HomeMy WebLinkAbout2006-26393 Reso
RESOLUTION NO. 2006-26393
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
CITY MANAGER TO EXECUTE THE ATTACHED
MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE
CITY OF MIAMI BEACH AND MOUNT SINAI MEDICAL
CENTER OF. FLORIDA, INC (MOUNT SINAI),
ACKNOWLEDGING THE COMMITMENT OF MOUNT SINAI TO
PROVIDE HEALTH CARE SERVICES TO LOW INCOME
INDIVIDUALS THAT ARE NOT ENTITLED TO MEDICARE OR
MEDICAID BENEFITS AT NO REIMBURSEMENT OR
CONSIDERABLY LESS THAN FULL REIMBURSEMENT FROM
SUCH PATIENTS; SAID MOU BEING A REQUIREMENT OF
MOUNT SINAI'S PARTICIPATION IN THE DRUG DISCOUNT
PROGRAM ESTABLISHED UNDER SECTION 340B OF THE
VETERAN'S HEALTH CARE ACT (340B PROGRAM).
WHEREAS, Mount Sinai Medical Center (Mount Sinai) is a Florida not-for-profit hospital
that provides healthcare services to the Medicare population in addition to supporting many
programs that benefit the indigent, uninsured or underinsured population; and
WHEREAS, Mount Sinai desires to participate in the drug discount program established
under Section 340B of the Veteran's Health Care Act (the 340B Program); and
WHEREAS, in order to participate in the 340B Program, Mount Sinai must enter into an
agreement with a unit of State or local government pursuant to which Mount Sinai commits to
provide tlealth care services to low income individuals who are not entitled to Medicare or
Medicaid benefits at no reimbursement or considerably less than full reimbursement from these
patients; and
WHEREAS, Mount Sinai seeks to establish a formal Memorandum of Understanding with
the City of Miami Beach documenting their provision of health care to low income individuals; and
WHEREAS, Miami-Dade County has executed similar agreements with Jackson
Memorial Hospital and Baptist Hospital.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission authorize the City
Manager to execute the attached Memorandum of Understanding (MOU) between the City of
Miami Beach and Mount Sinai Medical Center of Florida, Inc., acknowledging the commitment of
Mount Sinai to provide health care services to low income individuals that are not entitled to
Medicare or Medicaid benefits at no reimbursement or considerably less than full reimbursement;
said MOU being a requirement of Mount Sinai's participatia in the drug discount program
established under Section 340b of the Veteran's Health Care If.. t.
PASSED and ADOPTED this 6th
May~r APPROVED AS TO
Dav~d DermroRM & LANGUAGE
& FOR EXECUTION
J.
:(Cbo f~~
City Clerk
Robert Parcher
F:\ECON\$ALL\KEVIN\Correspondence\ReSOS and CMs\2006 national heritage area. doc
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving a Memorandum of Understanding (MOU) between the City and Mount Sinai
Medical Center, acknowledging the hospital's commitment to provide health care services to low
income individuals.
Ke Intended Outcome Su orted:
Increase resident ratings of public safety services.
Issue:
Shall the Mayor and City Commission approve a Memorandum of Understanding between the City
and Mount Sinai for the provision of health care to low income individuals, allowing Mount Sinai's
artici ation in the 340b dru ricin ro ram?
Item Summary/Recommendation:
The 340B Drug Pricing Program was established in response to the passage of Section 340B of U.S.
Public Law 102-585, the Veterans Health Care Act of 1992. Section 340B of this law limits the cost of
drugs to federal purchasers and to certain grantees of federal agencies. Significant savings on
pharmaceuticals may be seen by those entities who participate in this program.
The 340b drug pricing program resulted from enactment of the Veteran's Health Care Act of 1992, and
provides for discount outpatient drug pricing for covered entities enrolled in the 340b program. One of the
requirements for enrollment is that the hospital must have a contract with a local government to provide
health care services to low income individuals who are not eligible for Medicare or Medicaid. Mount Sinai
has requested that the City establish a formalized MOU between the City and Mount Sinai.
In 2005, Mount Sinai provided $7.9 million of charity care and an additional $33.5 million of
uncompensated care that was not reimbursed by traditional safety net programs. In summary, the
attached MOU documents the hospital's desire to make a formal commitment to the City of Miami
Beach for the provision of health care services to low income individuals, and acknowledges the
City's acceptance of said commitments.
