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HomeMy WebLinkAboutAgenda Report - June 3, 2015 C-1111 AGENDA ITEM C 0, &J& CITY OF LODI %W COUNCIL COMMUNICATION TM AGENDA TITLE: Authorize City Manager to Enter into a Memorandum of Understanding with Lodi Memorial Hospital Association, Inc., Enabling Federally -Funded Low -Income Prescription Discounts MEETING DATE: June 3, 2015 PREPARED BY: Business Development Manager RECOMMENDED ACTION: Authorize City Manager to enter into a Memorandum of Understanding with Lodi Memorial Hospital Association, Inc., enabling federally -funded low-income prescription discounts. BACKGROUND INFORMATION: Lodi Memorial Hospital Association, Inc., is requesting the City's support of their participation in the Federal 340B drug discount program under the Public Health Services Act. The 340B program requires drug manufacturers to provide outpatient drugs to eligible health care organizations/covered entities, including public and private non-profit disproportionate share hospitals, at significantly reduced prices. On average, the discounts are 15 to 20 percent off of hospital group purchasing prices. In order to qualify for participation in the program, Lodi Memorial Hospital Association, Inc., is required to demonstrate the support of a state or local governmental entity in the form of an agreement or Memorandum of Understanding outlining their commitment to provide health care services to low-income individuals without Medicare or Medi -Cal benefits at no reimbursement or considerably less than full reimbursement from these individuals. FISCAL IMPACT: Not applicable. Acknowledging the City's support of Lodi Memorial Hospital Association, Inc.'s participation in the program does not include the commitment of City resources; financial or otherwise. FUNDING AVAILABLE: Not applicable. AB Attachment JAYUL,,.- Adam Brucker Business Development Manager �W-T-1t, Mllma= MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF LODI, a California municipal corporation UNNK LODI MEMORIAL HOSPITAL ASSOCIATION, INC. THIS MEMORANDUM OF UNDERSTANDING ("MOU") is made this day of , 2015 by and between the undersigned representatives of the CITY OF LODI, a California municipal corporation ("Lodi"), whose administrative offices are located at City Hall, 221 West Pine Street, Lodi, California, 95240 and LODI MEMORIAL HOSPITAL ASSOCIATION, INC., ("LMHA") a non-profit, public benefit corporation organized and existing under the laws of the State of California, located at 975 South Fairmont Avenue, Lodi, California, 95240. RECITALS WHEREAS, LMHA is a not-for-profit hospital that provides a disproportionate share of healthcare services to the Medicare and Medi -Cal population in addition to supporting many programs that benefit the indigent, uninsured or underinsured population in the City of Lodi; WHEREAS, LMHA desires to participate in the drug discount program established under Section 340B of the Public Health Services Act (the "340B Program"); WHEREAS, in order to participate in the 340B Program LMHA must enter into an agreement with a unit of government pursuant to which LMHA commits to provide health care services to low-income individuals without Medicare or Medi -Cal benefits at no reimbursement or considerably less than full reimbursement from these individuals; WHEREAS, LMHA desires to make such a formal commitment to Lodi; and WHEREAS, Lodi agrees to accept such commitment on behalf of the residents of Lodi. NOW, THEREFORE, in consideration of the mutual agreements and covenants contained herein and for other good a valuable consideration, the receipt and sufficiency of which hereby are acknowledged, it is mutually agreed , by and between the parties to this MOU, as follows: 1. Commitment of LMHA to Provide Indigent Care. During the term of this MOU, LMHA agrees to continue its historical commitment to the provision of health care to indigent, uninsured and underinsured patients by adhering to the LMHA Community Benefit Plan. During the fiscal year ending December 2014, LMH provided at least $1 million in traditional charity care. Pursuant to its commitment to continue to provide indigent care, it is LMHA's intention that indigent care provided during the term of this MOU will be consistent with its historical commitment, a minimum of $1 million per year. In any event, LMHA will ensure that all patients presenting to its Emergency Department shall continue to receive necessary care, as required by law, regardless of ability to pay. 2. Acceptance and Acknowledgements of Lodi. (a) Lodi accepts the commitment of LMHA set forth above; (b) Lodi hereby acknowledges that the health care services provided by LMHA hereunder are in the public interest and based on the representations of LMHA are being provided to individuals who are neither entitled to Medicare or Medi -Cal benefits; and (c) Based on the representations of LMHA, Lodi acknowledges that LMHA is providing these services at no reimbursement or considerably less than full reimbursement from the patients. 3. Representations of LMHA. LMHA represents that as of the date hereof: (a) LMHA constitutes a non-profit corporation duly organized and validly existing in good standing under the laws of the State of California with the corporate power and authority to enter into and perform its obligations under this MOU; and (b) LMHA is a tax-exempt corporation of under Section 501(c)(3) of the Internal Revenue Code of the United States, as amended and under applicable laws of the State of California. 4. Term and Termination. The term of this MOU shall commence on the date set forth above and shall continue until terminated by either party upon not less than sixty (60) days prior written notice to the other party. 5. Notice. All notices required or permitted to be given under this MOU shall be deemed given when delivered by hand or sent by registered or certified mail, return receipt requested, addressed as follows: If sent to Lodi: City of Lodi Attention: City Manager PO Box 3006 Lodi, CA 95240 2 If sent to LMHA: Lodi Memorial Hospital Association, Inc. Attention: President/CEO 975 South Fairmont Avenue Lodi, CA 95240 6. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, excepting any conflict of laws provisions which would serve to defeat application of California substantive law. IN WITNESS WHEREOF, LMHA and the City of Lodi have executed this MOU as of the day and year first written above by their duly authorized representatives. LODI MEMORIAL HOSPITAL ASSOCIATION, INC. Name: JOSEPH P. HARRINGTON Title: President / CEO CITY OF LODI, a California municipal corporation Name: STEPHEN SCHWABAUER Title: City Manager Attest: JENNIFER FERRAIOLO City Clerk APPROVED AS TO FORM: JANICE D. MAGDICH City Attorney 3