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 (Agenda item 16.D.3). Following the passage of Ordinance 2021-23, the Board subsequently approved participation in the program in FY22 on September 27, 2022 (Agenda Item #16.D.5), as well as for FY23 on September 26, 2023 (Agenda Item #16.D.7). At the request of the hospitals annually, the County will impose a non -ad valorem assessment upon real property owned or used by the hospitals to help fund the non-federal share of the State's Medicaid Program. This assessment will provide additional funding for Medicaid payments to close revenue shortfalls associated with the program. Leveraging additional federal support through the DPP and GME programs will directly benefit the services delivered to Medicaid -eligible persons and support their ability to provide critical health care programs. It is necessary to continue the LPPF program to ensure that the hospitals will have the opportunity to secure all funds available in the upcoming state fiscal year. The proposed resolution will enable the County to levy a uniform non -ad valorem special assessment in compliance with 42 C.F.R. 433.68(d). The assessment shall be fairly and reasonably apportioned among each of the hospital's properties within the County limits. Annually, 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 Packet Pg. 1025 09/ 10/2024 to be funded by the assessment. The assessment shall constitute a lien upon the assessed properties. Revenue generated by the proposed assessment shall be held in a separate account called the Local Provider Participation Fund (LPPF) and will be used only to: (1) provide 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 the Ordinance, as further specified in the resolution. At the recommendation of the hospitals, the Local Provider Participation Fund Special assessment for FY 2024 will be 1.18% of net patient revenue and will collect a maximum of $12,654,900 from participating hospitals. This amount, plus the carryforward balance from prior LPPF special assessments, less $150,000 in administrative expenses, will be submitted to AHCA. Budget Amendments may also be necessary during the year to shift approximately $539,949 of program -specific reserves and additional interest to reach a maximum potential disbursement identified in the Letters of Agreement. The DPP and GME Letters of Agreement between Collier County and AHCA permit an IGT in an amount not to exceed $13,194,849. If at the end of the Fiscal Year, additional amounts remain in the LPPF, the Board is authorized to roll funds over to or make a refund to assessed properties in proportion to amounts paid in during the Fiscal Year. Pursuant to section 197.3631, Florida Statutes, the alternative method of collection shall not require the tax collector or property appraiser to perform those services as provided for in sections 197.3632 and 197.3635, Florida Statutes. If this item is approved, the Tax Collector and Property Appraiser have no responsibilities under the alternative assessment process that is proposed. Both offices have expressed that they have no objection to the County's participation in the program. DPP and GME Local Intergovernmental Transfers Program / Amount State Fiscal Year 2024-2025 LPPF DPP and an estimated GME Assessment $12,654,900 Total LOA Funding (not to exceed) $13,194,849 FISCAL IMPACT: The assessment of 1.18% of net patient revenue enacted by the resolution will take hospital funds collected through a non -ad valorem assessment and direct those dollars to the AHCA to fund the non-federal share of the State's Medicaid Program, including the Medicaid Hospital Direct Payment Program and Graduate Medical Education Program. This funding structure ultimately results in enhanced funding returned to the hospitals for the Medicaid shortfall and physician training. The information currently available suggests the maximum assessment collected this year will be $12,654,900 from participating hospitals. The collected assessment will be transmitted to AHCA and will not exceed the actual amount of assessment dollars received by the County less administrative costs. Hospital name Assessment Amount NCH Baker Hospital $7,997,429 Physicians Regional $ 4,466,877 Encompass Health Rehabilitation $58,257 The Willough at Naples $132,337 $12,654,900 Relative to budget administration, FY25 Budget Amendments are necessary to establish a budget within Local Provider Participation Fund (1130). The budget will include revenue of $12,654,900 for receipt of the FY24 assessments paid by the hospitals. The Direct Payment Program and Graduate Medical Education letters of Agreement between Collier County and State of Florida AHCA however permits an IGT in an amount not to exceed the total of $13,194,849. In addition, a FY25 Budget Amendment is required to recognize carryforward in the approximate amount of $539,949. Packet Pg. 1026 16.D.11 09/ 10/2024 GROWTH MANAGEMENT IMPACT: There is no Growth Management impact. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for Board action. -CJS RECOMMENDATION: To enact a resolution to authorize continued participation in the Local Provider Participation Fund for the Directed Payment Program and Graduate Medical Education Program. These programs will be solely funded by assessments on Collier County hospital -owned property or property used as a hospital in an amount not to exceed $12,654,900. Authorize the County Manager to sign the Directed Provider Payment Letter of Agreement in the amount of $10,141,128 and the forthcoming Graduate Medical Education Program Letter of Agreement in an estimated amount of $2,786,495 with the Agency for Health Care Administration for an estimated total not to exceed $13,194,849 and authorize the necessary Budget Amendments. Prepared By: Carolyn Noble, Grants Coordinator, Community and Human Services Division ATTACHMENT(S) 1.42 CFR § 433.68 - Permissible health care -related taxes. _ Electronic Code of Federal Regulations (e-CFR) _ US Law _ LII _ Legal Information Institute (PDF) 2. ES 9.26.23 (PDF) 3. ES 9.27.22 16.D.5. (PDF) 4. ordinance 2021-23 (PDF) 5. Resolution 2021-197 (PDF) 6. Resolution 2022-149 (PDF) 7. Resolution 2023-170 (PDF) 8.2024 Resolution CAO appvd (PDF) 9. LoA for CM CAO appvd (PDF) 10. Affidavit for Ad (PDF) 11. ES 9.28.21 16.D.3. (PDF) Packet Pg. 1027 16.D.11 09/10/2024 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.11 Doe ID: 29806 Item Summary: Recommendation to approve a Resolution to authorize continued participation in the Local Provider Participation Fund for the Directed Payment Program and Graduate Medical Education Program, which will be solely funded by assessments on Collier County hospital -owned property or property used as a hospital in an amount not to exceed $12,654,900, and authorize the County Manager to sign the Directed Provider Payment Letter of Agreement in the amount of $10,141,128 and the forthcoming Graduate Medical Education Program Letter of Agreement in an estimated amount of $2,786,495 with the Agency for Health Care Administration for an estimated total not to exceed $13,194,849 and authorize the necessary Budget Amendments. Meeting Date: 09/10/2024 Prepared by: Title: — Community & Human Services Name: Carolyn Noble 08/27/2024 11:05 AM Submitted by: Title: Manager - Federal/State Grants Operation — Community & Human Services Name: Kristi Sonntag 08/27/2024 11:05 AM Approved By: Review: Operations & Veteran Services Carolyn Noble OVS Director Review Public Services Department Carolyn Noble Level 1 Department Review Community & Human Services Kristi Sonntag CHS Review Corporate Compliance and Continuous Improvement Megan Gaillard County Attorney's Office Office of Management and Budget County Attorney's Office Public Services Department Office of Management and Budget County Manager's Office Board of County Commissioners Carly Sanseverino CAO Reviewer Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Tanya Williams PSD Department Head Review Blanca Aquino Luque OMB Reviewer Amy Patterson Level 4 County Manager Review Geoffrey Willig Meeting Pending Skipped 08/27/2024 9:50 AM Skipped 08/27/2024 9:50 AM Completed 08/27/2024 4:16 PM Additional Reviewer Completed 08/30/2024 11:23 AM Completed 09/04/2024 9:19 AM Completed 09/04/2024 9:27 AM Completed 09/04/2024 10:03 AM Completed 09/04/2024 11:45 AM Completed 09/04/2024 1:07 PM Completed 09/04/2024 2:19 PM 09/10/2024 9:00 AM Packet Pg. 1028 8/21/24, 12:52 PM 42 CFR § 433.68 - Permissible health care -related taxes. I Electronic Code of Federal Regulations (e-CFR) I US Law I L 16.D.11.a LII > Electronic Code of Federal Regulations (e-CFR) > Title 42—Public Health > CHAPTER IV —CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES > SUBCHAPTER C—MEDICAL ASSISTANCE PROGRAMS > PART 433—STATE FISCAL ADMINISTRATION > Subpart B—General Administrative Requirements State Financial Participation > § 433.68 Permissible health care -related taxes. 42 CFR § 433.68 - Permissible health care -related taxes. CFR Table of Popular Names § 433.68 Permissible health care -related taxes. (a) General rule. A State may receive health care -related taxes, without a reduction in FFP, only in accordance with the requirements of this section. (b) Permissible health care -related taxes. Subject to the limitations specified in § 433.70, a State may receive, without a reduction in FFP, health care -related taxes if all of the following are met: (1) The taxes are broad based, as specified in paragraph (c) of this section; (2) The taxes are uniformly imposed throughout a jurisdiction, as specified in paragraph (d) of this section; and (3) The tax program does not violate the hold harmless provisions specified in paragraph (f) of this section. (c) Broad based health care -related taxes. https://www.law.cornelI.edu/cfr/text/42/433.68 I Packet Pg. 1029 8/21/24, 12:52 PM 42 CFR § 433.68 - Permissible health care -related taxes. I Electronic Code of Federal Regulations (e-CFR) I US Law I L 16.D.11.a (1) A health care -related tax will be considered to be broad based if the tax is imposed on at least all health care items or services in the class or providers of such items or services furnished by all non -Federal, non-public providers in the State, and is imposed uniformly, as specified in paragraph (d) of this section. (2) If a health care -related tax is imposed by a unit of local government, the tax must extend to all items or services or providers (or to all providers in a class) in the area over which the unit of government has jurisdiction. (3) A State may request a waiver from CMS of the requirement that a tax program be broad based, in accordance with the procedures specified in § 433.72. Waivers from the uniform and broad -based requirements will automatically be granted in cases of variations in licensing and certification fees for providers if the amount of such fees is not more than $1,000 annually per provider and the total amount raised by the State from the fees is used in the administration of the licensing or certification program. (d) Uniformly imposed health care -related taxes. A health care -related tax will be considered to be imposed uniformly even if it excludes Medicaid or Medicare payments (in whole or in part), or both; or, in the case of a health care -related tax based on revenues or receipts with respect to a class of items or services (or providers of items or services), if it excludes either Medicaid or Medicare revenues with respect to a class of items or services, or both. The exclusion of Medicaid revenues must be applied uniformly to all providers being taxed. (1) A health care -related tax will be considered to be imposed uniformly if it meets any one of the following criteria: (i) If the tax is a licensing fee or similar tax imposed on a class of health care services (or providers of those health care items or services), the tax is the same amount for every provider furnishing those items or services within the class. (ii) If the tax is a licensing fee or similar tax imposed on a class of health care items or services (or providers of those items or services) on the basis of the number of beds (licensed or otherwise) of the provider, the amount of the tax is the same for each bed of each provider of those items or services in the class. (iii) If the tax is imposed on provider revenue or receipts with respect to a class of items or services (or providers of those health care items or services), the tax is imposed at a uniform rate for all services (or providers of those items or services) in the class on all the gross revenues or receipts, or on net operating revenues relating to the provision of all items or services in the State, unit, or jurisdiction. Net operating revenue means gross charges of facilities less any deducted amounts for bad debts, charity care, and payer discounts. https://www.law.cornell.edu/cfr/text/42/433.68 I Packet Pg. 1030 8/21/24, 12:52 PM 42 CFR § 433.68 - Permissible health care -related taxes. I Electronic Code of Federal Regulations (e-CFR) I US Law I L 16.D.11.a (iv) The tax is imposed on items or services on a basis other than those specified in paragraphs (d)(1) (i) through (iii) of this section, e.g., an admission tax, and the State establishes to the satisfaction of the Secretary that the amount of the tax is the same for each provider of such items or services in the class. J, (2) A tax imposed with respect to a class of health care items or services will not be considered to be imposed uniformly if it meets either one of the following two criteria: (i) The tax provides for credits, exclusions, or deductions which have as its purpose, or results in, the return to providers of all, or a portion, of the tax paid, and it results, directly or indirectly, in a tax program in which — (A) The net impact of the tax and payments is not generally redistributive, as specified in paragraph (e) of this section; and (B) The amount of the tax is directly correlated to payments under the Medicaid program. (ii) The tax holds taxpayers harmless for the cost of the tax, as described in paragraph (f) of this section. (3) If a tax does not meet the criteria specified in paragraphs (d)(1)(i) through (iv) of this section, but the State establishes that the tax is imposed uniformly in accordance with the procedures for a waiver specified in § 433.72, the tax will be treated as a uniform tax. (e) Generally redistributive. A tax will be considered to be generally redistributive if it meets the requirements of this paragraph. If the State desires waiver of only the broad -based tax requirement, it must demonstrate compliance with paragraph (e)(1) of this section. If the State desires waiver of the uniform tax requirement, whether or not the tax is broad -based, it must demonstrate compliance with paragraph (e)(2) of this section. (1) Waiver of broad -based requirement only. This test is applied on a per class basis to a tax that is imposed on all revenues but excludes certain providers. For example, a tax that is imposed on all revenues (including Medicare and Medicaid) but excludes teaching hospitals would have to meet this test. This test cannot be used when a State