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Home My WebLink About3.5 HealthCareServicesTax CITY CLERK File # ~_O [~-]-~_J~ ~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 17, 2004 SUBJECT: Presentation on Measure A - Essential Health Care Services Tax Initiative Report Prepared By: Richard C. Ambrose, City Manager ATTACHMENTS: Alameda County Fact Sheet RECOMMENDATION:/~ Receive Presentation FINANCIAL STATEMENT: None DESCRIPTION: Alameda County Supervisor Nate Miley will make a presentation regarding the County's Essential Health Care Services Tax Initiative - Measure A, that will appear on the March 2, 2004 California State Primary Election ballot. The initiative is intended to provide additional support for health services to low-income and uninsured residents of Alameda County through a half percent (.5%) sales tax increase throughout Alameda County. It is estimated that $90 million would be generated annually. Seventy-five (75%) of the revenues collected would be dedicated exclusively to the Alameda County Medical Center. The remaining twenty-five (25%) would be distributed among Alameda County health care institutions based on a needs assessment and geographic equity criteria. A Citizens Oversight Committee would be appointed by the Board of Supervisors to monitor how revenue from the tax is spent to ensure compliance with Measure A guidelines. If approved, the new tax'would become effective July 1, 2004 and sunset on June 30, 2019. Measure A requires a two-thirds vote for passage. COPIES TO: ITEM NO. ~ H/cc-forms/agdastmt. doc I ~r~l Alameda County Fact Sheet Essential Health Care Services Tax Initiative - Measure A Purpose of the Initiative The initiative is intended to provide additional support for emergency medical, hospital, inpatient, outpatient, public health, mental health and substance abuse services to indigenL Iow-income and uninsured adults, children, families, seniors and other residents of Alameda County. General Provisions of the Initiative & Use of Revenue · This initiative would add one half of one percent (0.5%) to the County's present sales tax for personal property sold in the cities and unincorporated areas of Alameda County. As a result, an estimated $90 million would be generated annually. · Seventy-five percent (75%) of the revenues collected would be dedicated exclusively to the Alameda County Medical Center, which includes Highland Hospital, its emergency services and on-site clinics; Fairmont Hospital and the Skilled Nursing Facility; the John George Psychiatric facility; and outpatient clinics in Oakland, Newark and Hayward. · The other twenty-five percent (25%) of the funds collected would be distributed using a needs assessment and geographic equity criteria. Monies would be allocated among health care institutions, including hospitals, clinics and community-based health care organizations to pay for medical, mental health and substance abuse services and uncompensated emergency care at hospitals throughout the County. · A Citizens Oversight Committee would be appointed by the Board of Supervisors. The Committee would monitor how revenue from the tax is spent to ensure compliance with the voter-approved Initiative. The Committee would report its findings to the Board. · If approved by the voters, the new tax would become effective July 1~ 2004 and "sunset" (or end) on June 30~ 2019. Initiative on March 2, 2004 Ballot The Board of Supervisors has voted to place this initiative on the March 2, 2004 ballot of the California State Primary Election. Because the Essential Health Care Services Tax would be used for dedicated purposes, a two-thirds vote is required for passage. January 12, 2004 County of Alameda Essential Health Care Services Initiative Frequently Asked Questions What is the Essential Health Care Tax Initiative? Alameda County' s Measure A is an Initiative that proposes to provide additional support for emergency medical, hospital, inpatient, outpatient, public health, mental health 'and substance abuse services to indigent, Iow-income and uninsured adults, children, families, seniors and other residents of Alameda County, If approved, the Initiative would add one half of one percent (0.5%) to the County's present sales tax. How much money will the Initiative raise annually? An estimated $90 million dollars. Who will pay the tax? This is a half percent tax on sales, paid at the time of purchase of a taxable item. How much of the revenue will be spent to support the Alameda County Medical Center? Seventy-five percent (75%) will be designated to support the services of the Alameda County Medical Center. How will the remainder of the revenue be spent? The other twenty-five percent (25%) of the funds collected