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HomeMy WebLinkAbout2024-062RESOLUTION NO. 2024- 0 6 2 AN ASSESSMENT RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING AND ADOPTING A NON -AD VALOREM SPECIAL ASSESSMENT WITHIN THE COUNTY LIMITS FOR THE PURPOSE OF BENEFITING ASSESSED PROPERTIES THROUGH ENHANCED MEDICAID PAYMENTS FOR LOCAL SERVICES; FINDING AND DETERMINING THAT CERTAIN REAL PROPERTY IS SPECIALLY BENEFITED BY THE ASSESSMENT; COLLECTING THE ASSESSMENT AGAINST THE REAL PROPERTY; ESTABLISHING A PUBLIC HEARING TO CONSIDER IMPOSITION OF THE PROPOSED ASSESSMENT AND THE METHOD OF ITS COLLECTION; AUTHORIZING AND DIRECTING THE PUBLICATION OF NOTICES IN CONNECTION THEREWITH; PROVIDING FOR CERTAIN OTHER AUTHORIZATIONS AND DELEGATIONS OF AUTHORITY AS NECESSARY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, hospitals in Indian River County's jurisdiction (the "Hospitals") annually provide millions of dollars of uncompensated care to uninsured persons and those who qualify for Medicaid because Medicaid, on average, covers only 60% of the costs of the health care services actually provided by Hospitals to Medicaid -eligible persons, leaving Hospitals with significant uncompensated costs; and WHEREAS, the State of Florida (the "State") received federal authority to establish the Statewide Medicaid Managed Care Hospital directed payment program (the "DPP") to offset hospitals' uncompensated Medicaid costs and improve quality of care provided to Florida's Medicaid population; and WHEREAS, Hospitals have asked Indian River County (the "County") to impose a non - ad valorem special assessment upon certain real property interests held by the Hospitals to help finance the non-federal share of the State's Medicaid program; and WHEREAS, the only real property interests that will be subject to the non -ad valorem assessments authorized herein are those belonging to the Hospitals; and WHEREAS, the County recognizes that one or more of the Hospitals within the County's boundaries may be located upon real property leased from governmental entities and that such Hospitals may be assessed because courts do not make distinctions on the application of special assessments based on "property interests" but rather on the distinction of the classifications of real property being assessed; and WHEREAS, the funding raised by the County assessment will, through intergovernmental transfers ("IGTs") provided consistent with federal guidelines, support additional funding for Medicaid payments to Hospitals; and US Active\118603232\V-1 RESOLUTION NO. 2024- 062 WHEREAS, the County acknowledges that the Hospital properties assessed will benefit directly and especially from the assessment as a result of the above-described additional funding provided to said Hospitals; and WHEREAS, the County has determined that a logical relationship exists between the services provided by the Hospitals, which will be supported by the assessment, and the special and particular benefit to the real property of the Hospitals; and WHEREAS, the County has an interest in promoting access to health care for its low- income and uninsured residents; and WHEREAS, leveraging additional federal support through the above-described IGTs to fund Medicaid payments to the Hospitals for health care services directly and specifically benefits the Hospitals' property interests and supports their continued ability to provide those services; and WHEREAS, imposing an assessment limited to Hospital properties to help fund the provision of these services and the achievement of certain quality standards by the Hospitals to residents of the County is a valid public purpose that benefits the health, safety, and welfare of the citizens of the County; and WHEREAS, the assessment ensures the financial stability and viability of the Hospitals providing such services; and WHEREAS, the Hospitals are important contributors to the County's economy, and the financial benefit to these Hospitals directly and specifically supports their mission, as well as their ability to grow, expand, and maintain their facilities in concert with the population growth in the jurisdiction of the County; and WHEREAS, the Board finds the assessment will enhance the Hospitals' ability to grow, expand, maintain, improve, and increase the value of their Indian River County properties and facilities