Fiscal Year 2018 Budget Update Central Health Board of Managers - - PowerPoint PPT Presentation

Fiscal Year 2018 Budget Update

Central Health Board of Managers July 26, 2017 Jeff Knodel, CFO Lisa Owens, Interim Deputy CFO

How Central Health Leverages Public Funding

(FY 2016 Actuals)

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Central Health Funding

Disproportionate Share (DSH) $31,029,653 Uncompensated Care (UC) $42,934,389 Charity Care $4,251,733 DSRIP $22,825,048 Sendero Risk-based Capital $5,000,000 ACA Subsidized Premiums $269,836 DSRIP $27,674,195 CCC Member Payment $24,632,814

Total $158,617,668

Community Health Care Impact

Gross Hospital Costs $274,803,349 Hospital DSRIP $53,242,473 Sendero $85,974,331 CCC $123,674,725

Total $537,694,878

Hospital Services Health Coverage Ambulatory Care

Result: Central Health leverages public dollars to create 3.4 times their original value

Central Health FY 2018 Proposed Budget: Areas of Potential Risk

Local

• Adequate infrastructure to serve patient population
• Aging population
• Unanticipated delays to Central Health Brackenridge Campus redevelopment

State

• Property tax rate caps
• Limitations to health services funding

Federal

• Repeal and/or replacement of Affordable Care Act
• Possible changes to 1115 Medicaid Waiver

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FY 2018 Proposed Tax Rate

(4.5% over Effective Rate)

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FY17 FY18 (Proposed) Average Homestead Value $285,152 $305,173 Tax Rate 11.0541¢ 10.7385¢ Tax Bill $315.21 $327.71

Annual Increase = $12.50 (3.97%)

Central Health Property Tax Impact Statement: Fiscal Years 2017-2018

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Actual Appreciation Rate Home Value Taxable Homestead Value 4.5% Over Effective Tax Rate Tax Bill Annual Inc./(Dec.) Percent Inc./(Dec.)

• $200,000

$160,000 11.0541¢ $177

• $300,000

$240,000 11.0541¢ $265

• $400,000

$320,000 11.0541¢ $354

• $500,000

$400,000 11.0541¢ $442

• 9.00%

$218,000 $174,400 10.7385¢ $187 $10 5.9% 7.60% $322,800 $258,240 10.7385¢ $277 $12 4.5% 6.30% $425,200 $340,160 10.7385¢ $365 $12 3.3% 6.00% $530,000 $424,000 10.7385¢ $455 $13 3.0%

FY 2017 Baseline FY 2018

Central Health Tax Rate per $100 of Taxable Valuation

6 7.79 7.79 7.34 6.93 6.79 6.74 7.19 7.89 7.89 12.9 12.64 11.78 11.05 10.74 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cents Fiscal Year

FY 2018 Proposed Budget Property Tax Rate Update

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FY 2017 Approved Budget FY 2018 Proposed Budget Update Difference Tax Rate 11.0541¢ 10.7385¢ (0.3156¢) Property Taxes $169,806,722 $181,839,054 $12,032,332

Central Health FY 2018 Proposed Budget

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Description FY17 Approved Budget FY18 Proposed Budget (6/28/17) FY18 Proposed Budget (7/26/17) FY18 Proposed Budget Inc./(Dec.)

Tax Rate

0.110541

N/A

0.107385

Sources

Property taxes 169,806,722 181,271,359 181,839,054 567,695 Seton lease revenue 31,544,675 10,303,467 10,303,467

• Interest

400,000 400,000 400,000

• Tobacco litigation settlement

1,800,000 1,800,000 1,800,000

• Subtotal revenue

203,551,397 193,774,826 194,342,521 567,695 Contingency Reserve 36,600,000 57,886,845 57,886,845

• Total Sources

240,151,397 252,229,365 252,229,365 567,695

Uses

Health care delivery 229,738,205 240,293,811 241,433,090 1,139,279 Administration 8,926,601 9,715,099 9,143,516 (571,583) Tax collection 1,486,591 1,652,760 1,652,760

• Total Uses

240,151,397 251,661,670 252,229,365 567,695

Reserves

(ending balance)

Capital Reserve

• HMO Risk-based Capital Reserve
• Contingency Reserve
• Emergency Reserve

29,895,000 32,080,343 32,035,084 (45,259)

Total Reserves 29,895,000 32,080,343 32,035,084 (45,259)

Central Health FY 2018 Proposed Budget

Revisions from 6/28/17 presentation:

Sources

Increase property tax revenue: $568K

• Certified tax roll received and estimated total taxable assessed value greater

than initial budget

Uses

Increase Healthcare Delivery Operations: $1.1 million

• Adjust payroll allocations
• Increase in Contingency Appropriation for structural balance
• Slight Decrease in Emergency Reserve

Decrease administration: $572K

• Review payroll allocations

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Next Steps

ü May 24 — Central Health Board of Managers (5-year forecast) ü May 30 — Travis County Commissioners Court (FY 2017 update and FY 2018 budget guidelines) ü June 21 — Central Health Budget and Finance Committee (budget update) ü June 28 — Central Health Board of Managers (proposed budget) ü July 19 — Central Health Budget and Finance Committee (FY 2018 CCC proposed budget) ü July 26 — Central Health Board of Managers (FY 2018 CCC proposed budget and Central Health budget update)

• Aug. 9 —

Central Health Budget and Finance Committee (FY 2018 Central Health proposed budget and property tax rate)

• Aug. 16 — Central Health Board of Managers (FY 2018 Central Health proposed budget and

property tax rate)

• Aug. 22 — Travis County Commissioners Court (Central Health proposed budget and property

tax rate)

• Aug. 30 — First public hearing
• Sept. 6 —

Second public hearing

• Sept. 13 — Central Health Board of Managers (FY 2018 budget adopted)
• Sept. 19 — Travis County Commissioners Court (FY 2018 Central Health proposed

budget and property tax rate)

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(512) 978-8000 www.centralhealth.net @centralhealthtx