would be distributed using a needs assessment and geographic equity criteria. Monies would be allocated among hospitals, clinics and community-based health care organizations to pay for medical, mental health, substance abuse services and uncompensated emergency care at hospitals throughout the County. ~yhen.will collection of the tax begin? What is the "sunset" provision? ~f approved by the voters, collection of the tax will begin on July 1, 2004 and end or "sunset" on June 30, 2019. Will the community help oversee how tax monies are spent? Yes; the Board of Supervisors will appoint a Citizens Oversight Committee. The Committee will monitor how revenue from the tax is spent, to be sure it complies with the voter-approved Initiative. The Committee will report its findings to the Board. When will the public get a chance to vote on the Initiative? During the California State Primary Election ballot on Tuesday, March 2, 2004. Can a simple majority of voters pass the measure or will it take a two-thirds majority? Because the revenues from the tax will have designated purposes, the Initiative will need a two-thirds majority vote for approval. Where can I find more information? You may contact the office of Alameda County Board of Supervisors President Gail Steele at (510) 272-6692. -over- The Alameda County Medical Center What is the Alameda County Medical Center? The Alameda County Medical Center (ACMC) provides inpatient and outpatient care for residents throughout the County. It includes Highland Hospital and its trauma center and clinics; Fairmont Hospital and the Skilled Nursing Facility located there; the John George Psychiatric Pavilion; and freestanding outpatient clinics located in Oakland, Hayward and Newark. What services does the Medical Center provide? ACMC provides more than 40 different primary and medical specialty services. These include, among others, an emergency trauma center (at Highland) where anyone in a car accident or who is a victim of a violent crime might be sent; inpatient medical/surgical care; psychiatric services; dental and optometry care; and long-term care at Fairmont's Skilled Nursing Facility. Additionally, Highland Hospital is a nationally recognized teaching and training facility with accredited programs in emergency medicine; surgery; internal medicine; primary care and oral and maxillofacial surgery. From January through November 2003 the Medical Center provided over 48,000 patient bed days; handled more than 30,000 emergency medical cases; and took care of more than 115,000 patient visits to its clinics. How is the Medical Center funded? ACMC's revenue is derived from various federal and State insurance programs (Medi-Cal, Medicare) for patients who qualify and from patients with private insurance. Additionally, the County contracts with the Medical Center for the treatment of all who qualify for the County Medical Services Program (CMSP) and indigent patient services. The County also contracts with the Medical Center for the provision of other services, such as care for certain patients at the Skilled Nursing Facility, the John George Psychiatric Pavilion and the Highland trauma center; and for juvenile justice medical programs. What is the Medical Center's deficit for the 2003-04 fiscal year? An estimated $71.6 million. What caused the Medical Center's deficit? Like public hospital systems across the State and the nation, the ACMC is faced with shrinking federal and State support; a higher number of uninsured or under-insured patients; and a higher cost of doing business. The Medical Center provides 80°/$ of the hospital-based uncompensated care in the County, including services to those who are employed but uninsured. County data shows that at any given time, 12% to 16% of the County's residents are uninsured. ACMC's Board of Trustees and its management staff have proposed numerous cost-cutting and revenue enhancement strategies. A number of these are labor negotiation items; all proposals are currently under consideration. What kind of financial support does the County provide for the Medical Center? The County has spent more than $308 million to support the Medical Center over the last five years. That amount includes capital projects; $150 million in loans to support day-to-day operations; and $6.5 milton to support the Skilled Nursing Facility. Additionally, this fiscal year the County will spend more than $102 million for contracted services at the Medical Center. The County's own austere budget does not, however, have sufficient funds available to continuously cover the Medical Center's growing deficit. Any attempt to address the deficit would necessitate significant cuts in other County programs. · January 12, 2004