under all present circumstances and those of the foreseeable future; and WHEREAS, the County is proposing a properly apportioned assessment by which all Hospitals will be assessed at a uniform rate that is compliant with 42 C.F.R. § 433.68(d); and WHEREAS, on September 14, 2021, the Board of County Commissioners adopted Ordinance No. 2021-012, enabling the County to levy a uniform non -ad valorem special assessment, which is fairly and reasonably apportioned among the Hospitals' property interests within the County's jurisdictional limits, to establish and maintain a system of funding for IGTs to support the non-federal share of Medicaid payments, thus directly and specially benefitting Hospital properties. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA: Section 1. Definitions. As used in this Resolution, the following capitalized terms, not 2 US Active\118603232\V-1 RESOLUTION NO. 2024- 062 otherwise defined herein or in the Ordinance, shall have the meanings below, unless the context otherwise requires. Assessed Property means the real property in the County to which an Institutional Health Care Provider holds a right of possession and right of use through an ownership or leasehold interest, thus making the property subject to the Assessment. Assessment means a non -ad valorem special assessment imposed by the County on Assessed Property to fund the non-federal share of Medicaid and Medicaid managed care payments that will benefit hospitals providing Local Services in the County. Assessment Coordinator means the person appointed to administer the Assessment imposed pursuant to this Article, or such person's designee. Board means the Board of County Commissioners of Indian River County, Florida. Comptroller means the Indian River County Comptroller, ex officio Clerk to the Board, or other such person as may be duly authorized to act on such person's behalf. County means Indian River County, Florida. Fiscal Year means the period commencing on October 1 of each year and continuing through the next succeeding September 30, or such other period as may be prescribed by law as the fiscal year for the County. Institutional Health Care Provider means a private for-profit or not-for-profit hospital that provides inpatient hospital services. Local Services means the provision of health care services to Medicaid, indigent, and uninsured members of the Indian River County community. Non Ad Valorem Assessment Roll means the special assessment roll prepared by the County. Ordinance means the Indian River County Local Provider Participation Fund Ordinance codified in Title Il, Chapter 215 of the Indian River County Code of Ordinances. Tax Collector means the Indian River County Tax Collector. Section 2. Authority. Pursuant to Article VIII, Section 1(f) of the Constitution of the State of Florida, Chapter 125 of the Florida Statutes, and the Indian River County Local Provider Participation Fund Ordinance, the Board is hereby authorized to impose a special assessment against private for-profit and not-for-profit hospitals located within the County to fund the non- federal share of Medicaid payments associated with Local Services. Section 3. Special Assessment. The non -ad valorem special assessment discussed herein shall be imposed, levied, collected, and enforced against Assessed Properties located within 3 US Active\118603232\V-1 RESOLUTION NO.2024- 062 the County. Proceeds from the Assessment shall be used to benefit Assessed Properties through a directed payment program that will benefit the Assessed Properties for Local Services. When imposed, the Assessment shall constitute a lien upon the Assessed Properties owned by Hospitals and/or a lien upon improvements on the Property made by Hospital leaseholders equal in rank and dignity with the liens of all state, county, district, or municipal taxes and other non -ad valorem assessments. Payments made by Assessed Properties may not be passed along to patients of the Assessed Property as a surcharge or as any other form of additional patient charge. Failure to pay may cause foreclosure proceedings, which could result in loss of title, to commence. Section 4. Assessment Scope, Basis, and Use. Funds generated from the Assessment shall be used only to: Provide to the Florida Agency for Health Care Administration the non-federal share of Medicaid managed care hospital