excludes any or all Medicaid revenue from its tax in addition to the exclusion of providers, since the test compares the proportion of Medicaid revenue being taxed under the proposed tax with the proportion of Medicaid revenue being taxed under a broad -based tax. (i) A State seeking waiver of the broad -based tax requirement only must demonstrate that its proposed tax plan meets the requirement that its plan is generally redistributive by: https://www.law.cornell.edu/cfr/text/42/433.68 Packet Pg. 1031 8/21/24, 12:52 PM 42 CFR § 433.68 - Permissible health care -related taxes. I Electronic Code of Federal Regulations (e-CFR) I US Law I L 16.D.11.a (A) Calculating the proportion of the tax revenue applicable to Medicaid if the tax were broad based and applied to all providers or activities within the class (called 131); (B) Calculating the proportion of the tax revenue applicable to Medicaid under the tax program for which the State seeks a waiver (called P2); and (C) Calculating the value of P1 /P2. (ii) If the State demonstrates to the Secretary's satisfaction that the value of P1 /P2 is at least 1, CMS will automatically approve the waiver request. (iii) If a tax is enacted and in effect prior to August 13, 1993, and the State demonstrates to the Secretary's satisfaction that the value of P1 /P2 is at least 0.90, CMS will review the waiver request. Such a waiver will be approved only if the following two criteria are met: (A) The value of P1/P2 is at least 0.90; and (B) The tax excludes or provides credits or deductions only to one or more of the following providers of items and services within the class to be taxed: (1) Providers that furnish no services within the class in the State; (2) Providers that do not charge for services within the class; (3) Rural hospitals (defined as any hospital located outside of an urban area as defined in § 412.62(f)(1)(ii) of this chapter); (4) Sole community hospitals as defined in § 412.92(a) of this chapter; (5) Physicians practicing primarily in medically underserved areas as defined in section 1302(7) of the Public Health Service Act; (6) Financially distressed hospitals if: (i) A financially distressed hospital is defined by the State law; (ii) The State law specifies reasonable standards for determining financially distressed hospitals, and these standards are applied uniformly to all hospitals in the State; and (iii) No more than 10 percent of nonpublic hospitals in the State are exempt from the tax; (7) Psychiatric hospitals; or (8) Hospitals owned and operated by HMOs. https://www.law.cornell.edu/cfr/text/42/433.68 I Packet Pg. 1032 8/21/24, 12:52 PM 42 CFR § 433.68 - Permissible health care -related taxes. I Electronic Code of Federal Regulations (e-CFR) I US Law I L 16.D.11.a (iv) If a tax is enacted and in effect after August 13, 1993, and the State demonstrates to the Secretary's satisfaction that the value of P1 /P2 is at least 76 0.95, CMS will review the waiver request. Such a waiver request will be approved 0 only if the following two criteria are met: (A) The value of P1/P2 is at least 0.95; and (B) The tax complies with the provisions of § 433.68(e)(1)(iii)(B). (2) Waiver of uniform tax requirement. This test is applied on a per class basis to all taxes that are not uniform. This includes those taxes that are neither broad based (as specified in § 433.68(c)) nor uniform (as specified in § 433.68(d)). (i) A State seeking waiver of the uniform tax requirement (whether or not the tax is broad based) must demonstrate that its proposed tax plan meets the requirement that its plan is generally redistributive by: (A) Calculating, using ordinary least squares, the slope (designated as (B) (that is. the value of the x coefficient) of two linear regressions, in which the dependent variable is each provider's percentage share of the total tax paid by all taxpayers during a 12-month period, and the independent variable is the taxpayer's "Medicaid Statistic". The term "Medicaid Statistic" means the number of the provider's taxable units applicable to the Medicaid program during a 12- month period. If, for example, the State imposed a tax based on provider charges, the amount of a provider's Medicaid charges paid during a 12-month period would be its "Medicaid Statistic". If the tax were based on provider inpatient days, the number of the provider's Medicaid days during a 12-month period would be its "Medicaid Statistic". For the purpose of this test, it is not relevant that a tax program exempts Medicaid from the tax. (B) Calculating the slope (designated as 131) of the linear regression, as described in paragraph (e)(2)(i) of this section, for the State's tax program, if it were broad based and uniform. (C) Calculating the slope (designated as 132) of the linear regression, as described in paragraph (e)(2)(i) of this section, for the State's tax program, as proposed. (ii) If the State demonstrates to the Secretary's satisfaction that the value of B1 /132 is at least 1, CMS will automatically approve the waiver request. (iii) If the State demonstrates to the Secretary's satisfaction that the value of B1 /B2 is at least 0.95, CMS will review the waiver request. Such a waiver will be approved only if the following two criteria are met: (A) The value of 131/132 is at least 0.95; and https://www.law.cornell.edu/cfr/text/42/433.68 I Packet Pg. 1033 8/21/24, 12:52 PM 42 CFR § 433.68 - Permissible health care -related taxes. I Electronic Code of Federal Regulations (e-CFR) I US Law I L 16.D.11.a (B) The tax excludes or provides credits or deductions only to one or more of the following providers of items and services within the class to be taxes: (1) Providers that furnish no services within the class in the State; (2) Providers that do not charge for services within the class; (3) Rural hospitals (defined as any hospital located outside of an urban area as defined in § 412.62(f)(1)(ii) of this chapter; (4) Sole community hospitals as defined in § 412.92(a) of this chapter; (5) Physicians practicing primarily in medically underserved areas as defined in section 1302(7) of the Public Health Service Act; (6) Financially distressed hospitals if: (i) A financially distressed hospital is defined by the State law; (ii) The State law specifies reasonable standards for determining financially distressed hospitals, and these standards are applied uniformly to all hospitals in the State; and (iii) No more than 10 percent of nonpublic hospitals in the State are exempt from the tax; (7) Psychiatric hospitals; or (8) Providers or payers with tax rates that vary based exclusively on regions, but only if the regional variations are coterminous with preexisting political (and not special purpose) boundaries. Taxes within each regional boundary must meet the broad -based and uniformity requirements as specified in paragraphs (c) and (d) of this section. (iv) A 131 /132 value of 0.70 will be applied to taxes that vary based exclusively on regional variations, and enacted and in effect prior to November 24, 1992, to permit such variations. (fl Hold harmless. A taxpayer will be considered to be held harmless under a tax program if any of the following conditions applies: (1) The State (or other unit of government) imposing the tax provides for a direct or indirect non -Medicaid payment to those providers or others paying the tax and the payment amount is positively correlated to either the tax amount or to the difference between the Medicaid payment and the tax amount. A positive correlation includes any positive relationship between these variables, even if not E consistent over time. a https://www.law.cornell.edu/cfr/text/42/433.68 Packet Pg. 1034 8/21/24, 12:52 PM 42 CFR § 433.68 - Permissible health care -related taxes. I Electronic Code of Federal Regulations (e-CFR) I US Law I L 16.D.11.a (2) All or any portion of the Medicaid payment to the taxpayer varies based only on the tax amount, including where Medicaid payment is conditional on receipt of the tax amount. (3) The State (or other unit of government) imposing the tax provides for any direct or indirect payment, offset, or waiver such that the provision of that payment, offset, or waiver directly or indirectly guarantees to hold taxpayers harmless for all or any portion of the tax amount. (A) An indirect guarantee will be determined to exist under a two prong "guarantee" test. If the health care -related tax or taxes on each health care class are applied at a rate that produces revenues less than or equal to 6 percent of the revenues received by the taxpayer, the tax or taxes are permissible under this test. The phrase "revenues received by the taxpayer" refers to the net patient revenue attributable to the assessed permissible class of health care items or services. However, for the period of January 1, 2008 through September 30, 2011, the applicable percentage of net patient service revenue is 5.5 percent. Compliance in State fiscal year 2008 will be evaluated from January 1, 2008 through the last day of State fiscal year 2008. Beginning with State fiscal year 2009 the 5.5 percent tax collection will be measured on an annual State fiscal year basis. (B) When the tax or taxes produce revenues in excess of the applicable percentage of the revenue received by the taxpayer, CMS will consider an indirect hold harmless provision to exist if 75 percent or more of the taxpayers in the class receive 75 percent or more of their total tax costs back in enhanced Medicaid payments or other State payments. The second prong of the indirect hold harmless test is applied in the aggregate to all health care taxes applied to each class. If this standard is violated, the amount of tax revenue to be offset from medical assistance expenditures is the total amount of the taxpayers' revenues received by the State. (ii) [Reserved] [57 FIR 55138, Nov. 24, 1992, as amended at 58 FIR 43181, Aug. 13, 1993; 62 FIR 53572, Oct. 15, 1997; 73 FIR 9698, Feb. 22, 2008] https://www.law.cornell.edu/cfr/text/42/433.68 I Packet Pg. 1035 8/21 /24, 12:52 PM 42 CFR § 433.68 - Permissible health care -related taxes. I Electronic Code of Federal Regulations (e-CFR) I US Law I L 16.D.11.a it CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use https://www.law.cornell.edu/cfr/text/42/433.68 I Packet Pg. 1036 8/21/24, 12:52 PM 42 CFR § 433.68 - Permissible health care -related taxes. I Electronic Code of Federal Regulations (e-CFR) I US Law I L 16.D.11.a Privacy https://www.law.cornell.edu/cfr/text/42/433.68 I Packet Pg. 1037 16.D.11.b 09/26/2023 EXECUTIVE SUMMARY Recommendation to enact a resolution to authorize continued participation in the Local Provider Participation Fund for the Directed Payment Program and Graduate Medical Education Program. These programs will be solely funded by assessments on Collier County hospital -owned property or property used as a hospital in an amount not to exceed $10,657,446. Authorize the County Manager to sign a Letters of Agreement in an amount not to exceed the total of $13,205,859.81 with the Agency for Health Care Administration and approve necessary Budget Amendments. OBJECTIVE: To enact a resolution in support of area hospitals that provide health services to the low-income citizens of Collier County. Authorize the County Manager to sign the Agency for Health Care Administration (AHCA) Letter of Agreement and authorize necessary Budget Amendments. 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 historically provided 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 FY21 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, Collier County and fourteen (14) other Florida counties created assessments to fund DPP. Another six (6) counties created assessment for DPP in 2022. Florida also has established a program to support Graduate Medical Education (GME) for the next generation of physicians. Collier County's hospital assessment has evolved to generate funds to provide the nonfederal share for this program, in addition to DPP. On June 22, 2021, the Board of County Commissioners (Board) adopted Ordinance 2021-23, enabling the County to levy a uniform non -ad valorem special assessment, which is fairly and reasonably apportioned among the w Hospitals' property interests within the County's jurisdictional limits, for the purpose of establishing and N maintaining a system of funding for IGTs to support the non-federal share of Medicaid payments. On September M 28, 2021, the Board approved Resolution 2021-197, which established the 2021 Local Provider Participation Fund ri Special Assessment. The FY 2021 assessment of 1.11% of net patient revenue was collected and when matched by N CD the federal matchingprogram, the Local Provider Participation Fund contributed $12 248 191 to support W low- p :�' P � pp income patient treatment in Collier County. w c On September 27, 2022, the Board approved Resolution 2022-149, which established the 2022 Local Provider E Participation Fund Special Assessment. The FY 2022 assessment of .69% of net patient revenue was collected and when matched by the federal matching program, the Local Provider Participation Fund contributed $15,187,944 to a support low-income patient treatment in Collier County. At the recommendation of the hospitals, the Local Provider Participation Fund Special assessment for FY 2023 will be 1.09% of net patient revenue and will collect a maximum of $10,657,446 from participating Hospitals. This amount, plus the carryforward balance from prior LPPF special assessments, less $150,000 in administrative expenses will be submitted to AHCA. Budget Amendments may also be necessary during the year to shift Packet Pg. 1038 16.D.11.b 09/26/2023 approximately $2,485,147 of program -specific reserves disbursement identified in the Letters of Agreement. Education Letters of Agreement between Collier County amount not to exceed the total of $13,205,859.81. and additional interest to reach a maximum potential The Direct Payment Program and Graduate Medical and the State of Florida AHCA permit an IGT in an Collier County hospitals are supportive of the assessment and have requested that the program be continued. In order to continue participating, the County must establish a 2023 special assessment rate via resolution. The proposed resolution supports both the DPP and GME programs. At the request of the hospitals annually, the County will impose a non -ad valorem assessment upon real property owned or used by the hospitals to help fund the non-federal share of the State's Medicaid Program. This assessment will provide additional funding for Medicaid payments to close revenue shortfalls associated with the program. Leveraging additional federal support through the DPP and GME program will directly benefit the services delivered to Medicaid -eligible persons and support their ability to provide critical health care programs. It is necessary to establish the LPPF program to ensure that the hospitals will have the opportunity to secure all funds available in the upcoming state fiscal year. The proposed resolution will enable the County to levy a uniform non -ad valorem special assessment in compliance with 42 C.F.R. 433.68(d). The