Explanation
This ordinance authorizes the Director of the Department of Finance and Management to enter into a not-for-profit service contract with the Central Ohio Hospital Council to cover the administrative costs related to the identification and notification of the forgiveness of medical debt for qualifying Columbus residents.
The Central Ohio Hospital Council a 501(c)(3) organization that facilitates collaboration between area hospitals and community stakeholders to improve the quality, value, equity, and accessibility of health care in the region. Its four members include Mount Carmel Health System, Nationwide Children’s Hospital, The Ohio State University Wexner Medical Center, and OhioHealth.
Columbus City Council has worked with the Central Ohio Hospital Council and its members to coordinate a large-scale debt forgiveness for Columbus residents who earn less than 400% of the federal poverty level. Under the hospitals’ existing policies, those earning less than 200% of the federal poverty level already fall under charity care and do not hold medical debt from these hospitals. Debt forgiveness is targeted at those who received care from 2015 through 2020.
Central Ohio Hospital Council expects that 340,660 Columbus residents will receive debt forgiveness, with the average recipient receiving forgiveness in the amount of $984. The total amount of debt forgiven across the four hospitals is expected to be $335,213,212.00. In partnership with its members, the Central Ohio Hospital Council will work with a third party to validate patient data in order to mail notification letters of the debt forgiveness. Individuals will not need to take any further action.
This contract will support the validation of patients’ income and address data and mailing costs of notification letters. The hospitals are supplying the staff and time to execute this data collection and notification process. Coordination of data collection and the notification process from the various participants cannot logistically be completed by existing city employees.
Fiscal Impact: Funding is available within the general fund.
Emergency Justification: It is essential to notify residents of a relieved liability as soon as possible in order to reduce confusion and provide increased financial stability. Therefore, this contract must be executed as quickly as possible.
Title
To authorize the Director of the Department of Finance and Management to enter into a not-for-profit service contract with the Central Ohio Hospital Council; to authorize the transfer of $500,000.00 within the General Fund; to authorize the expenditure of up to $500,000.00 from the general Fund; and to declare an emergency. ($500,000.00)
Body
WHEREAS, Columbus City Council seeks to build pathways out of poverty, promoting financial stability and empowerment for all Columbus residents; and
WHEREAS, according to a study published in the Journal of the American Medical Association in September 2022, medical debt disproportionately affects women, people of color, and households earning less than 400% of the federal poverty level; and
WHEREAS, according to the same study, medical debt may be associated with the subsequent worsening of social determinants of health, including food insecurity and housing instability; and
WHEREAS, over 300,000 Columbus residents who earn less than 400% of the federal poverty level are holding medical debt that impacts their overall financial well-being; and
WHEREAS, COVID-19 began spreading rapidly through Ohio in March 2020, rapidly exacerbating the number of hospitalizations of and amount of medical debt held by Columbus residents; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to authorize the Director to enter into a not-for-profit service contract in order to reduce confusion and make residents immediately aware of their relieved liability, all for the immediate preservation of the public health, peace, property, safety, and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Finance and Management is hereby authorized to enter into a not-for-profit service contract with the Central Ohio Hospital Council for administrative costs related to the forgiveness of delinquent medical debt of qualifying Columbus residents.
SECTION 2. That the transfer of $500,000.00, or so much thereof as may be needed pursuant to the action(s) authorized in SECTION 1 above, is hereby authorized within the General Fund 1000, per the accounting codes in the attachment to this ordinance.
SECTION 3. That for the purpose stated in Section 1, the expenditure of up to $500,000.00, is hereby authorized in the general fund per the accounting codes in the attachment to this ordinance.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.