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    2.    
City Council Regular
Meeting Date: 06/04/2019  
Subject:    Mercy Hospital Presentation/Approve Memorandum of Understanding Between the City of Coon Rapids and Allina Health System
Submitted For: Matt Stemwedel From: Melissa Moore, Administrative Assistant I

INTRODUCTION
Council is asked to approve a Memorandum of Understanding with Mercy Hospital.  This Memorandum of Understanding outlines Mercy Hospital's dedication to serving indigent, uninsured and underinsured patients in our community. Representatives from Mercy Hospital will be in attendance to provide a brief overview of this program.
DISCUSSION
The 340B Program is a drug pricing program that requires drug manufacturers to provide outpatient drugs at reduced prices and is administered by the Health Resources and Service Administration (HRSA).  The 340B program savings enable hospitals to stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.  Mercy Hospital qualified for the 340B program based on serving a disproportionate share low-income patients. According the Mercy Hospitals 2018 Medicare Cost Report, low-income patients comprised of 11.75% of their total patient population.  A hospital qualifies for the 340B programs if low-income patients represent more than 11.75% of the total patient population.
 
The 340B program is used to support Allina’s program that offers free care for patients who are not eligible for Medicare or Medicaid and earn at or below 275% of the Federal Poverty Level.  Another use is the health care service discounts available for patients with less than $125,000 annual household income or those with health insurance but that are receiving an uncovered service or item.  The 340B discount pricing is provided to covered outpatient drugs, which is only a portion of the hospital’s drug use. Inpatient drugs are not included in the 340B Program.
 
The Memorandum of Understanding is Mercy’s commitment to the City of Coon Rapids and surrounding communities to continue providing such services to all who entrust the hospital with their care.  The City Council last approved this MOU in March, 2016.
RECOMMENDATION
Approve Memorandum of Understanding with Mercy Hospital.

Attachments
Mercy Hospital MOU

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