Advisory Board Recommendation:
I N/A
Financial Information:
Source of Amount Account Approved
Funds: 1
CJ 2
3
4
OBPI Total
Financial Impact Summary:
Cit Clerk's Office Le islative Trackin
Kevin Crowder, Economic Development
n-Offs:
Department Director
City Manager
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MIAMI BEACH
AGENDA nEM
DATE
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MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
DATE:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager ~ ~
December 6,2006 0
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE
THE ATTACHED MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN
THE CITY OF MIAMI BEACH AND MOUNT SINAI MEDICAL CENTER OF
FLORIDA, INC (MOUNT SINAI), ACKNOWLEDGING THE COMMITMENT OF
MOUNT SINAI TO PROVIDE HEALTH CARE SERVICES TO LOW INCOME
INDIVIDUALS THAT ARE NOT ENTITLED TO MEDICARE OR MEDICAID
BENEFITS AT NO REIMBURSEMENT OR CONSIDERABLY LESS THAN FULL
REIMBURSEMENT FROM SUCH PATIENTS; SAID MOU BEING A
REQUIREMENT OF MOUNT SINAI'S PARTICIPATION IN THE DRUG
DISCOUNT PROGRAM ESTABLISHED UNDER SECTION 340B OF THE
VETERAN'S HEALTH CARE ACT (340B PROGRAM).
TO:
FROM:
SUBJECT:
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANAL YSIS
On November 7, 2006, the Administration received a letter (attached) from Steven D.
Sonenreich, CEO of Mount Sinai Medical Center, requesting that the City of Miami Beach
enter into a Memorandum of Understanding (MOU) with the hospital as a requirement for
participation in the 340b drug pricing program.
The 340b drug pricing program resulted from enactment of the Veteran's Health Care Act of
1992, and provides for discount outpatient drug pricing for covered entities enrolled in the
340b program. One of the requirements for enrollment is that the hospital must have a
contract with a local government to provide health care services to low income individuals
who are not eligible for Medicare or Medicaid. Mount Sinai has requested that the City
establish a formalized MOU between the City and Mount Sinai.
In 2005, Mount Sinai provided $7.9 million of charity care and an additional $33.5 million of
uncompensated care that was not reimbursed by traditional safety net programs. In
summary, the attached MOU documents the hospital's desire to make a formal commitment
to the City of Miami Beach for the provision of health care services to low income individuals,
and acknowledges the City's acceptance of said commitments. Pursuant to the MOU:
1. Mount Sinai agrees to continue its provision of health care to indigent, uninsured and
underinsured residents of the Miami Beach, which the hospital anticipates will range
between $5 million and $7.9 million annually, although the hospital will assume that
all patients will receive necessary care, as required by law, regardless of ability to
pay.
2. The City of Miami Beach accepts the commitment of Mount Sinai as stated above.
3. The City acknowledges that the healthcare services provided by the hospital in this
agreement are in the public interest.
4. The City acknowledges that Mount Sinai is providing these services at no
reimbursement or considerably less than full reimbursement.
5. Either party may terminate the MOU with sixty (60) days notice.
The federal 340B Drug Pricing Program provides access to reduced price prescription drugs
to over 12,000 health care facilities certified by the U.S. Department of Health and Human
Services (HHS) as "covered entities". These clinics, centers and hospitals in turn serve more
than 10 million people in all 50 states, plus commonwealths and territories.
According to the Office of Pharmacy Affairs (Dept of Health & Human Services), the 340B
Drug Pricing Program was established in response to the passage of Section 3408 of U.S.
Public Law 102-585, the Veterans Health Care Act of 1992. Section 340B of this law limits
the cost of drugs to federal purchasers and to certain grantees of federal agencies.
Significant savings on pharmaceuticals may be seen by those entities who participate in this
program.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the attached
Memorandum of Understanding.
JMGITH/kc
T:\AGENDA\2006\dec0606\Regular\Mount Sinai 3408 MOU Memo.doc
MEDICAL
C E N T E R
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Mount Sinai
November 7, 2006
Jorge M. Gonzalez
City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Jose Smith
City Attorney
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Dear Jorge and Jose:
Mount Sinai Medical Center has an opportunity to further enhance its community benefit
by enrolling and participating in the 340b drug pricing program which would make the
hospital eligible for discount outpatient drug pricing benefiting indigent, uninsured and
under-insured residents of Miami Beach.
By way of background, the 340b drug pricing program (the "340b Program") resulted
from enactment of public law 102-585, the Veteran's Health Care Act of 1992; and
provides for discountoutpatient drug pricing for covered entities enrolled in the 340b
Program. Mount Sinai Medical Center is desirous of becoming a "covered entity" under
the applicable definition and requirements of the 340b Program.
One of the requirements for enrollment in the 340b Program is that Mount Sinai Medical
Center must have a contract with a local government to provide health care services to
low income individuals who are not eligible for Medicare or Medicaid. Accordingly,
Mount Sinai Medical Center hereby requests your approval to establish a formalized
Memorandum of Understanding between the City of Miami Beach and Mount Sinai
Medical Center.
Other hospitals in the Miami-Dade County community that participate include Jackson
Memorial Hospital and Baptist Hospital. The attached draft Memorandum of
Understanding is similar to a 340b Memorandum of Understanding between Baptist
Hospital and Miami-Dade County, a copy of which is also attached hereto.