directed payments to be made directly or indirectly in support of hospitals serving Medicaid beneficiaries; and 2. Reimburse the County for administrative costs associated with the implementation of the Assessment authorized by the Ordinance. If, at the end of the Fiscal Year, additional amounts remain in the local provider participation fund, the Board is hereby authorized either (a) to retain such amounts in the fund to transfer to the Agency in the next fiscal year for use as the non-federal share of Medicaid hospital payments, or (b) if requested to do so by the Assessed Properties, to refund to Assessed Properties, in proportion to amounts paid in during the Fiscal Year, all or a portion of the unutilized local provider participation fund. If, after the Assessment funds are transferred to the Agency, the Agency returns some or all of the transferred funding to the County (including, but not limited to, a return of the non-federal share after a disallowance of matching federal funds), the Board is hereby authorized to. refund to Assessed Properties, in proportion to amounts paid in during the Fiscal Year, the amount of such returned funds. Section 5. Computation of Assessment. The Assessment shall equal 0.56% of net patient revenue for each Assessed Property specified in the attached Non -Ad Valorem Assessment Roll. The amount of the Assessment required of each Assessed Property may not exceed an amount that, when added to the amount of other hospital assessments levied by the state or local government, exceeds the maximum percent of the aggregate net patient revenue of all Assessed Hospitals in the state permitted by 42 C.F.R. § 433.68(f)(3)(i)(A). Assessments for each Assessed Property will be derived from data contained in cost reports and/or in the Florida Hospital Uniform Reporting System, as available from the Florida Agency for Health Care Administration. Section 6. Timing and Method of Collection. The amount of the assessment is to be collected pursuant to the Alternative Method outlined in §197.3631, Fla Stat. The County shall provide Assessment bills by first class mail to the owner of each affected Hospital. The bill or accompanying explanatory material shall include: (1) a reference to this 4 US Active\118603232\V-1 RESOLUTION NO. 2024- 0 6 2 Resolution, (2) the total amount of the hospital's Assessment for the appropriate period, (3) the location at which payment will be accepted, (4) the date on which the Assessment is due, and (5) a statement that the Assessment constitutes a lien against assessed property and/or improvements equal in rank and dignity with the liens of all state, county, district or municipal taxes and other non -ad valorem assessments. No act of error or omission on the part of the Comptroller, Property Appraiser, Tax Collector, Assessment Coordinator, Board, or their deputies or employees shall operate to release or discharge any obligation for payment of the Assessment imposed by the Board under the Ordinance and this resolution. Section 7. Public Hearing. Per the notice provided on September 3, 2024, the Board has heard and considered objections of all interested persons prior to rendering a decision on the Assessment and attached Non -Ad Valorem Assessment Roll. Section 8. Responsibility for Enforcement. The County and its agent, if any, shall maintain the duty to enforce the prompt collection of the Assessment by the means provided herein. The duties related to collection of assessments may be enforced at the suit of any holder of obligations in a court of competent jurisdiction by mandamus or other appropriate proceedings or actions. Section 9. Severability. If any clause, section, or provision of this resolution is declared unconstitutional or invalid for any reason or cause, the remaining portion hereof shall be in full force and effect and shall be valid as if such invalid portion thereof had not been incorporated herein. Section 10. Effective Date. This Resolution to be effective immediately upon adoption. This Resolution duly adopted this 24th day of September, 2024. This Resolution duly adopted this 24th day of September, 2024. The foregoing resolution was moved for adoption by Commissioner Derl ` Loar seconded by Commissioner Jo s e ph E . F 1 e s ch e r , and adopted by the following vote: Chairman Susan Adams AYE Vice -Chairman Joseph E. Flescher AYE Commissioner