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Committee backs limited authority for DPH to enter managed-care contracts, with reporting limits
Summary
The committee approved the budget analyst's suggested amendments to an ordinance authorizing the Department of Public Health to enter managed-care contracts and forwarded the item to the full Board; the amendment limits authority and reporting requirements through Dec. 2017 while DPH says managed-care contracting could generate substantial revenue.
The Budget & Finance Committee voted to accept the budget analyst's recommendations and forward an amended ordinance that would authorize the San Francisco Department of Public Health (DPH) to enter into managed-care contracts meeting minimum financial standards, with limits and reporting requirements set to expire Dec. 31, 2017.
Greg Wagner, chief financial officer for DPH, told the committee that, under the Affordable Care Act, more San Franciscans are gaining insurance and the department needs the contractual authority to continue providing services to patients who enroll in managed-care plans. "Under the new structures of the Affordable Care Act, in order to, fully engage and be a a provider under the new system, it means that we have to enter into contracts, with plans," Wagner said, adding that the authority would allow DPH to negotiate rates at or above current managed Medi-Cal rates to preserve revenue and patient access.
The budget analyst (Mr. Rose) recommended amending the proposed ordinance to limit the director's contracting authority through Dec. 31, 2017, and estimated the department could receive substantial new revenues under several potential contracts. Deputy City Attorney John Givner said the ordinance text and reporting requirements could be tweaked to implement the time limit (for example, removing the three-year contract prohibition and making existing reporting obligations time-limited through December 2017).
The committee approved the oral amendment, accepted the analyst's recommendations and forwarded the item to the full Board by motion without objection. The committee record indicates DPH estimates potential revenue but did not finalize contract terms at the meeting; the transcript refers to an estimate of up to $30,000,000 per year under multiple potential contracts but the committee limited the authority and asked for implementation details to be finalized in ordinance language and supporting documents before the Board vote.