assessment shall be fairly and reasonably apportioned among each of the hospital's properties within the County limits. Annually, 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. The assessment shall constitute a lien upon the assessed properties. Revenue generated by the proposed assessment shall be held in a separate account called the Local Provider Participation Fund (LPPF) and will be used only to: (1) provide 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 forthcoming assessment resolution. If at the end of the Fiscal Year, additional amounts remain in the Local Provider Participation Fund, the Board is authorized to roll funds over to or make a refund to assessed properties in proportion to amounts paid in during the Fiscal Year. If this item is approved, the Tax Collector and Property Appraiser have no responsibilities under the alternative assessment process that is proposed. The alternative method of collection pursuant to F.S. 197.3631 states this method shall not require the tax collector or property appraiser to perform those services as provided for in F.S. 197.3632 and 197.3635. Pursuant to Section 197.3632 additional authority is granted to local governments to impose and collect non -ad -valorem assessments supplemental to the home rule powers. In future years County staff may elect to recommend that the Board update the ordinance and adopt a future resolution to implement a uniform assessment process that involves the services of the Tax Collector and Property Appraiser. The Tax Collector and Property Appraiser have previously been coordinated with and they have no objection to the adoption of the program. DPP Local Intergovernmental Transfers Program / Amount State Fiscal Year 2023-2024 LPPF DPP and GME Assessment $10,657,446 Total LOA Funding (not to exceed) $13,205,859.81 FISCAL IMPACT: The assessment of 1.09% of net patient revenue enacted by the resolution will take hospital funds collected through a non -ad valorem assessment and direct those dollars to the AHCA to fund the non-federal share of the State's Medicaid Program, including the Direct Payment Program and Graduate Medical Education Program. This funding structure ultimately results in enhanced funding returned to the hospitals for the Medicaid shortfall and for physician training. The information currently available suggests the maximum assessment M N co N 0 W w c m E z c� a Packet Pg. 1039 16.D.11.b 09/26/2023 collected this year will be $10,657,446 from participating hospitals. The collected assessment will be transmitted to AHCA and will not exceed the actual amount of assessment dollars received by the County less administrative costs. Hospital name Assessment Amount NCH Baker Hospital $6,642,259 Physicians Regional $3,855,801 The Willough at Naples $159,386 $10,657,446 Relative to budget administration, FY24 Budget Amendments are necessary to establish a budget within Local Provider Participation Fund (1130). The budget will include revenue of $10,657,446 for receipt of the FY23 assessments paid by the hospitals as well as associated expenses of $10,507,446 for the remittance of program funds to AHCA. The Direct Payment Program letter of Agreement between Collier County and State of Florida AHCA however permits an IGT in an amount not to exceed the total of $13,205,859.81. In addition, a FY24 Budget Amendment is required to recognize carryforward in the approximate amount of $413,600. GROWTH MANAGEMENT IMPACT: There is no Growth Management impact. LEGAL CONSIDERATIONS: The documents have an effective date of September 26, 2023. This item is approved as to form and legality and requires a majority vote for Board action. -JAK RECOMMENDATION: To enact a resolution to authorize continued participation in the Local Provider Participation Fund for the Directed Payment Program and the Graduate Medical Education Program. Authorize the County Manager to sign the AHCA Letter of Agreement and approve Budget Amendments as necessary throughout FY24. Prepared By: Jeffrey Newman, Manager - Financial Operations, Operations & Veterans Services Division ATTACHMENT(S) 1.2023 LPPF Resolution - JAK signed (PDF) 2. 1. Ordinance 2021-23 (PDF) 3. 1. Resolution 2021-197 (PDF) 4. Resolution 2022-149 (PDF) 5. Year 3 Presentation —Collier (PPTX) 6. legal ad - Agenda ID 26410 (PDF) 7. DPP LOA FY23-24 - COA stamped (PDF) 8. GME LOA FY23-24 - CAO stamped (PDF) a Packet Pg. 1040 16.D.11.b 09/26/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.7 Doe ID: 26410 Item Summary: Recommendation to enact a resolution to authorize continued participation in the Local Provider Participation Fund for the Directed Payment Program and Graduate Medical Education Program. These programs will be solely funded by assessments on Collier County hospital -owned property or property used as a hospital in an assessment amount of $10,657,446. Authorize the County Manager to sign a Letters of Agreement in an amount not to exceed the total of $13,205,859.81 with the Agency for Health Care Administration and approve necessary Budget Amendments. Meeting Date: 09/26/2023 Prepared by: Title: — Operations & Veteran Services Name: Jeff Newman 08/17/2023 8:11 AM Submitted by: Title: — Operations & Veteran Services Name: Jeff Newman 08/17/2023 8:11 AM Approved By: Review: Community & Human Services Kristi Sonntag Additional Reviewer Operations & Veteran Services Jeff Weir OVS Director Review Community & Human Services Kim Frazier Additional Reviewer Public Services Department Todd Henry PSD Level 1 Reviewer Grants Erica Robinson Level 2 Grants Review Operations & Veteran Services Jeff Weir Director Review Public Services Department Tanya Williams PSD Department Head Review Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Grants Therese Stanley Additional Reviewer Office of Management and Budget Blanca Aquino Luque Additional Reviewer County Manager's Office Dan Rodriguez Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 08/29/2023 3:51 PM Completed 08/31/2023 3:16 PM Completed 09/01/2023 12:44 PM Completed 09/05/2023 9:43 AM Completed 09/05/2023 11:42 AM Completed 09/05/2023 12:25 PM Completed 09/12/2023 11:01 AM Completed 09/12/2023 11:14 AM Completed 09/13/2023 10:17 AM Completed 09/14/2023 8:46 AM Completed 09/19/2023 8:49 AM Completed 09/19/2023 1:40 PM 09/26/2023 9:00 AM .r a Packet Pg. 1041 16.D.11.c 09/27/2022 EXECUTIVE SUMMARY Recommendation to enact a resolution to authorize continued participation in the Local Provider Participation Fund for the Directed Payment Program and commence participation in the Graduate Medical Education Program. These programs will be solely funded by assessments on Collier County hospitals owned property or property used as a hospital in an amount not to exceed $5,578,033. Authorize the County Manager to sign Letter of Agreement in an amount not to exceed the total of $7,231,349 with the Agency for Health Care Administration and approve necessary Budget Amendments. OBJECTIVE: To enact a resolution in support of area hospitals that provide health services to the low- income citizens of Collier County. Authorize the County Manager to sign the AHCA Letter of Agreement and authorize necessary Budget Amendments. CONSIDERATIONS: The County has participated in the State's Intergovernmental Transfer Program (IGT) with the Agency for Health Care Administration (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 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 FY 21 Florida Legislative session, Governor DeSantis, with the full support of the House and Senate, approved the establishment of the Directed Payment Program (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 Florida counties. 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, 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 of Commissioners of Collier County 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. AHCA has notified the County that the LPPF DPP assessment for FY 2022 will be .69% of net patient revenue and will collect a maximum of $5,578,033 from participating Hospitals. This amount minus $150,000 in administrative expenses will be submitted to AHCA. The Direct Payment Program letter of Agreement between Collier County and State of Florida AHCA however permits an IGT in an amount not to exceed the total of $7,231,349.00. Collier County hospitals are supportive of the DPP and have requested that the program be continued. This year, NCH led local efforts to use the assessment to fund the Graduate Medical Education Program. The Graduate Medical Education Program allows and provides funding to qualified participating hospitals involved in graduate medical education, paving the way for payments designed to prepare the next generation of healthcare providers in Florida. The hospitals are aware of the assessment process and have Packet Pg. 1042 16.D.11.c 09/27/2022 all agreed to participate. In order to participate, the County must establish a Local Provider Participation Fund (LPPF) and Graduate Medical Education (GME) Program via resolution. The proposed resolution supports the DPP and GME programs. At the request of the hospitals annually, the County will impose a non -ad valorem assessment upon real property owned or used by the hospitals to help fund the non-federal share of the State's Medicaid Program. This assessment will provide additional funding for Medicaid payments to close revenue shortfalls associated with the program. Leveraging additional federal support through the DPP and GME program will directly benefit the services delivered to Medicaid -eligible persons and support their ability to provide critical health care programs. It is necessary to establish the LPPF program to ensure that the hospitals will have the opportunity to secure all funds available in the upcoming state fiscal year. The proposed resolution will enable the County to levy a uniform non -ad valorem special assessment in compliance with 42 C.F.R. 433.68(d). The assessment shall be fairly and reasonably apportioned among each of the hospital's properties within the County limits. Annually, 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. The assessment shall constitute a lien upon the assessed properties. Revenue generated by the proposed assessment shall be held in a separate account called the Local Provider Participation Fund (LPPF) and will be used only to: (1) provide 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 forthcoming assessment resolution. If at the end of the Fiscal Year, additional amounts remain in the Local Provider Participation Fund, the Board is authorized to make a refund to assessed properties in proportion to amounts paid in during the Fiscal Year. If this item is approved, the Tax Collector and Property Appraiser have no responsibilities under the alternative assessment process that is proposed. The alternative method of collection pursuant to F.S. 197.3631 states this method shall not require the tax collector or property appraiser to perform those services as provided for in F.S. 197.3632 and 197.3635. Pursuant to Section 197.3632 additional authority is granted to local governments to impose and collect non -ad -valorem assessments supplemental to the home rule powers. In future years County staff may elect to recommend that the Board update the ordinance and adopt a future resolution to implement a uniform assessment process that involves the services of the Tax Collector and Property Appraiser. The Tax Collector and Property Appraiser have previously been coordinated with and they have no objection to the adoption of the program. DPP Local Intergovernmental Transfers Program / Amount State Fiscal Year 2022-2023 Year One DPP IGTs $7,231,349 Total Funding $7,231,349 FISCAL IMPACT: The assessment of .69% of net patient revenue enacted by the resolution will take hospital funds collected through a non -ad valorem assessment and direct those dollars to the Agency for Health Care Administration (AHCA) to fund the non-federal share of the State's Medicaid Program, including the Direct Payment Program and Graduate Medical Education Program. This funding structure ultimately results in enhanced funding returned to the hospitals. The information currently available suggests the maximum assessment collected will be $5,578,031.89 from participating hospitals. The collected assessment will be transmitted to AHCA and will not exceed the actual amount of assessment dollars received by the County less administrative costs. No more than $150,000 will be retained for administrative expenses. Packet Pg. 1043 09/27/2022 16.D.11.c Hospital name Assessment Amount NCH Baker Hospital $3,389,348 Physicians Regional $1,909,005 Landmark Hospital SW $162,663 The Willough at Naples $117,017 $5,578,033 Relative to budget administration, FY 23 budget amendments are necessary to establish budget within Local Provider Participation Fund (169). The budget will include a revenue of $5,578,033 for receipt of the FY 23 assessments paid by the hospitals as well as associated expenses of $5,428,033 for the remittance of FY 23 program funds to AHCA, and $150,000 for reimbursement of County administrative costs associated with the implementation of the assessment respectively. The Direct Payment Program letter of Agreement between Collier County and State of Florida AHCA however permits an IGT in an amount not to exceed the total of $7,231,349.00. In addition, a FY23 budget amendment is required to recognize carryforward in the amount of $2,662,000 and establish a reserve in kind. GROWTH MANAGEMENT IMPACT: There is no Growth Management impact. LEGAL CONSIDERATIONS: The documents have an effective date of September 27, 2022. This item is approved as to form and legality and requires a majority vote for Board action. - RTT RECOMMENDATION: To enact a resolution to authorize continued participation in the Local Provider Participation Fund for the Directed Payment Program and commence participation in the Graduate Medical Education Program. Authorize the County Manager to sign the AHCA Letter of Agreement and approve necessary Budget Amendments. Prepared By: Jeffrey Newman, Financial and Operational Support Manager, Operations & Veterans Services Division ATTACHMENT(S) 1. Resolution (CAO stamped) - agenda ID 23160 (PDF) 2. 1. Ordinance 2021-23 (PDF) 3. 