Joseph Earman AYE Commissioner Deryl Loar AYE Commissioner Laura Moss AYE US Active\118603232\V-1 RESOLUTION NO. 2024- 0 6 2 The Chairman thereupon declared the resolution duly passed and adopted this 24th day of September, 2024. BOARD OF COUNTY INDIA LVER COUl LM Adams, Chairman ATTEST: Ryan L. Butler, Clerk Of Court and Comptroller By:/11 A.11. /-/ � . puty Clerk Approved as to form and legal sufficiency: By: Susan J. Prado Deputy County Attorney 6 US Active\118603232\V-1 .._. _ I td00 N7 8 I OrRenwnen fedRtY Noapkal Addma ParcalB Mb 5yI0Ig IpI3 9Y20iS Mandatary Invda Contact Irnoke 4ddna EmaB Ihaa NumWr �Mzt.patbn' NH PMWM Awwm9nt Cut~ Aawaxn9M NYnutM z IC/) D a z RByenua of Na IP Not ft*wt of Nat OP cn ►.� N CD 4- I — ON ON N1D00 36U St, Vera 9.56% 32393ti0o000300DQD(O0.p 0.56%NaB $161,933,009 5 906.825 5217.212, 381 ASTM S1.216,SS7 S2,123,392 100036th St. Vero 10100/00 Oleaelyd Clinic lkalth tem ClevcleM ClMk Medkal [enttr IrWMn Rher Ho sal Bewh.FL32960 P h%nmol Beach, FL 32960 NNNt CI'.cd.m 160037th Sc, Vero 0.56%NpB 32,482,109 181,900 - 5181,900 Amhew Nnibum and 90011 I6erty Pnhwry, andrew.wllburn@enrnmpaschealth_<nm; OD 12039300 F­ps,Health F m Flealth BehablEUtlon Uld Treuure Coast Beech Fl32960 3Z39Z600000]OOOOIXl01.9 2atk5h 8rm�ln-ham. AL 35242 katie.shu @enmmpasshealth.com 205970-5761 O 13695 US1' .569LNM 49.772,622 278.727 70.771.153 3%,318 $675,095 Brkn lbdi: Nigel 1900 N. Pearl St., Suite BMn.Badl@stewaM.org; O 12001900 S[eawrd Heshh Gra System Sebastkn Nver Medial Cents W Sebnikn FL 32958 30382500000002000006.1 Bowman 2400, Dallan, Tenn Amenda.Davlds0n@stewxd.org; (4071443-75414 N 75201 NIBei.Bowman@9teward.om W N GjC9untY Phone Number: (772;226-1408 ;BCC Address: Indian Rwer County Ad.W.tetkn Bu1WIM A 180127th II, Vera Beach. FL 32960 Od-- Date: September 14, 2021 Zluva pate: September 10, 2024 lDhablllty Cama: ea lbility@Ircgw.to or(773)2261391 j Mandatory Payments Due Dare: Upon receipt d Imv4w a � o � c z a z N o CD cn ►.� N CD 4- I ON ON N C (n 0 C 00 Number OWNER NAME FACILITY DESCRIPTION FACILI ADDRE55 PARCEL i/ LEGAL DESCRIFMON 1 Indian River County Hospital District C/O Clevcland Clinic Medical Center/ 1000 36th St., 32393600000300D0D001.0 SEC 36 TWP 32 S RNG 39 E -3E NG MORE PAR" DESC AS Cleveland Clinic Indian River Hospital Vero Beach, FL FOLL: THE NE QUARTER OF THE NW QUARTER LESS THE W 32960 529 FT THEREOF AND ALSO LESS THE E 275 FT OF THE S 800 FT THEREOF AND ALSO LESS THE S 310 FT THEREOF AND ALSO LESS THE S 260 FT OF THE W 934 FT OF THE NW QUARTER OF TI IC NW QUARTER AND LESS TI IC N 75 FT FOR ROW AI SO I FSS ROW AS RFCORnFn IN OR .33.Wl 605 2 Ocean Health Associates Ltd Encompass Health Rehabilitation 1000 37th St., 32392600000700000001.4 5 715 FT OF SE1/4 OF SE1/4 LESS E G90 FT& LESS W 27.50 Hospital of I reasure Ccast Vero Beach, FL F I AS IN L*(9K /03 PP 14 43 & LESS S 55 F 1 FOR RU RIW 32960 r A PARCEL Or LAND COMPRISING OF GOV GOTS 2 AND4 SEC 25 TWN 30 RNG 38 MORE PART DESC A5: `HAT PORTION OF PROPERTY '_YING NW LY OF 83RD AVE (AKA BAY5T)AND W OF JS HWY NO 1. BEG ATTHE SW COR OF GOV LOT 2 SEC 25 TWIN 30 RNG 39 SAID POINT BEING THE POB RUN 5 DO DEG OD MIN 30 SEC W, 89.54 FT; TH RUN N 35 DEG 10 MIN 46 SEC E, 742.74 FT, TH RUN N 04 DEG 15 MIN 45 SCC C,49.46 FT TO A POINT ON TI IC W ROW OF US HWY NO 1; TH RI IN ON SAID W ROW S 15 OF5 .30 MIN 47 SEC E, 578.17 FT; TH CONT ON THE W ROW, 285.78 FT ON THE ARC OF A 11,459.20 FT RAD CUR CONCAVE TO THE NE, 1:.1(1445 (LS THROUGH A CEN ANG OF 01 DEG 25 MIN 44 SEC TO A Mpt of Sebastian -Steward LLC Q/0 Mpt I lighway 1, POINT ON THE CIL OFA 7D FT ROW KNOWN AS BAY ST; TH 3 Operating Partnership LP Sebastian River Medical Center Sebastian, FL 303825OCCC,00020DOOOG.1 CONT ON THE W ROW, 91.20 FF ON THE ARC OF AN 32958 11,459.20 FT RAD, CURVE CONCAVE TO THE NE, THROUGH A(1NI KA;; AN(, (J- '=k -[i 71 MIN 775F( IH HUN 446 DEC 28 MIN 35 SEC W 302.40 Fr; TI I RUN S 01 DCG D9 MIN 25 SEC E,620.86 FT TO AN INTERSECTION W17H FLEMING GRANT LINE; TH RUN ON FLEMING GRANT LINE, N 44 DEG 04 MIN 20 SEC W 1921.27 FT FOA POINT ON THE S BNDRY OF GOVT LOT 1, SEC 25, TWN 30 RNG 38; TH RJN N 89 DEG 58 MIN 51 SEC E, 846.14 FT ALONG THE 5 BNDRY OF GOV LOT 1 A DIS OF 846.14 FT TO THE POB. LESS ROW OR BK 430 PG 732, TI IAT ROW RECORDED IN OR BK 813 PG 1438 ANn SURIF(-_TTO A CONSFRVATION FASFMFNT AS DFSC.IN OP. BK 2354 PG 630 r st Cn r 0.4 C) z z 0 N O N O 01 N