To

Mayor and Council

Subject

Intergovernmental Transfer to Hospital Authority of Columbus, Georgia

Initiator

Finance Department

Recommendation

Approve a Resolution authorizing a temporary intergovernmental transfer of \n \n $4,000,000 from the General Fund to the Hospital Authority of Columbus, Georgia \n \n (Muscogee Manor) to facilitate participation by the Hospital Authority in a \n \n federal program for government owned or operated nursing homes.

Approval

Approved

Background

The Federal Government has approved Upper Payment Limit Rate Adjustments

(Medicare/Medicaid) for government owned or operated nursing homes. The

Hospital Authority, Muscogee Manor, is a component unit of the Columbus

Consolidated Government and is eligible for approximately $7,177,212 in federal

funds for upper payment limit rate adjustments.

Analysis

Upper Payment Limit Rate Adjustment payments will be issued to government owned

or operated nursing homes on March 8, 2002 from the Federal Government through

the State of Georgia. In order to participate in the program, The Hospital

Authority must wire appr. 80% or $5,981,010 by March 1, 2002 to the Georgia

Department of Community Health, Division of Medical Assistance, in order to

receive the $7,177,212 on March 8, 2002.



The Hospital Authority does not have adequate cash to facilitate this

transaction and has requested that the Consolidated Government provide

temporary funding in the amount of $4,000,000. The Hospital Authority Board

will meet on Tuesday, February 26, 2002 to approve the repayment of the

temporary funding plus interest to the Consolidated Government.

Financial Considerations

The Hospital Authority will pay back the $4,000,000 plus interest at a rate of

two times the February 2002 Georgia Fund I rate. The Georgia Fund I rate for

January was 1.85% and is expected to be in that range for February. The

estimated interest pay back would be $4,460.26 for the period (February 28

through March 10) as compared to $2,230.13 that the same $4,000,000 would earn

in Georgia Fund I for the same time period. The only foreseeable risk is a

delay in the transaction between the federal and state government whereby the

funds would be transferred for longer than an eleven day period. The

Consolidated Government has adequate cash flow to compensate for a delay in

completion of the transaction and will continue to earn interest at two times

the Georgia Fund I rate until repayment occurs.

Projected Annual Fiscal Impact Statement

Legal Considerations

Section 4-621 of the Charter established the Hospital Authority and it is a

component unit of the Consolidated Government. Section 7-501 of the Charter

authorizes such transfers when in the public interest.

Recommendations/ Actions

Approve a Resolution authorizing a temporary intergovernmental transfer of

$4,000,000 from the General Fund to the Hospital Authority of Columbus, Georgia

(Muscogee Manor) to facilitate participation by the Hospital Authority in a

federal program for government owned or operated nursing homes.

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