1. Resolution 2021-197 (PDF) 4. Year 2 Presentation_ Collier (PPTX) 5. DPP _SFY 22-23_LOA(PDF) 6. legal ad - agenda ID 23160 (PDF) 7.Image_001 (PDF) 8. IGT questionnaire statewide DDP 9 19 2022 (XLSX) Packet Pg. 1044 16.D.11.c 09/27/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.13.5 Doe ID: 23160 Item Summary: Recommendation to enact a resolution to authorize continued participation in the Local Provider Participation Fund for the Directed Payment Program and commence participation in the Graduate Medical Education Program. These programs will be solely funded by assessments on Collier County hospitals owned property or property used as a hospital not to exceed $5,578,033. Authorize the County Manager to sign Letter of Agreement in an amount not to exceed the total of $7,231,349 with the Agency for Health Care Administration and provide necessary Budget Amendments Meeting Date: 09/27/2022 Prepared by: Title: — Operations & Veteran Services Name: Jeff Newman 08/31/2022 7:54 AM Submitted by: Title: — Operations & Veteran Services Name: Jeff Newman 08/31/2022 7:54 AM Approved By: Review: Operations & Veteran Services Jeff Newman Additional Reviewer Public Services Department Jeff Newman PSD Level 1 Reviewer Community & Human Services Kristi Sonntag Additional Reviewer Public Services Department Tanya Williams PSD Department Head Review Grants Erica Robinson Level 2 Grants Review County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Office of Management and Budget Laura Zautcke Level 3 OMB Gatekeeper Review Grants Therese Stanley Additional Reviewer Office of Management and Budget Christopher Johnson Additional Reviewer Community & Human Services Maggie Lopez Additional Reviewer County Attorney's Office Ronald Tomasko Additional Reviewer County Manager's Office Dan Rodriguez Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 08/31/2022 8:05 AM d M Completed 09/06/2022 2:52 PM 0 J Completed 09/06/2022 2:53 PM U 2 Completed 09/07/2022 11:45 AM Q Completed 09/07/2022 1:28 PM o 00 rn Completed 09/07/2022 2:11 PM N Completed 09/07/2022 2:58 PM Completed co 09/12/2022 12:42 PM r N Completed N 09/16/2022 10:50 AM ti N Completed 09/21/2022 8:40 AM CD N W Completed 09/21/2022 11:38 AM c m Completed 09/21/2022 3:12 PM E t 09/27/2022 9:00 AM t�v r a Packet Pg. 1045 16.D.11.d 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 1S 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. 1046 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. 1047 1ti.D.11.d 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. 1048 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. 10491 16.D.11.d 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. 1050 - 16.D.11.d 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. 1051 16.D.11.d 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. 1052 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. 1053 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. 1054 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�ement � tout recei•aed phis filing �O of J �l Sy peo�hY C Page 10 of 10 G M N N O N d V C R C L r_ m t U 2 r Q Packet Pg. 1055 16.D.11.d 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. 1056 16.D.11.e RESOLUTION NO. 2021— 197 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, the State of Florida (the '*State") received federal authority to establish the Statewide Medicaid Managed Care Hospital directed payment program (the "DPP") to offset hospitals' uncompensated Medicaid costs and improve quality of care provided to Florida's Medicaid population; and WHEREAS, Hospitals have asked Collier County (the "County") to impose 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 40 Packet Pg. 1057 16.D.11.e 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 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, leveraging additional federal support through the above -described IGTs to fund Medicaid payments to the Hospitals for health care services directly and specifically benefits the Hospitals' property interests and supports their continued ability to provide those services; 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 ,Lune 22, 2021. the Board of County Commissioners adopted Ordinance 2001-23, 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 CA Packet Pg. 1058 16.D.11.e otherwise defined herein or in the Ordinance, shall have the meanings below, unless the context otherwise requires. 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 officio Clerk to the Board, or other such person as may be duly authorized to act on such person's behalf. County means Collier County, Florida. Fiscal Year means the period commencing on October I 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 No 20021-23. Tax Collector means the Collier County Tax Collector. Section 2. Authority. Pursuant to 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 3 �C Packet Pg. 1059 16.D.11.e the County. Proceeds from the Assessment shall be used to benefit Assessed Properties through a directed payment program that will benefit the Assessed Properties for Local Services. 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: Provide to the Florida Agency for Health Care Administration the non-federal share for Medicaid managed care hospital directed 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 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) if requested to do so by the Assessed Properties, 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 1.11 % 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. 070 Packet Pg. 1060 16.D.11.e 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 statement that the Assessment constitutes a lien against assessed property and/or improvements equal in rank and dignity with the liens of all state, county, district 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. As required by §197.3631, Fla. Stat. 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. Severability. 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 281h day of September, 2021. ATTEST: CRYSTAL K. KINZEL, CLERK Attest as to Ch"A& UTY CL sirnitui,, only. Approved as to form and legE Jennifer A. Belpedio Assistant County Attorney BOARD OF COUNTY COMMISSIONERS COLLIER O TY, FLORID By: amo�ll PENNY TA OR, CHAIRPERSON m I, Crystal .1Cmzel, Cleof Courts-r. and for �oiiier C !unty [}� do hearby,::ertify ...at. the aoc,- a i, istrumnt is a true a— correct cop of :yen igina t in C l.lfer C�FjjorOa 6y Deputy Clerk Q Packet Pg. 1061 16.D.11.f 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, covcrs 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 U S_Activ e\ 118603232%V-1 Packet Pg. 1062 16.D.11.f 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. 2 U S_Adive11186032321V-1 Packet Pg. 1063 16.D.11.f 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 officio 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 l (f) 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 ACtiVM11860323ZV-1 Q C� Packet Pg. 1064 16.D.11.f 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. Timing 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 ActNe1118603232\V-1 Packet Pg. 1065 16.D.11.f statement that the Assessment constitutes alien against assessed property and/or improvements equal in rank and dignity with the liens of all state, county, district 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. Severability. 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"' day of September, 2022. BOARD OF COUNTY COMMISSIONERS ATTEST COLLIER COUNTY, FLORIDA CRYST , CLERK 4 BY: By: Willia M a Approval as t fo a legaht. 40 County Attorney V�_ U S_AdNe1118803232W-1 r I ~ �r Packet Pg. 1066 DocuSign Envelope ID: E3FFE20D-F565-4C4F-AC38-A33COD29C3C1 16.D.11.f Directed Payment Program Letter of Agreement THIS LETTER OF AGREEMENT (LOA) is made and entered into in duplicate on the 279 day of 2022, by and between Collier County (the "IGT Provider"') 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. 1067 DocuSign Envelope ID: E3FFE20D-F565-4C4F-AC3B-A33COD29C3C1 16.D.11.f 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 _DPP LOA_SFY 2022-23 Region 8 Packet Pg. 1068 DocuSign Envelope ID E3FFE20D-F565-4C4F-AC3B-A33COD29C3C1 16.D.11.f 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 _ 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. DcC : . SIGNED C' BY: NAME: Wilfam L. McDaniel, Jr., Chairman STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION SIGNED BY: NAME: TITLE: GAA:1/nA17 TITLE: DATE: y7/ZGZ DATE: ATTES P CRY ST EL,CLERK Approv1}�, BY: •. Jeffrey A. K ayeo AAtbrney k Collier County DPP LOA SFY 2022-23 Region 8 Packet Pg. 1069 RESOLUTION NO.2023 -1 70 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 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 123-GRC-0 1401/1810806/11 I OCNO Packet Pg. 1070 16.D.11.g 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, leveraging additional federal support through the above -described IGTs to fund Medicaid payments to the Hospitals for health care services directly and specifically benefits the Hospitals' property interests and supports their continued ability to provide those services; 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. [23-G RC-01401 / 1810806/ 11 �CA�E Packet Pg. 1071 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 officio Clerk to the Board, or other such person as may be duly 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 No. 2021-23, as codified in Chapter 126, Article VI of the Collier County Code of Ordinances. Tax Collector means the Collier County Tax Collector. Section 2. Authority. Pursuant to Article VIII, Section 1(f) 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 a directed payment program that will benefit the Assessed Properties for Local Services. [23-GRC-01401/1810806/1] 3 LCX Packet Pg. 1072 16.D.11.g 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 Scope, Basis, and Use. Funds generated from the Assessment shall be used only to: Provide to the Florida Agency for Health Care Administration the non-federal share for Medicaid payments, including the hospital directed payment program and graduate 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) if requested to do so by the Assessed Properties, 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 1.09% 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. Timing 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 123-G RC-01401 / 1810806/ 11 Packet Pg. 1073 16.D.11.g location at which payment will be accepted, (4) the date on which the Assessment is due, and (5) a statement that the Assessment constitutes a lien against assessed property and/or improvements equal in rank and dignity with the liens of all state, county, district or municipal taxes and other non -ad valorem assessments. No act of error or omission on the part of the Comptroller, Property Appraiser, "fax 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. As required by §197.3631, Fla. Stat., 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. Severability. 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 lorce 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 26th day of September, 2023. k " n ATTE T: Crystal R}, true 'lerk of Courts k7 B �y� cs a to halrmrl®eputy lerk sign turd cnly' P ;° i Approved sPto foL and lWlity: r Jeffrey A. Klatzkow, County Attorney f [23-GRC-01401/1810806/11 BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: /-------_. Rick LoCastro, Chairman Packet Pg. 1074 16.D.11.g [Attachment- Assessment Roll] MCD ID A I Organization I Facility Hospital Address Parcel # Rate Mandatory Payment 10314400 ICHS 11Physicians Regional Medical Center - Pi 6101 Pine Ride Rd., Naples, FL 34119 80670080001 1.09% NPR 5 3,855,801 1 10031500 INCH Healthcare System INCH Baker Hospital Downtown 1350 7th St. N, Naples, Ft 34102 14038880000 1.09% NPR 5 6,642,259 104063 [Oglethorpe IThe Willough at Naples 19001 Tamiami Trail East, Naples, fL 33862 551D0120000 1.09% NPR 5 159,386 County Phone Number: (239( 252-8999 BCC Address: Collier County Government (enter, 3299 Tamiami Trail East, Ste. 303, Naples, FL 34112 Ordinance Date: June 22, 2021 Resolution Date: September 26, 2023 Disability Contact: Collier County Facilities Management Division at (239( 252-8380 Mandatory Payments Due Date: Upon receipt of invoice 6 .1CAy! 123-GRC-01401 / 1810806/ 11 ` Packet Pg. 1075 16.D.11.g - I Graduate Medical Education Letter of Agreement THIS LETTER OF AGREEMENT (LOA) is made and entered into in duplicate on the day of�L2023, by and between Collier LPPF (the "IGT Provider') on behalf of Naples Community Hospital, and lheState of Florida, Agency for Health Care Administration (the "Agency"), for good and valuable consideration, the receipt and sufficiency of which is acknowledged. DEFINITIONS "Graduate Medical Education (GME)" is the term used for the Graduate Medical Education Startup Bonus Program, established to provide resources for the education and training of physicians in specialties that are in a statewide supply -and -demand deficit, as listed in the General Appropriations Act, Laws of Florida 2021-036. "Intergovernmental Transfers (IGTs)" means transfers of funds from a non -Medicaid governmental entity (e.g., counties, municipalities, hospital taxing districts, providers operated by state or local government) to the Medicaid agency. IGTs must be considered a bona fide donation pursuant to 42 CFR § 433.54. "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. A. GENERAL PROVISIONS 1. Per Senate Bill 2500, the General Appropriations Act of State Fiscal Year 2023-2024, passed by the 2023 Florida Legislature, the Collier LPPF and the Agency agree that the Collier LPPF will remit IGT funds to the Agency in an amount not to exceed the total of $1,910,450.46. The Collier LPPF and the Agency have agreed that these IGT funds will only be used in accordance with § 409.909, Florida Statutes (2021). 2. The Collier LPPF will return the signed LOA to the Agency no later than October 1, 2023, 3. The Collier LPPF will pay IGT funds to the Agency in an amount not to exceed the total of $1,910,450.46. The Collier LPPF will transfer payments to the Agency in the following manner: a. Per Florida Statute 409,908, annual payments for the months of July 2023 through June 2024 are due to the Agency no later than October 31, 2023, unlessan alternative plan is specifically approved by the agency. b. The Agency will bill the Collier LPPF when payment is due. 4. The Collier LPPF and the Agency agree that the Agency will maintain necessary records and supporting documentation applicable to the GME program covered by this LOA in accordance with public records laws and established retention schedules. Collier LPPF _GME LOA_SFY 2021-2022 T Packet Pg. 1076 16.D.11.g a. AUDITS AND RECORDS i. The Collier LPPF agrees to maintain books, records, and documents (including 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. The Collier LPPF 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. The Collier LPPF agrees to comply with public record laws as outlined in section 119.0701, Florida Statutes. b. RETENTION OF RECORDS i. The Collier LPPF 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 beretained 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. The Collier LPPF agrees to permit persons duly authorized by the Agency to inspect any records, papers, and documents of the Collier LPPF which are relevant to this LOA. d. ASSIGNMENT AND SUBCONTRACTS i. The Collier LPPF 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 Collier LPPF and the Agency agree that any modifications to this LOA shall bein the same form, namely the exchange of signed copies of a revised LOA. Collier LPPF _GME LOA_SFY 2021-2022 Q-0100 Packet Pg. 1077 16.D.11.g 1. The Collier LPPF 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 charity care supplemental payments in order to satisfy non -Medicaid, non -uninsured, and non-underinsured activities. 