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Board hears hospital litigation escrow and actuarial recommendation; approves actuarial invoice
Summary
County finance staff reported an escrow account related to hospital litigation that actuarial analysis recommends holding $2,086,000; the account currently holds about $2,814,000. The board approved paying an actuarial invoice for $2,400 and discussed options for managing the apparent surplus.
County account staff reported on a tort-claims escrow tied to hospital litigation. An actuarial review recommended the county carry $2,086,000 as a reserve in that account; staff said the account balance is about $2,814,000.
"They're saying that we need to have $2,086,000 in that account. We currently have $2,814,000 in there," the account administrator told the board, noting a recommended approach but leaving the surplus decision to the board.
The board voted to pay an actuarial invoice for $2,400 for the work and discussed guidance from counsel and actuarial advisers about the confidence level and timing for any withdrawal. One supervisor urged caution, noting statutory timing and the possibility of future claims.
Why it matters: The escrow holds funds related to prior hospital-related litigation and settlements; decisions about whether to draw down excess funds affect county reserves and potentially hospital proceeds funds. Staff said some of the accounts were established to keep physician-related funds separate and that further legal review is ongoing.
Board action and follow-up: The board approved payment of the actuarial invoice by motion. Staff will continue to consult counsel and actuarial advisers before recommending any transfer from the escrow account and will report back to the board.