Mounl Sinai Campus
4300 Alton RO.ld
Miami Ik.Hh. FL n 140
Phone: .~()5-674-2121
Miami ~iPart Campus
470 I N. M~'ridi.lIl Avenue
Miami Bt',lCh, FL :n 140
Phone: ]05-672-1111
Mount Sinai AvenlUra
2845 Avenlura Boulevard
Aventura, FL 31180
Phone: 305-<J32-2099
WWVV.fllsnH .COIl1
Page 2
November 7, 2006
Jorge M. Gonzalez
Jose Smith
In 2005, Mount Sinai provided $7.9 million of charity care and an additional $33.5
million of uncompensated care to the community that was not reimbursed by traditional
safety net programs.
We ask for your approval and execution ofa Memorandum of Understanding with Mount
Sinai Medical Center so that Mount Sinai will be able to meet the requirements of the
340b Program.
Thank you very much for your continued support. If you have any questions, please do
not hesitate to contact me at 305-674-2223.
Si7Y'
Steven D. Sonenreich
President and Chief Executive Officer
MEMORANDUM OF UNDERSTANDING
BETWEEN
CITY OF MIAMI BEACH
AND
MOUNT SINAI MEDICAL CENTER OF FLORIDA, INC.
THIS MEMORANDUM OF UNDERSTANDING is made this day of
, 2006 by and between the undersigned representatives of the City of Miami
Beach, Florida ("COMB"), located at 1700 Convention Center Drive, Miami Beach,
Florida 33139, and Mount Sinai Medical Center of Florida, Inc. ("HOSPITAL"), a non-
profit corporation organized and existing under the laws of the State of Florida, located at
4300 Alton Road, Miami Beach, Florida 33140.
WHEREAS, HOSPITAL is a Florida not-for-profit HOSPITAL that provides a
disproportionate share of healthcare services to the Medicare population in addition to
supporting many programs that benefit the indigent, uninsured or underinsured
population in the State of Florida;
WHEREAS, HOSPITAL 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, HOSPITAL must enter
into an agreement with a unit of the state or local government pursuant to which
HOSPITAL commits to provide health care services to low income individuals who are
not entitled to Medicare or Medicaid benefits at no reimbursement or considerably less
than full reimbursement from these patients;
WHEREAS, HOSPITAL desires to make such a formal commitment to COMB,
and
WHEREAS, COMB agrees to accept such commitments on behalf of the citizens
of COMB.
NOW, THEREFORE, in consideration of the mutual agreements and covenants
contained therein and for other good and valuable consideration, the receipt and
sufficiency of which hereby are acknowledged, it is mutually agreed and covenanted,
under seal, by and between the parties to this Agreement, as follows:
1
1. Commitment of HOSPITAL to Provide Indigent Care.
During the term of this MOU, HOSPITAL agrees to continue its historic
commitment to the provision of health care to indigent, uninsured and
underinsured residents of COMB. In 2005, this commitment totaled more than
$7.9 Million in foregone charges. Pursuant to this commitment, it is the intention
of HOSPITAL that indigent uninsured care provided during the term of this MOU
will range generally between $5.0 Million and $7.9 Million annually. In any
event, HOSPITAL will assume that all patients will receive necessary care, as
required by law, regardless of ability to pay.
2. Acceptance and Acknowledgements of COMB
(a) COMB accepts the commitment of HOSPITAL set forth above;
(b) COMB hereby acknowledges that the healthcare services provided by
HOSPITAL hereunder are in the public interest and are being provided to
individuals who are not entitled to benefits under Title XVIII or eligible
for assistance under any State plan pursuant to Title XIX of the Social
Security Act; and
(c) COMB acknowledges that HOSPITAL is providing these services at no
reimbursement or considerably less than full reimbursement from the
patients.
3. Representations of HOSPITAL
HOSPITAL represents that as of the date hereof:
(a) HOSPITAL constitutes a corporation duly organized and validly existing
in good standing under the laws of the State of Florida with the corporate
power and authority to enter into and perform its obligations under this
MOU; and
(b) HOSPITAL 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 Florida.
4. Term and Termination. The term of this MOU shall commence on the date first
above written and shall continue until terminated by either party upon not less
than sixty (60) days prior written notice to the other.
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:
2
Sent to:
City of Miami Beach
Attention: Jorge M. Gonzalez
City Manager
Office of the City Manager
1700 Convention Center Drive
Miami Beach, Florida 33139
Sent to:
Mount Sinai Medical Center of Florida, Inc.
Attention: Alexander A. Mendez
Senior Vice President & Chief Financial Officer
4300 Alton Road
Miami Beach, Florida 33140
With a copy to:
Arnold Jaffee
General Counsel
Mount Sinai Medical Center
4300 Alton Road
Miami Beach, Florida 33140
6. Governing Law. This MOD shall be governed by and construed in accordance
with the laws of the State of Florida (excepting any conflict of laws provisions
which would serve to defeat application of Florida substantive law).
3
IN WITNESS WHEREOF, HOSPITAL and COMB have executed this
Agreement as of the day and year first written above by their duly authorized
representatives.
Mount Sinai Medical Center of Florida, Inc.
St~fsonemeiCh
President & CEO
Name:
Title:
Witnesses:
/'
,/
City of Miami Beach
<
=
Name: Jorge M. Gonzalez
Title: City Manager
Attest:
4
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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