2. The Collier LPPF agrees the following provision shall be included in any agreements between the Collier LPPF 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." 3. This LOA covers the period of July 1, 2023, through June 30, 2024, and shall be terminated September 30, 2024, which includes the states certified forward period. 4. 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. Collier LPPF _GME LOA_SFY 2021-2022 Q C Packet Pg. 1078 16.D.11.g GME Local Intergovernmental Transfers Program / Amount State Fiscal Year 2023-2024 Estimated IGTs $1,910,450.46 Total Funding $1,910,450.46 IN WITNESS WHEREOF, the parties have caused this page Letter of Agreement to be executed by their undersigned officials as duly authorized. Collier LPPF STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION SIGNED � SIGNED BY: BY: NAME: TITLE: DATE: - t ! Z ) 12 UZ 3 NAME: Thomas Wallace TITLE: Deputy Director, Division Of Medicaid DATE: Collier LPPF _GME LOA_SFY 2021-2022 CD ti A N O N C O r 7 O N O r C O E t v R Q Packet Pg. 1079 16.D.11.g Directed Payment Program Letter of Agreement THIS LETTER OF AGREEMENT (LOA) is made and entered into in duplicate on the day of%k2023, by and between (the "Collier County LPPF") 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 Senate Bill 2500, the General Appropriations Act of State Fiscal Year 2023-2024, passed by the 2023 Florida Legislature, the Collier County LPPF and the Agency agree that the Collier County LPPF will remit IGT funds to the Agency in an amount not to exceed the total of $11,295,409.36. The Collier County LPPF and the Agency have agreed that these IGT funds will only be used for the DPP program. 2. The Collier County LPPF will return the signed LOA to the Agency. 3. The Collier County LPPF will pay IGT funds to the Agency in an amount not to exceed the total of $11,295,409.36. The Collier County LPPF will transfer payments to the Agency in the following manner: a. Per Florida Statute 409.908, annual payments for the months of July 2023 through June 2024 are due to the Agency no later than October 31, 2023, unless an alternative plan is specifically approved by the agency. b. The Agency will bill the Collier County LPPF when payment is due. 4. The Collier County LPPF 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. Collier County LPPF agrees to maintain books, records, and documents (including electronic storage media) pertinent to performance under this LOA in accordance Collier County LPPF_Region 8 _DPP LOA_SFY 2023-24 Packet Pg. 1080 16.D.11.g with generally accepted accounting procedures and practices, which sufficiently and properly reflect all revenues and expenditures of funds provided. ii. Collier County LPPF 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. Collier County LPPF agrees to comply with public record laws as outlined in section 119.0701, Florida Statutes. b. RETENTION OF RECORDS i. The Collier County LPPF 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. Collier County LPPF agrees to permit persons duly authorized by the Agency to inspect any records, papers, and documents of the Collier County LPPF which are relevant to this LOA. d. ASSIGNMENT AND SUBCONTRACTS i. The Collier County LPPF 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 Collier County LPPF 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. Collier County LPPF 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 LPPF_Region 8 _DPP LOA_SFY 2023-24 0 V� Packet Pg. 1081 16.D.11.g 7. Collier County LPPF agrees the following provision shall be included in any agreements between Collier County LPPF 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, 2023, through June 30, 2024, and shall be terminated September 30, 2024, 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 2023-2024 Estimated IGTs $11,295,409.35 Total Funding Not to Exceed $11,295,409.35 IN WITNESS WHEREOF, the parties have caused this page Letter of Agreement to be executed by their undersigned officials as duly authorized. Collier County LPPF SIGNED6-�V*BY:Qru��V NAME: R44e vs6n TITLE: 9 /2-912-OZ-3 DATE: STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION SIGNED BY: NAME: Thomas Wallace TITLE: Deputy Secretary, Division of Medicaid DATE: Collier County LPPF_Region 8 _DPP LOA_SFY 2023-24 0 ti A N 0 N C O r 7 O N O r C O E t v R Q a) Packet Pg. 1082 16.D.11.i RESOLUTION NO.2024- 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 property 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") consistent with federal guidelines, support additional funding for Medicaid payments to Hospitals; 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 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 (CA O Packet Pg. 1083 16.D.11.i 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 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. 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 officio Clerk to the Board, or other such person as may be duly 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. ,0) Packet Pg. 1084 16.D.11.i 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 I(f) 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. 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 Scope, 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 1.18% 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 Packet Pg. 1085 16.D.11.i 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. Timing 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 statement that the Assessment constitutes a lien against assessed property and/or improvements equal in rank and dignity with the liens of all state, county, district 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. 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. Severability. 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 101 day of September 2024. ATTEST: CRYSTAL K. KINZEL, CLERK Deputy Clerk Dated: (SEAL) Approval as to form and legality: Carly Jeanne Sanseverino !✓ $�ti1 Assistant County Attorney BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA CHRIS HALL, CHAIRPERSON Date: G'40 Packet Pg. 1086 16.D.11.j Directed Payment Program Letter of Agreement THIS LETTER OF AGREEMENT (LOA) is made and entered into in duplicate on the day of 2024, by and between Collier County LPPF (the "IGT Provider") on behalf of Region 8, and theState 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 2024-231, 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 Per House Bill 5001, the General Appropriations Act of State Fiscal Year 2024-2025, passed by the 2024 Florida Legislature, the Collier County LPPF and the Agency agree that the Collier County LPPF will remit IGT funds to the Agency in an amount not to exceed the total of $10,141,128.00. The Collier County LPPF and the Agency have agreed that these IGT funds will only be used for the DPP program. 2. The Collier County LPPF will return the signed LOA to the Agency. 3. The Collier County LPPF will pay IGT funds to the Agency in an amount not to exceed the total of $10,141,128.00. The Collier County LPPF will transfer payments to the Agency in the following manner: a. Per Florida Statute 409.908, annual payments for the months of July 2024 through June 2025 are due to the Agency no later than October 31, 2024, unless an alternative plan is specifically approved by the agency. b. The Agency will bill the Collier County LPPF when payment is due. 4. The Collier County LPPF 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. Collier County LPPF agrees to maintain books, records, and documents (including electronic storage media) pertinent to performance under this LOA in accordance Collier County LPPF _Region 8—DPP LOA_SFY 2024-25 Packet Pg. 1087 16.D.11.j with generally accepted accounting procedures and practices, which sufficiently and properly reflect all revenues and expenditures of funds provided. ii. Collier County LPPF 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. Collier County LPPF agrees to comply with public record laws as outlined in section 119.0701, Florida Statutes. b. RETENTION OF RECORDS The Collier County LPPF 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. Collier County LPPF agrees to permit persons duly authorized by the Agency to inspect any records, papers, and documents of the Collier County LPPF which are relevant to this LOA. ASSIGNMENT AND SUBCONTRACTS The Collier County LPPF 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 Collier County LPPF 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. Collier County LPPF 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 LPPF _Region 8—DPP LOA_SFY 2024-25 Packet Pg. 1088 16.D.11.j 7. Collier County LPPF agrees the following provision shall be included in any agreements between Collier County LPPF 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, 2024, through June 30, 2025, and shall be terminated September 30, 2025, 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 2024-2025 Estimated IGTs $10,141,128.00 Total Funding Not to Exceed $10,141,128.00 IN WITNESS WHEREOF, the parties have caused this page Letter of Agreement to be executed by their undersigned officials as duly authorized. COLLIER COUNTY LPPF SIGNED BY: NAME: Amy Patterson TITLE: County Manager DATE: STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION SIGNED BY: NAME: Tom Wallace TITLE: Deputy Secretary for Health Care Finance and Data DATE: Collier County LPPF _Region 8—DPP LOA_SFY 2024-25 Packet Pg. 1089 16.D.11.k * LocaliQ Florida GANNETT AFFIDAVIT OF PUBLICATION Ann LoBosco Ana Lobosco Cc Housinghuman Veteran Sery 3299 Tamiami TRL E 4 700 Naples FL 34112-5749 STATE OF WISCONSIN, COUNTY OF BROWN Before the undersigned authority personally appeared, who on oath says that he or she is the Legal Advertising Representative of the Naples Daily News, a newspaper published in Collier County, Florida; that the attached copy of advertisement, being a Legal Ad in the matter of Public Notices, was published on the publicly accessible website of Collier and Lee Counties, Florida, or in a newspaper by print in the issues of, on: 08/15/2024 Affiant further says that the website or newspaper complies with all legal requirements for publication in chapter 50, Florida Statutes. Subscribed and sworn to before me, by the legal clerk, who is personally known to me, on 08/15/2024 Legal otary, tate of ount rown 5•/5-a :7 My commission expires Publication Cost: $549.50 Tax Amount: $0.00 Payment Cost: $549.50 Order No: 10472882 # of Copies: Customer No: 1125695 1 PO #: THIS IS NOT AN INVOICE! Please do not use this form for payment remittance. 7NANCY HEYRMAN otary Public e of Wisconsin PO Box 631244 Cincinnati, OH 45263-1244 Page 1 of 2 Packet Pg. 1090 NOTICE OF HEARING REGARDING IMPOSING AND 16.D.11.k COLLECTING A NON -AD VALOREM SPECIAL ASSESSMENT FROM SPECIFIED HOSPITAL PROPERTIES Notice is hereby given that the Board of County Commissioners of Collier County, Florida, will conduct a public hearing pursuant to Ordi- nance No. 2021-23 to consider the approval of the imposition and collection of a non -ad valorem special assessment against each private toand and not -for -profit hospital that inpatient hospital services and that holds a right of possession and right of use to real Property in Collier Coun IY (each, on "Assessed Property"). The 1151 of affected hospitals is included at the conclusion of this notice. The assessment is intended to finance intergovernmental trans- 0 fers, provided consistent with L. federal guidelines, that fund the non- a federal share of certain supplemen- tal payment programs. As a result, the assessment directly and 0 specially benefits Assessed Proper- ties and supports the provision of health care services to Medicaid, ++ (Q indigent, and uninsured members of the County's community. The public hearing will be held in .a the Board of County Commissioners Chambers at the Collier Countv W Government Center, 3299 Tomiami Trail East, Naples, Florida, on (� September 10, 2024, at 9:00 a.m., or as soon thereafter as the matter can V be heard. At that time, the Board 'a will receive Public comment on the Proposed special assessment. The Collier County office has CC G prepared the Non -Ad Valorem Assessment Roll being considered for approval. The roll contains the +0+ names of the Assessed Properties, the assessment rate, and the amount of the special assessment to be each imposed 090 inst each Assessed Property. The Valorem L Assessment Roll is available for inspection at the Collier County budget office during regular busi- ness hours from August 15' 2024 through September 10, 2024. The assessment rate set forth in the Non- 0 Ad Valorem Assessment Roll to be levied against the net patient revenue of each Assessed Property is 1.18%. At the date and time set forth In this notice, the Board of County Corr is- LL sioners may: (1) approve the Non - Ad Valorem Assessment Roll, with such amendments as It deems lust 0 and right, and (2) adopt a resolution ++ (the "Assessment Resolution") that (� describes: (a) the supplemental PaYmenI programs proposed for funding from proceeds of the assess- ment, (b) the benefits to the Assessed Properties, (c) the L methodology for computing the (� assessed amounts, and (d) the a method of collection, including how and when the assessment is to be L Paid. All interested persons hove a right `a to appear at the hearing and to file written oblections with the Board Prior to the resolution vote. All 0 obiections to the Non -Ad Valorem L Assessment Roll being considered for for approval must be made in writ- ing and filed with the County by September 10, 2024. Written cafe, tions should be sent to the attention V of Board of Countv Commissioners 0 at 3299 Tomiami Trail East, Naples, J FL 34112. The amount of the assessment is to Q be collected pursuant to an addi- tional and alternative method, as V authorized by § 197.3631, FIa Sint. Details will be included in the Assessment Resolution. Q If you are a person with disability who needs on accommodation to Particl pate In this proceeding, you 0 are entitled at no cost to You, to the , f0 provision of certain assistance. 