REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Scott M. Haberle, Fire Chief
PREPARED BY: Jeff Lopez, Battalion Chief
Subject:
title
Approve an appropriation of $867,000 for the California Department of Health Care Services (DHCS) Public Provider Ground Emergency Medical Transport Intergovernmental Transfer Program (PP-GEMT IGT) for FY 2022/23.
body
Statement of Issue:
As stated on the DHCS website, the PP-GEMT IGT Program is anticipated to be implemented on January 1, 2023, contingent on federal approval.
With the New PP-GEMT IGT Program, it is expected that the City of Huntington Beach will receive an estimated $770,000 in new annual revenue above the previous GEMT Programs. This estimated $770,000 in new annual revenue amount is calculated after accounting for the $1,734,000 in expected annual invoices to cover the City’s anticipated non-federal share. It is anticipated that half of the annual $1,734,000, which would be $867,000, is expected to cover the City’s anticipated non-federal share for the remainder of FY 2022/23.
Staff requests to approve an appropriation of $867,000 for the PP-GEMT IGT Program to pay DHCS invoices in an expected amount of up to $867,000 to cover the City’s non-federal share described below for the remainder of FY 2022/23. Future costs of the PP-GEMT IGT Program will be incorporated in future years’ budgets.
Financial Impact:
A new appropriation of $867,000 is requested for the PP-GEMT IGT Program for the remainder of FY 2022/23. Future costs of the PP-GEMT IGT Program will be incorporated in future years’ budgets. Program revenues are anticipated to fully cover the requested appropriation with a net annual revenue of $770,000.
Recommended Action:
recommendation
Approve an appropriation of $867,000 for the PP-GEMT IGT Program for FY 2022/23.
end
Alternative Action(s):
Do not approve and direct staff accordingly
Analysis:
The following information was provided on the Department of Health Care Services’ website about the New PP-GEMT IGT Program (<https://www.dhcs.ca.gov/provgovpart/Pages/PPGEMTIGT.aspx>):
In accordance with Assembly Bill (AB) 1705 (Chapter 544, Statues of 2019), the Department of Health Care Services (DHCS) is developing the Public Provider Ground Emergency Medical Transport (PP-GEMT) Intergovernmental Transfer Program (IGT) program to provide increased reimbursements, by application of an add-on increase, to emergency medical transports provided by eligible public GEMT providers. The non-federal share collected will be used to provide an add-on increase to the fee-for-services (FFS) fee schedule rate for the affected emergency medical transport billing codes and a rating increment that will be applied to primary capitation rates for contracted Medi-Cal plans.
Currently, the Fire Department receives a $220 add-on pursuant to the GEMT QAF Program. Once the New PP-GEMT IGT Program is implemented on January 1, 2023, public providers will no longer be eligible to receive the $220 add-on from GEMT QAF Program and will no longer be able to participate in the GEMT CPE Program. However, agencies will be invoiced quarterly and will receive a reimbursement add-on of $946 instead under the New PP-GEMT IGT Program.
The New PP-GEMT IGT Program $946 add-on applies to more cases than the previous GEMT QAF Program. The previous GEMT QAF Program revenue was approximately $100,000 annually. The New PP-GEMT IGT Program revenue is estimated to be $770,000 annually. Staff recommends appropriation approval for the PP-GEMT IGT Program due to the previous GEMT QAF and GEMT CPE programs ending and due to the PP-GEMT IGT Program offering a greater net revenue than the previous GEMT QAF and GEMT CPE programs as illustrated in the following table:
Staff requests to approve an appropriation of $867,000 for the PP-GEMT IGT Program to pay FY 2022/23 DHCS invoices in an expected amount of up to $867,000 to cover the City’s non-federal share. If the invoices total less than $867,000, then the remaining funds will not be expended and will be reverted back to the original appropriation. The City of Huntington Beach retains the right to withhold invoice payments in this voluntary program if the non-federal share exceeds the expected amount. The City of Huntington Beach Fire Department and Finance Department will analyze the PP-GEMT IGT Program and its financial impact on a quarterly basis.
Environmental Status:
Not applicable
Strategic Plan Goal:
Financial Sustainability, Public Safety or Other
Attachment(s):
1. PowerPoint Presentation on the New PP-GEMT IGT Program