Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Operating Line of Credit for San Mateo Medical Center
RECOMMENDATION:
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Adopt a resolution to authorize:
A) Establishing a maximum limit for cash advances from the County General Fund to San Mateo Medical Center (SMMC) of $80,000,000 to support SMMC operations; and
B) Maintaining current cash advance limit of $45,000,000 interest free; and
C) Provide that SMMC pay interest at the County established pool rate on additional funds needed above $45,000,000, up to the established maximum of $80,000,000.
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BACKGROUND:
General Fund cash advances to San Mateo Medical Center (SMMC) are authorized by Board resolutions. These advances represent an operating line of credit, which is used by SMMC during the fiscal year to pay for expenses while awaiting reimbursement from the state and federal government. On October 17, 2006, this Board approved a resolution 068335, to reduce SMMC's line of credit from $60 million to $30 million as of July 1, 2006, because cash advances of more than $30 million had not been necessary. On October 8, 2019, your Board approved resolution 076970, to increase SMMC's line of credit from $30 million to $45 million as of October 8, 2019.
DISCUSSION:
SMMC is an Enterprise Fund of the County. Seventy-nine percent of SMMC's operations are funded through federal and state government's payments for patient services. While government fee for service and supplemental funding opportunities to public hospitals have grown over the years, allowing SMMC to maintain an overall strong fiscal position, these sources do not pay SMMC on a timely basis.
To bridge daily cash flow needs, SMMC relies on cash advances from the County General Fund (General Fund). The California Association of Public Hosp...
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