4711 Please contact the Collier County Facilities Management Division at N cm (239) 252-8380 at least forty-eight (48) hours prior to the public hear- .a ing if you need special accommoda- tions. Pursuant to § 286.0105, Fla Slat., if o L. Person decides to appeal any deci- 0 sign of the Board of County Commis- sioners on any matter considered at the Public hearing, he or she will need a record of the Proceedings. ' Forsuch Purpose, a Person appeal- ing the decision may need to ensure the creation of a verbatim record, .a which captures the testimony and evidence upon which the appeal is based. �F Q Collier County, FLORIDA List of Affected Properties: The special assessment is to be 0 levied against each private for -profit d and not -for -profit hospital operating under a Florida hospital license affiliated with the following Providers of inpatient hospital services that holds a right of posses- s ion and right of use to real property in Collier County, Florida: �0+ y� Hospital Name: Physicians Regional Medical Center - Pine Ridge Hospital Address: 6101 Pine Ridge Rd., Naples, FL 34119 Parcel I D : 80670080001 Hospital Name: NCH Baker Hospi- tal Downtown Hospital Address: 350 7th St. N. Naples, FL 34102 Parcel ID: 14038880000 Hospital Name: The Wlllough at NaPles Hospital Address: 9001 Tomiami Trail East, Naples, FL 33862 Parcel I D: 55100120000 Hospital Name: Encompass Health Rehobill Lotion Hospital of Naples Hospital Address: 4042 Wolfe Rd., Naples, FI 204790006 Parcel ID: Packet Pg. 1091 411 August 15,2024 10472882 !eolpaw a;enpeaE) pue punk uol;edlol:Ped aapinoad !eoo-1 VOHV : 9086Z) PV JOI I!nep!IIV :juauayoe;jy C O a m o co o U N m o o 0 00 CD o 0 CD� 00 L > Ln o � efl o O h VL L } Z c ai o cOi � •• U � c } a C O U t L t L N O E O y rn O 0 Q 0 o aL U _J = A-1 V ° z LQ > L > L O C71 N N T c a c o a c) } m m o > > W v u N a J � a N - O E E H L L O M v O CAD O ai rn a J uu, couu, C 'y C •c-c Q N C m LL O CO N V O CO O oJNJJa H Ln Ln = = o, a O. c N C N U u N c a c Ol C u u M Q z Q N Q L m Eo m Z c O p L Z L L Z a W 61 N H +- 4 +� C E o E' o U a U v U a j Z U 7 7 •a 0 Q U U Q o U O U o u a � v cV N O Co N N h � co 00 O O 'a C d V W CV CV N N L � N v co N o 0 a C O 4- N c ft 67 z o a cu N C N w a a L) Z c 'a z z 0 0 0 a z z _N O O M M O M In O T Ot li V O O O. Ln Nf N N V Ln 2 U U a L U U C N d O L V U U u1 >. > \ O. = C C > > rPi U O O Q E E ai Q Q O LL L C C U U CNC CN Q - C C X L (n >` >` a O a a a �- (n U a a N +L w T O a } CL N C > O V ? a c a a 2 U Q o i �2 Q to d L o U o• � p. L N 1n L a m U O }O m a } > a V a a O N 2 O Q c V L U N O c � L c O U w ° a Q o u d zo 00 CD 0 m E m u m EE a Pg 11 g f H ins ji , P -Vul An §M I <wW!M&I'Mcnz Jim -'r- 9 'J! ell jj�^AH gjpjjl S-z -gill -2 SE Nzt=- 11-Mi2wl. 16 o- 5 1 'ilg�, n - 'g ILI1W liel"ll. E A "I"N spaii >. . - - .2 fflo Aim, I ? ml M Iflijallifliz"fl's 611J.2f E I I P2 V ffillWill IMMM -IMMM82.1 :112siffi I Packet Pg. 1093 16.D.11.1 09/28/2021 EXECUTIVE SUMMARY Recommendation to adopt a Resolution authorizing non -ad valorem special assessment on hospital - owned properties or properties used as a hospital as authorized by the Local Provider Participation Fund for the Directed Payment Program established by Ordinance No 2021-23 and authorize the necessary budget amendment; and to authorize the County Manager or designee to sign the Letter of Agreement in an amount not to exceed the total of $6,687,755 with the Agency for Health Care Administration to participate in the Local Provider Participation Fund that will provide additional health services for the citizens of Collier County. OBJECTIVE: To adopt a Resolution authorizing a non -ad valorem special assessment on hospital - owned property or property used as a hospital with such assessment to be used to leverage federal funding in support of area hospitals that provide health services to the low-income citizens of Collier County. CONSIDERATIONS: On June 8, 2021, the Board of County Commissioners (Board) approved Agenda Item No. 16076 authorizing the advertisement of an ordinance establishing a Local Provider Participation Fund (LPPF) for the Directed Payment Program to be solely funded by assessments on hospital -owned property or property used as a hospital. On June 22, 2021, the Board adopted Ordinance No. 2021-23. At that time, Agency for Health Care Administration (AHCA) was in the process of finalizing its modeling of the amount for non-federal share (the assessment) needed for the program. The modeling has since been completed and a resolution containing the appropriate assessment rate has been developed and is now presented. Also, the County is required to enter into a Letter of Agreement with AHCA to provide for a mechanism for the collection of the funds in the LPPF and for their provision. AHCA is a State entity that provides Medicaid services in Florida and operates the LPPF. The County's participation in the LPPF Program is outlined in the contractual arrangement between Collier County and AHCA, which is presented as part of this Item. As background, Hospitals in Collier County annually provide millions of dollars of uncompensated care to persons who qualify for Medicaid because Medicaid, on average, covers only sixty percent (60%) of the costs of the health care services provided by Hospitals to Medicaid eligible persons, leaving hospitals with significant uncompensated costs. As a direct result of this revenue shortfall, during the FY21 Legislative session, the Governor with the full support of the House and Senate approved the establishment of the Directed Payment Program (DPP). This program is available to hospitals providing inpatient and outpatient services to Medicaid -managed care enrollees. It is the intent of the program to offset hospitals' Medicaid shortfall and improve the quality of care provided to the Florida Medicaid population. At the time Ordinance 2021-23 was considered, this program had been adopted by three (3) Counties, Escambia, Brevard, and Walton. In April, the County was approached by the hospitals and requested the County participate in the Directed Payment Program. To participate in this program, the County was required to establish a Local Provider Participation Fund (LPPF) via an Ordinance. Ordinance No. 2021-23 establishes the parameters of the LPPF program. The County, at the request of the hospitals annually, will impose a non -ad valorem assessment upon real property owned by the Hospitals to help fund the non-federal share of the State's Medicaid Program. This assessment will provide additional funding for Medicaid payments to Naples Community Hospital, Landmark Hospital, The Willough at Naples, and Physicians Regional Medical Center to address the Medicaid shortfall. The leveraging of additional federal support through the DPP program will directly benefit the health care services delivered to Medicaid -eligible persons and support their ability to provide critical services. Packet Pg. 1094 16.D.11.1 09/28/2021 Ordinance No. 2021-23 enables the County to levy a uniform non -ad valorem special assessment in compliance with 42 C.F.R. 433.68(d). The assessment shall be fairly and reasonably apportioned among each of the Hospital's properties within the County limits. 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. Approval will allow the County to establish and maintain a system of funding to support the non-federal share of Medicaid payments that will directly benefit the Hospital properties. The assessment shall constitute a lien upon the assessed properties. The proposed assessment shall be held in a separate account called the local provider participation fund (LPPF) 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 forthcoming Assessment Resolution. Annually 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. 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. 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) if requested to do so by the Assessed Properties, 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. The Resolution was advertised, as required, in the Naples Daily News on September 8, 2021. The Resolution sets forth the assessment details and provides authority to make the assessment, invoice and collect the assessment, and then provide the appropriate share to the Agency for Health Care Administration. Accordingly, notices of invoice have been mailed to the affected four (4) properties (Landmark Hospital of Southwest Florida, NCH Baker Hospital, and Physicians Regional Medical Center) on August 23, 2021, and (The Willough at Naples) on August 27, 2021. The notice includes the proposed assessment amount for each hospital. All hospitals are required to participate and should any choose not to participate the assessment will not go forward. Per Senate Bill 2500, the General Appropriations Act of State Fiscal Year 2021-2022, passed by the 2021 Florida Legislature, the Collier County LPPF and the Agency for Health Care Administration agree that the Collier County LPPF will remit Intergovernmental Transfers (IGT) funds to the Agency in an amount not to exceed the total of $6,687,755 as per the referenced Letter of Agreement that is presented. The Collier County LPPF and the Agency have agreed that these IGT funds will only be used for the DPP Packet Pg. 1095 16.D.11.1 09/28/2021 program. DPP Local Intergovernmental Transfers Program / Amount State Fiscal Year 2021-2022 Year One DPP IGTs $6,687,755 Total Funding $6,687,755 FISCAL IMPACT: The Directed Payment Program is a funding mechanism that takes hospitals' funds collected through a non -ad valorem assessment and directs those dollars to the AHCA to fund the non- federal share of the State's Medicaid program ultimately resulting in enhanced funding returned to the hospitals. AHCA is currently working on the implementation plan for the Directed Payment Program. Once AHCA finalizes its modeling the amount of non-federal share (the assessment) needed to fund the Directed Payment Program will become available. The Assessment shall equal 1.11% of net patient revenue for each Assessed Property. 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). No more than $150,000 will be retained for administrative expenses. The total non -ad valorem special assessment that will be collected for fiscal year 2021 from the Affected Properties is $9,327,890. Hospital Name Assessment Amount NCH Baker Hospital $5,780,701 Physicians Regional Medical Center $3,059,745 Landmark Hospital of Southwest Florida $288,404 The Willough at Naples $199,040 Total $9,327,890 Relative to budget administration, a Budget Amendment is necessary to establish a Local Provider Participation Fund (169). The budget will include a revenue account (363100 Special Assessment) for receipt of assessments paid by the hospitals in the amount of $9,327,890 and expense accounts (881400 Remit to Other Government) for the remittance of program funds to ACHA and (634980 Interdepartmental Payment for Service) for reimbursement of County administrative costs associated with the implementation of the assessment. Advertising fees are $763. Additionally, the Collier County LPPF will pay IGT funds to the Agency for Health Care Administration in an amount not to exceed the total of $6,687,755. Per Florida Statute 409.908, annual payments for the months of July 2021 through June 2022 are due to the Agency for Health Care Administration no later than October 31, 2021, unless an alternative plan is specifically approved by the agency. Funds will be available in Local Provider Participation Fund (169). GROWTH MANAGEMENT IMPACT: There is no Growth Management impact. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for Board action. -JAB RECOMMENDATION: To adopt a Resolution authorizing non -ad valorem special assessment on hospital -owned properties or properties used as a hospital as authorized by the Local Provider Participation Fund for the Directed Payment Program established by Ordinance No 2021-23 and authorize the necessary budget amendment, and to authorize the County Manager or designee to sign the Letter of Packet Pg. 1096 16.D.11.1 09/28/2021 Agreement in an amount not to exceed the total of $6,687,755 with the Agency for Health Care Administration to participate in the Direct Payment Program that will provide additional health services for the citizens of Collier County. Prepared By: Irene Takla, Accountant, Operations and Veteran Services Division ATTACHMENT(S) 1. 1. Ordinance 2021-23 (PDF) 2.2. Resolution Hospital Assessment CAO approved (PDF) 3.3. Collier County Roll (PDF) 4.4. Collier Description of Properties to be Assessed (PDF) 5. 5. Advertisement 9.8.21(PDF) 6.6. Landmark Invoice 09.29.2021 (PDF) 7.7. NCH Baker Invoice 09.29.2021 (PDF) 8. 8. Physicians Regional Invoice 09.29.2021 (PDF) 9.9. The Willough Invoice 09.29.2021 (PDF) 10. legal ad - agenda ID 19976 (PDF) 11. DPP LOA (PDF) 12. IGT questionnaire statewide DDP (XLSX) Packet Pg. 1097 16.D.11.1 09/28/2021 COLLIER COUNTY Board of County Commissioners Item Number: 16.13.3 Doe ID: 19976 Item Summary: Recommendation to adopt a Resolution authorizing non -ad valorem special assessment on hospital -owned properties or properties used as a hospital as authorized by the Local Provider Participation Fund for the Directed Payment Program established by Ordinance No 2021-23 and authorize the necessary budget amendment; and to authorize the County Manager or designee to sign the Letter of Agreement in an amount not to exceed the total of $6,687,755 with the Agency for Health Care Administration to participate in the Local Provider Participation Fund that will provide additional health services for the citizens of Collier County. Meeting Date: 09/28/2021 Prepared by: Title: — Public Services Department Name: Todd Henry 09/03/2021 1:17 PM Submitted by: Title: Department Head — Public Services Department Name: Dan Rodriguez 09/03/2021 1:17 PM Approved By: Review: Community & Human Services Operations & Veteran Services Public Services Department Public Services Department County Attorney's Office Office of Management and Budget County Attorney's Office Office of Management and Budget County Manager's Office Board of County Commissioners Kristi Sonntag Additional Reviewer Kimberley Grant Additional Reviewer Todd Henry Public Services Department Dan Rodriguez PSD Department Head Jennifer Belpedio Level 2 Attorney of Record Review Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Susan Usher Additional Reviewer Sean Callahan Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 09/03/2021 5:37 PM Completed 09/03/2021 5:59 PM Completed 09/07/2021 7:58 AM Completed 09/07/2021 9:52 AM Completed 09/08/2021 10:57 AM Completed 09/08/2021 11:03 AM ri 6 Completed 09/08/2021 4:21 PM 6 r Completed 09/08/2021 4:54 PM N 00 Completed 09/20/2021 9:52 AM N rn N 09/28/2021 9:00 AM W r C d E t L) cc .r r a Packet Pg. 1098 16.D.11.1 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 1S 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. 1099 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. 1100 1ti.D.11.1 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. 1101 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 I Packet Pg. 1102 16.D.11.1 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. 1103 - 16.D.11.1 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. 1104 16.D.11.1 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. 1105 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. 1106 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. 1107 ATTEST: BOARD OF COUNTY COMMISSIONERS CRYSTAL K KINZEL, CLERK COLLIQO�N Y, FLORIDA, N rt f 1 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 receiaed phis filing �O of J Vl By Deouty C Page 10 of 10 G i Q Packet Pg. 1108 16.D.11.1 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. 1109 16.D.11.1 RESOLUTION NO. 