Title
Ordinance No. 17-43 amending Ordinance No. 16-116 (2017 Appropriation Ordinance) for a Supplemental Appropriation to the Memorial Health System Enterprise Fund in the Amount of $2,581,000 to Pay Costs Related to Third-Party Payor Audits and to Transfer monies to the Colorado Springs Health Foundation
Presenter:
Kara Skinner, Chief Financial Officer
Body
Summary:
The attached ordinance is to increase the 2017 Memorial Health System Enterprise Fund budget and to appropriate monies in the amount of $2,581,000 to pay costs related to third-party payor audits and to transfer monies to the Colorado Springs Health Foundation (CSHF). The source of funds is a transfer from UCH-MHS received by the City in April 2017.
According to the lease, Schedule 3.6.8 Obligations and Liabilities Related to Third-Party Payors, the Parties agreed to reconcile UCH-MHS net actual receivables received and liabilities paid out to the amount accrued in the Memorial Health System financial statements on the effective date of the lease. UCH-MHS and the City met and agreed on the first reconciliation in 2016 and again for a second reconciliation in 2017.
The net result of the first reconciliation was an amount due to the City of approximately $5,264,000. Of the $5,264,000, $298,000 was paid to a contract audit firm that assisted MHS with audits of a number of third-party cost reports that resulted in positive settlements. The balance of $4,966,000 was transferred to the Colorado Springs Health Foundation in 2016.
The net result of the second reconciliation was an amount due to the City of approximately $2,581,000. Of the $2,581,000, $35,000 will be paid to a contract audit firm that assisted MHS with audits of a number of third-party cost reports that resulted in positive settlements. The balance of $2,546,000 will be transferred to the Colorado Springs Health Foundation.
As some third-party cost reports remain open, UCH-MHS and the City will again reconcile when ...
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