Title
Ordinance No. 16-37 amending Ordinance No. 15-86 (2016 Appropriation Ordinance) for a Supplemental Appropriation to the Memorial Health System Enterprise Fund in the Amount of $5,264,000 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 2016 Memorial Health System Enterprise Fund budget and to appropriate monies in the amount of $5,264,000 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 February 2016.
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.
The net result was an amount due to the City of approximately $5,264,000. Of the $5,264,000, $298,000 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 $4,966,000 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 a number of those have finally settled.
Previous Council Action:
On October 1, 2012, the City of Colorado Springs executed the Memorial Health System (MHS) Operating Lease Agreement and the Integration and Affiliation Agreement by and among the City of Colorado Springs, University of Colorado Health, Poudre Valley Health Care, Inc., and UCH-MHS.
City Council authorized and directed that such funds and monies from the lease be placed into a...
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