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, the State of Florida (the "State") received federal authority to establish the Statewide Medicaid Managed Care Hospital directed payment program (the "DPP") to offset hospitals' uncompensated Medicaid costs and improve quality of care provided to Florida's Medicaid population; and WHEREAS, Hospitals have asked Collier County (the "County") to impose 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 0'40 Packet Pg. 1110 16.D.11.1 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 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, leveraging additional federal support through the above -described IGTs to fund Medicaid payments to the Hospitals for health care services directly and specifically benefits the Hospitals' property interests and supports their continued ability to provide those services; 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 2001-23, 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 2 CAU Packet Pg. 1111 16.D.11.1 otherwise defined herein or in the Ordinance, shall have the meanings below, unless the context otherwise requires. 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 officio Clerk to the Board, or other such person as may be duly 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 No 20021-23. Tax Collector means the Collier County Tax Collector. Section 2. Authority. Pursuant to 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 C 3 7 Packet Pg. 1112 16.D.11.1 the County, Proceeds from the Assessment shall be used to benefit Assessed Properties through a directed payment program that will benefit the Assessed Properties for Local Services, 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 Scope, 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 managed care hospital directed 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 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) if requested to do so by the Assessed Properties, 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 1.11 % 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. Timing and Method of Collection. The amount of the assessment is to be collected pursuant to the Alternative Method outlined in § 197.3631, Fla. Stat. 4 fin? Packet Pg. 1113 16.D.11.1 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 statement that the Assessment constitutes a lien against assessed property and/or improvements equal in rank and dignity with the liens of all state, county, district 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 Hearin. As required by §197.3631, Fla. Stat. 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. Severability. 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 28`h day of September, 2021. ATTEST: BOARD OF COUNTY COMMISSIONERS CRYSTAL K. KINZEL, CLERK COLLIER COUNTY, FLORIDA M. , DEPUTY CLERK Approved as to form and legality: Jennifer A. Belpedio Assistant County Attorney M. PENNY TAYLOR, CHAIRPERSON .Q Packet Pg. 1114 O C N h N R LL a a J T C 7 O U `m 0 U leoipaw ejenpeaE) pue pund uoi;edioi;aed aapinoad Ieool VOHV : 9096Z) '£'a'9� �Z'9Z-6 S9 :;uauayoe;;y L" Lo Ln O M EA o m c0 N U3 o o N I- Ln ca o m O ER N M T 0 � _ M o N M O �N LD W O N M O Ln M Ln 0 O r O N N N 7 A m W 4a N N N O a a a a (0 f6 (6 (6 Z Z Z Z U J 3 y N E m o y tm U) E U � J p U J 2 r � 6 N E = L 2 m U a U J Z O o v m rs 0 a� a E � `o o cmLL d y m U � a � 0 a o o = a @ 'E c o •• 'E Z 'Eba o E = E cm n y O U O E o d J Z F O O O O O O Ln M V O co M 7 co7 O O O c0 0 16.D.11.1 Facility Street Street Street Street Real Estate Name Street Address Legal Description Type City State Zip County Parcel Number PHYSICIANS REGIONAL 6101 Pine Ridge VINEYARDS UNIT ONE, THE TRACT "B" AND THAT PORTION OF SEC 8 TWP Hospital MEDICAL CENTER - PINE Naples FL 34119 Collier 80670080001 RIDGE Rd RNG 26 AS DESC IN OR 2313 PG 3115 CREEKSIDE COMMERCE PARK EAST, PART OF TR 5 DESC AS FOLL; COM AT LANDMARK HOSPITAL CNR 27-48-25 ALG E U 50109 43E 696.85FT, THENCE S88 50 17W 559.33F Hospital OF SOUTHWEST Creekside Naples FL 34109 Collier 29331180612 TO POB. THENCE SOOW 245.17FT, THENCE 126.74FT ALG ARC TO NW, FLORIDA Blvd Blvd B THENCE S84 26 05W 428.11FT, THENCE 39.26FT ALG ARC, THENCE N05 35 40W 353.51FT, THENCE N90E 565.33FT TO POB. 4.36 AC NAPLES T 7 BILKS 24 & 23, T 8 BILKS 23 & 24 & ALL VAC E/W & N/S ALLEYS ! Hospital NCH BAKER HOSPITAL 350 7th St N Naples FL 34102 Collier 14038880000 THAT VACATED PORT OF 3RD AVE N LY BETWEEN 6TH ST & 8TH ST & THA" VACATED PORT OF 7TH ST LY BETWEEN SECOND AVE N & FOURTH AVE N LELY EST ST ANDREWS W A PORTION OF TR J DESC AS: COMM SE CNR SEC THE WILLOUGH AT 9001 Tamiami 19, N 39 DEG W 359.82FTTO POB, S 50 DEG W 473.35FT E RW US 41, N 3S Hospital Naples FL 33862 Collier 55100120000 NAPLES Trail East DEG W 550FT, N 50 DEG E 604.72FT, S 58 DEG E 580.78FT, S 50 DEG W 324.20FT TO POB OR 996 PG 1813-14 OR 1079 PG 1333 El w O 00 0 N M d �O T T N 06 N Cri Cn LU C d E z V r� r� Q Packet Pg. 1116 16.D.11.1 NOTICE OF PUBLIC HEARING TO CONSIDER THE IMPOSITION AND COLLECTION OF A NON -AD VALOREM SPECIAL ASSESSMENT Notice is hereby given that the Board of County Commissioners of Collier County, Florida, will conduct a public hearing to consider the approval of the imposition and collection of a non -ad valorem special assessment against each private for -profit and not -for -profit hospital that provides inpatient hospital services and that holds a right of possession and right of use to real property in Collier County, Florida (each, an "Assessed Property"). The list of affected hospitals is included at the conclusion of this notice. The assessment is intended to finance intergovernmental transfers provided consistent with federal guidelines to fund the non-federal share of certain Medicaid and/or Medicaid managed care payments. As a result, the assessment directly and specially benefits Assessed Properties and supports the provision of health care services to Medicaid, indigent, and uninsured members of the County's community. The public hearing will be held at Administration Building, located at 3299 Tamiami Trail East, Suite 303, Naples, FL 34112-5746, on September 28 at 9 a.m., or as soon thereafter as the matter can be heard. At that time, the Board will receive public comment on the proposed special assessment. The County has prepared the Non -Ad Valorem Assessment Roll being considered for approval based on information provided by the hospitals. The roll contains the names of the hospitals; the tax parcel identification numbers of the parcels; the section, township, and range of the parcels assessed; the parcel owner's name; the address and the names and addresses of any leaseholders of the Assessed Properties; the assessment rate; and the amount of the special assessment to be imposed against each Assessed Property. The Non -Ad Valorem Assessment Roll will be available for inspection at the Collier County Operations & Veterans Services, located at 3339 Tamiami Trail East Suite 212, Naples, FL 34112, during regular business hours from September 8, 2021, until the hearing concludes on Tuesday, September 21, 2021. The assessment rate set forth in the Non -Ad Valorem Assessment Roll to be levied against the net patient revenue of each Assessed Property is 1.11%. At the date and time set forth in this notice, the Board of County Commissioners may: (1) approve the Non -Ad Valorem Assessment Roll, with such amendments as it deems just and right and (2) adopt a resolution (the "Assessment Resolution") that describes (a) the Medicaid payments proposed for funding from proceeds of the assessment, (b) the benefits to the Assessed Properties, (c) the methodology for computing the assessed amounts, and (d) the method of collection, including how and when the assessment is to be paid. All interested persons have a right to appear at the public hearing and to file written objections with the Board prior to the resolution vote. All written objections to the Non -Ad Valorem Assessment being considered for approval shall be filed with the County by September 27, 2021. Written objections should be sent to the attention of Collier County Operations & Veterans Services, located at 3339 Tamiami Trail East Suite 212, Naples, FL 34112. Packet Pg. 1117 16.D.11.1 The amount of the assessment is to be collected pursuant an additional and alternative method, as specified in § 197.3631, Fla. Stat., for the assessment and collection of a non -ad valorem special assessment. Details will be included in the Assessment Resolution. If you are a person with disability who needs any accommodation to participate in this proceeding, you are entitled, at no cost to you, to the provision of certain assistance. Please contact Collier County Facilities Management Division at (239) 252-8380 at least three days prior to the public hearing if you need special accommodations. Collier County, FLORIDA List of Affected Properties: The special assessment is to be levied against each private for -profit and not -for -profit hospital operating under a Florida hospital license affiliated with the following providers of inpatient hospital services that holds a right of possession and right of use to real property in Collier County, Florida: Physicians Regional Medical Center 6101 Pine Ridge Rd Naples, FL 34119 Parcel #: 80670080001 Landmark Hospital of Southwest Florida 1285 Creekside Blvd Naples FL 34109 Parcel #: 29331180612 NCH Baker Hospital 350 7th St N Naples FL 34102 Parcel #: 14038880000 The Willough at Naples 9001 Tamiami Trail East Naples, FL 33862 Parcel #: 55100120000 Packet Pg. 1118 Corley County Public Services Department Community & Human Services Division September 29, 2021 Daniel Dunmyer Landmark Hospital of Southwest Florida 1285 Creekside Blvd Naples FL 34109 Re: Parcel Number 29331180612 Collier County Local Provider Participation Fund Assessment Dear Hospital Administrator: Attached is your invoice for the annual mandatory payment for the Collier County Local Provider Participation Fund ("LPPF"). The mandatory payment rate for Fiscal Year 2021 has been set at 1.11 % of your net patient revenue. Net patient revenue is based on the Hospital's most recently filed Medicare Cost report, which is filed with the Centers of Medicare and Medicaid services. The mandatory payments will be deposited into the LPPF. These funds will be used for the non-federal share of a Medicaid supplemental payment program. The LPPF is broad based; it applies to all non-public hospitals located in Collier County that provide inpatient hospital services. The formula for calculating the mandatory payments is the same for each hospital. No hospitals are held harmless or exempt from paying the mandatory payments. The mandatory payments are assessed annually but paid in installments due in accordance with the schedule below: Questions regarding your assessment and the process for collection may be directed to the Operations & Veterans Services Division of Collier County at County at (239) 252- 83 87. 16.D.11.1 N 00 N M w c aD E a Community & Human Services Division • 3339 Tamiami Trail East, Suite 211 • Naples, Florida 34112-5361 239-252-CARE (2273) • 239-252-CAFE (2233) • 239-252-4230 (RSVP) • v#Awvlf.colliergov.neUhumanservices Packet Pg. 1119 16.D.11.1 * * * * THIS IS AN INVOICE * * * * COLLIER COUNTY LOCAL PROVIDER PARTICIPATION FUND Landmark Hospital of Southwest Florida Parcel Number 29331180612 Amount of assessment attributed to hospital: $288,404 Number of annual payments: 1 Total amount of annual payments: $288,404 Amount Due: $288,404 Due by Date: October 15, 2021 Make check payable to: Collier County Board of County Commissioners C/O Operations & Veterans Services 3339 Tamiami Trail East Suite 212 Naples, FL 34112 * * * * THIS IS AN INVOICE * * * * vi 0 r N 00 N a) N W a+ C d E s �a .r Q Packet Pg. 1120 16.D.11.1 Vie„ Co 7 County Public Services Department Community & Human Services Division September 29, 2021 Rick Wyles 350 7th Street North Naples, FL 34102 Re: Parcel Number 14038880000 Collier County Local Provider Participation Fund Assessment Dear Hospital Administrator: Attached is your invoice for the annual mandatory payment for the Collier County Local Provider Participation Fund ("LPPF"). The mandatory payment rate for Fiscal Year 2021 has been set at 1.11 % of your net patient revenue. Net patient revenue is based on the Hospital's most recently filed Medicare Cost report, which is filed with the Centers of Medicare and Medicaid services. The mandatory payments will be deposited into the LPPF. These funds will be used for the non-federal share of a Medicaid supplemental payment program. The LPPF is broad based; it applies to all non-public hospitals located in Collier County that provide inpatient hospital services. The formula for calculating the mandatory payments is the same for each hospital. No hospitals are held harmless or exempt from paying the mandatory payments. The mandatory payments are assessed annually but paid in installments due in accordance with the schedule below: Questions regarding your assessment and the process for collection may be directed to the Operations & Veterans Services Division of Collier County at County at (239) 252- 83 87. N 00 N CD U) w c d E t c� a Community & Human Services Division • 3339 Tamiami Trail East, Suite 211 • Naples, Florida 34112-5361 239-252-CARE (2273) • 239-252-CAFE (2233) • 239-252-4230 (RSVP) • www.colliergov.net/humanservices Packet Pg. 1121 16.D.11.1 * * * * THIS IS AN INVOICE * * * * COLLIER COUNTY LOCAL PROVIDER PARTICIPATION FUND NCH Baker Hospital Parcel Number 14038880000 Amount of assessment attributed to hospital: $ 5,780,701 Number of annual payments: 1 Total amount of annual payments: $ 5,780,701 Amount Due: $ 5,780,701 Due by Date: October 15, 2021 Make check payable to: Collier County Board of County Commissioners C/O Operations & Veterans Services 3339 Tamiami Trail East Suite 212 Naples, FL 34112 * * * * THIS IS AN INVOICE * * * * Packet Pg. 1122 16.D.11.1 CO 7eY Ci014 tty Public Services Department Community & Human Services Division September 29, 2021 Lynne Mitchell 8300 Collier Boulevard Naples, Florida 34114 Re: Parcel Number 80670080001 Collier County Local Provider Participation Fund Assessment Dear Hospital Administrator: Attached is your invoice for the annual mandatory payment for the Collier County Local Provider Participation Fund ("LPPF"). The mandatory payment rate for Fiscal Year 2021 has been set at 1.11 % of your net patient revenue. Net patient revenue is based on the Hospital's most recently filed Medicare Cost report, which is filed with the Centers of Medicare and Medicaid services. The mandatory payments will be deposited into the LPPF. These funds will be used for the non-federal share of a Medicaid supplemental payment program. The LPPF is broad based; it applies to all non-public hospitals located in Collier County that provide inpatient hospital services. The formula for calculating the mandatory payments is the same for each hospital. No hospitals are held harmless or exempt from paying the mandatory payments. The mandatory payments are assessed annually but paid in installments due in accordance with the schedule below: Questions regarding your assessment and the process for collection may be directed to the Operations & Veterans Services Division of Collier County at County at (239) 252- 8387. Community & Human Services Division • 3339 Tamiami Trail East, Suite 211 • Naples, Florida 34112-5361 239-252-CARE (2273) • 239-252-CAFE (2233) • 239-252-4230 (RSVP) • wvvw.colliergov.net/humanservices Packet Pg. 1123 16.D.11.1 * * * * THIS IS AN INVOICE * * * * COLLIER COUNTY LOCAL PROVIDER PARTICIPATION FUND Physicians Regional Medical Center Parcel Number 80670080001 Amount of assessment attributed to hospital: $3,059,745 Number of annual payments: 1 Total amount of annual payments: $3,059,745 Amount Due: $3,059,745 Due by Date: October 15, 2021 Make check payable to: Collier County Board of County Commissioners C/O Operations & Veterans Services 3339 Tamiami Trail East Suite 212 Naples, FL 34112 * * * * THIS IS AN INVOICE * * * * �k N 00 N M W w C d E s �a w r Q Packet Pg. 1124 16.D.11.1 Co Ier County Public Services Department Community & Human Services Division September 29, 2021 Rick Bennett The Willough at Naples 9001 Tamiami Trail East Naples, FL 33862 Re: Parcel Number: 55100120000 Collier County Local Provider Participation Fund Assessment Dear Hospital Administrator: Attached is your invoice for the annual mandatory payment for the Collier County Local Provider Participation Fund ("LPPF"). The mandatory payment rate for Fiscal Year 2021 has been set at 1.11 % of your net patient revenue. Net patient revenue is based on the Hospital's most recently filed Medicare Cost report, which is filed with the Centers of Medicare and Medicaid services. The mandatory payments will be deposited into the LPPF. These funds will be used for the non-federal share of a Medicaid supplemental payment program. The LPPF is broad based; it applies to all non-public hospitals located in Collier County that provide inpatient hospital services. The formula for calculating the mandatory payments is the same for each hospital. No hospitals are held harmless or exempt from paying the mandatory payments. The mandatory payments are assessed annually but paid in installments due in accordance with the schedule below: Questions regarding your assessment and the process for collection may be directed to the Operations & Veterans Services Division of Collier County at County at (239) 252- 8387. Community & Human Services Division • 3339 Tamiami Trail East, Suite 211 - Naples, Florida 34112-5361 239-252-CARE (2273) • 239-252-CAFE (2233) • 239-252-4230 (RSVP) - www.colliergov.neUhumanservices Packet Pg. 1125 16.D.11.1 * * * * THIS IS AN INVOICE * * * * COLLIER COUNTY LOCAL PROVIDER PARTICIPATION FUND The Willough at Naples Parcel Number: 55100120000 Amount of assessment attributed to hospital: $199,040 Number of annual payments: 1 Total amount of annual payments: $199,040 Amount Due: $199,040 Due by Date: October 15, 2021 Make check payable to: Collier County Board of County Commissioners C/O Operations & Veterans Services 3339 Tamiami Trail East Suite 212 Naples, FL 34112 * * * * THIS IS AN INVOICE * * * * Packet Pg. 1126 16.D.11.1 I `= -76 t NOTICE OF PUBLIC HEARING TO CONSIDER THE IMPOSITION AND COLLECTION OF A NON -AD VALOREM SPECIAL ASSESSMENT Notice is hereby given that the Board of County Commission- ers of Collier County, Florida, will conduct a public hearing to consider the approval of the imposition and collection of a non -ad valorem special assessment against each private for - profit and not -for -profit hospital that provides inpatient hospi- tal services and that holds a right of possession and right of use to real property in Collier County, Florida (each, an "As- sessed Property"). The list of affected hospitals is included at the conclusion of this notice. The assessment is intended to finance intergovernmental trans- fers Pravided consistent with federal guidelines to fund the non-federal share of certain Medicaid and/or Medicaid man- aged care payments. As a result, the assessment directly and specially benefits Assessed Properties and supports the provi- sion of health care services to Medicaid, indigent, and unin- sured members of the County's community. The public hearing will be held at Administration Building, lo- cated at 3299 Tamiami Trail East, Suite 303, Naples, Ft. 34112- 5746, on September 28 at 9 a.m., or ,as soon thereafter as the matter can be heard. At that time, the Board will receive pub- lic comment on the proposed special assessment. The County has prepared the Non -Ad Valorem Assessment Roll being considered for approval based on information provided by the hospitals. The roll contains the names of the hospitals; the tax parcel identification numbers of the parcels; the sec- tion, township, and range of the parcels assessed; the parcel owner's name; the address and the names and addresses of any leaseholders of the Assessed Properties; the assessment rate; and the amount of the special assessment to be imposed against each Assessed Property. The Nort-Ad Valorem Assess- ment Roll will be available for inspection at the Collier County Operations & Veterans Services, located at 3339 Tamiami Trail East Suite 212, Naples, FL 34112, during regular business hours from September 8, 2021, until the hearing concludes on Tuesday, September 21, 2021. The assessment rate set forth in the Non -Ad Valorem Assessment Roll to be levied against the net patient revenue of each Assessed Property is 1.11 %. At the date and time set forth in this notice, the Board of County Commissioners may: (1) approve the Non -Ad Valorem Assessment Roll, with such amendments as it deems just and right and (2) adopt a resolution (the "Assessment Resolution") that describes (a) the Medicaid payments proposed for fund- ing from proceeds of the assessment, (b) the benefits to the As- sessed Properties, (c) the methodology forcomputing the as- sessed amounts, and (d) the method of collection, including how and when the assessment is to be paid. All interested persons have a right to appear at the. public hearing and to file written objections with the Board prior to the resolution vote. All written objections to the Non -Ad Valorem Assessment being considered for approval shall be filed with the County by September 27, 2021. Written objec- tions should be sent to the attention of Collier County Opera- tions & Veterans Services, located at 3339 Tamiami Trail East Suite 212, Naples, FL 34112. The amount of the assessment is to be collected pursuant an additional and alternative method, as specified in § 197,3631, Fla. Stat., for the assessment and collection of a non -ad valorem special assessment. Details will be included in the As- sessment Resolution. I ' It you are a person with disability who needs any accommoda- tion to participate in this proceeding, you are entitled, at no cost to �ou, to the provision of certain assistance. Please con- tact Co KierCounty Facilities Management Division at (239) 252-8380 at least three days prior to the public hearing it you need special accommodations. Collier County, FLORIDA List of Affected Properties: The special assessment is to be levied against each private for - profit and not -for -profit hospital operating under a Florida hospital license affiliated with the following providers of inpa- tient hospital services that holds a right of possession and right of use to real property in Collier County, Florida: Physicians Regional Medical Center 6101 Pine Ridge Rd Naples, FL 34119 Parcel #: 8067.0080001 Landmark Hospital of Southwest Florida 1285 Creekside Blvd Naples FL 34109 Parcel #: 29331180612 NCH Baker Hospital 350 7th St N Naples FL 34102 Parcel #: 14038880000 The Willough at Naples 9001 Tamiami Trail East - Naples, FL 33862 Parcel #: Pub: September8, 2021 - 4888777 Z 30 M r M Z m N A O m v Z M N v In m nn O7 m A O N O t0 fl A Packet Pg. 1127 16.D.11.1 A. Directed Payment Program Letter of Agreement THIS LETTER OF AGREEMENT (LOA) is made and entered into in duplicate on the day of 2021, by and between Collier County LPPF 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 2021-111, 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. GENERAL PROVISIONS 1. Per Senate Bill 2500, the General Appropriations Act of State Fiscal Year 2021-2022, passed by the 2021 Florida Legislature, the Collier County LPPF and the Agency agree that the Collier County LPPF will remit IGT funds to the Agency in an amount not to exceed the total of $6,687,755. The Collier County LPPF and the Agency have agreed that these IGT funds will only be used for the DPP program. 2. The Collier County LPPF will return the signed LOA to the Agency. 3. The Collier County LPPF will pay IGT funds to the Agency in an amount not to exceed the total of $6,687,766, The Collier County LPPF will transfer payments to the Agency in the following manner: a. Per Florida Statute 409.908. annual payments for the months of July 2021 N through June 2022 are due to the Agency no later than October 31, 2021 unless an alternative plan is specifically approved by the agency. o b. The Agency will bill the Collier County LPPF when payment is due. N co 4. The Collier County LPPF and the Agency agree that the Agency will maintain necessary records and supporting documentation applicable to health services covered by this LOA w in accordance with public records laws and established retention schedules. r c m a. AUDITS AND RECORDS E i. Collier County LPPF agrees to maintain books, records, and documents a (including electronic storage media) pertinent to performance under this LOA in Collier County LPPF_Region B, DPP LOA_SFY 2021-22 Packet Pg. 1128 16.D.11.1 accordance with generally accepted accounting procedures and practices, which sufficiently and properly reflect all revenues and expenditures of funds provided, ii, Collier County LPPF 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. Collier County LPPF agrees to comply with public record laws as outlined in section 119.0701, Florida Statutes. b. RETENTION OF RECORDS The Collier County LPPF 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. Collier County LPPF agrees to permit persons duly authorized by the Agency to inspect any records, papers, and documents of the Collier County LPPF which are relevant to this LOA. d. ASSIGNMENT AND SUBCONTRACTS The Collier County LPPF 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 small 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 Collier County LPPF 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. Collier County LPPF 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 LPPF_Region S_DPP LOA_SFY 2021-22 Packet Pg. 2971 16.D.11.1 7. Collier County LPPF agrees the following provision shall be included in any agreements between Collier County LPPF 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, 2021 through June 30, 2022 and shall be terminated June 30, 2022. 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 1 Amount State Fiscal Year 2021-2022 Year One DPP IGTs $6,687,755 1 Total Funding $6,687,755 IN WITNESS WHEREOF, the parties have caused this page Letter of Agreement to be executed by their undersigned officials as duly authorized. Collier County LPPF SIGNED BY: NAME: TITLE: DATE: ATTEST CRYSTAL K, KINZEL, CLERK BY: STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION SIGNED BY: NAME: TITLE: DATE: cri 0 co N Approved as to form and legality N N w Assistant County Attorney 0 a Collier County LPPF_Region 8_DPP LOA_SFY 2021-22 n 0 Packet Pg. 1130 16.D.11.1 r� U IGT Provider Name: Health Care Provider Name: IGT Amount: State Fiscal Year Ending: 1. Count Kj 3 f other, please explain No Amount $ 6,687,755 a. f other, please explain Yes f no, please explain 4. Does your organization have taxing authority? Yes 5. If the source of IGT funding is from taxes, please answer the following questions: a. Is the tax a state, county, city, or hospital district tax? N 00 N M U) w r c Q E s ca Q Packet Pg. 1131 16.D.11.1 Count If other, please explain b. What entities are taxed? c. vvr d. WI- Licensed non-public hospitals in Collier County iat is the tax structure i.e. property tax, percentage of revenue, assessment, etc.)? Special assessment iat is ine amount or percent or the tax r 1.11 % of Net Patient Revenue e. uoes at least tia -/o oT the DUraen oT the tax revenue Tau on neaan care proviaers as aeTlnea In 4z LrK §433.55? (Provide the total tax revenue and the health care provider tax burden) If so, please answer the following questions: Amount Total Tax Burden $ 9,327,890 Healthcare Provider Tax Burden $ 9,327,890 100.00% i) Is the tax broad based? A broad based tax can be defined as a tax that is imposed on at least all health care items or services in the class or providers of such items or services furnished by all non - Federal, non-public providers in the State, and is imposed uniformly, pursuant to 42 CFR § 433.68. Yes If no, please explain r a Packet Pg. 1132 16.D.11.1 ii) Is the tax uniform across all entities being taxed? Based on 42 CFR § 433.68, a health care -related tax will be considered to be imposed uniformly even if it excludes Medicaid or Medicare payments (in whole or in part), or both; or in the case of health care -related tax based on revenue or receipts with respect to a class of items or services, if it excludes either Medicaid or Medicare revenue with respect to a class of items or services, or both. The exclusion of Medicaid revenue must be applied uniformly to all providers being taxed. Yes If no, please explain iii) Is the tax generally redistributive and a waiver of the broad -based or uniform tax requirement was granted in accordance with 42 CFR §433.68(e)? No If no, please explain No waiver was requested iv) Does the tax program comply with the hold harmless provisions included in 42 CFR § 433.68(f)? Yes If no, please explain v) Does every tax paying entity receive a supplemental payment equal to or exceeding its tax cost? If yes, please explain The county is not involved in the distribution of funds following federal match. The county is not in position to speak to the ultimate distribution to hospitals from the managed care organizations. 6. Please answer the following regarding provider funds received from the healthcare entity and/or other health care entities. a. Are provider voluntary payments or in -kind services received by the organization as defined in 42 CFR § 433.52? No b. How much of the organization's revenue is received from provider -related donations (Provide the total revenue and the provider -related donation amounts)? Amount Total Revenue Provider Related Donations c. Do individual provider donations exceed $5,000 per year or $50,000 per year for a health care organizational entity? No Packet Pg. 1133 16.D.11.1 If yes, please list the provider and payment amount. Provider Name Funding Source Amount d. Does any portion of the provider donation constitute as a "bona fide donation" pursuant to 42 CFR § 433.54? 42 CFR § 433.54 requires donations will not be returned to the individual provider, the provider class, or related entity under a hold harmless provision. e. Is there an agreement between the IGT provider and the health care entity? If so, please specify whether the agreement is written and provide the details. Vo 7. Were funds utilized for the IGT specifically appropriated by the organization's board? No If yes, provide the board minutes and date of the appropriation. I certify that the statements and information contained in this submittal are true, accurate, and complete. Signature of Officer or Administrator Title Date m r N 00 N O� N W a+ C d E t v .r r a Packet Pg. 1134