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NASBHC: 2011 Financial Survey of State Funding and “Out of the Box “ Financial Strategies for SBHCs Laura Brey NCSCHA Conference, December 3, 2012 Our Vision All children and adolescents are healthy and achieving at their fullest potential. Our Mission To improve the health status of children and youth by advancing and advocating for school-based health care Adopted by Board of Directors, January 2009 NASBHC Membership Individual $75 ($25 student) • • • • • • • Organizational $500 A national voice advocating for SBHCs at • the Federal level Quarterly newsletter • Events calendar • Online renewal Free access to NASBHC publications • Access to members-only space on • NASBHC.org – Searchable member directory – Archived issues of the newsletter – Special member updates – Archived NASBHC Web conferences Free access to NASBHC toolkits All of the benefits of an individual membership, AND Two individual memberships Access to job board with ability to post positions 50 customizable postcards promoting the SBHC model E-mail updates and action alerts for the entire staff (requires submission of a staff e-mail roster) 3 Objectives • Review results of nationwide survey of states’ financial support of school-based health centers • Discuss innovative ideas of financial support/strategies for school-based health services Total SBHCs in US, 1990-2008 2000 1800 1600 1400 Map: Distribution of SBHCs, 2008 1200 1000 800 600 400 200 0 1990 1992 1994 1996 1998 2001 2004 2008 Why State Funds Matter Nearly one in two school-based health centers rely on state-directed public funds to help sustain their services. Data Sets • Department of Public Health State Policy Survey – Target: State public health agencies (inc. DC, PR) – Objective: assess types and amount of state SBHC funding, technical support and data collection. – Response = 52 agencies (inc. DC, PR) • Medicaid State Policy Survey – Target: State Medicaid agencies (inc. DC, PR) – Objective: assess state Medicaid SBHC policies – Reponse Rate = 41 agencies (inc. DC) Department of Public Health State Policy Survey States that Fund SBHCs, 2011 DC State-directed funds for SBHCs (18) FL’s SBHC earmark is specific to a legislative district and is not a statewide program. It is not included in the analysis. 18 States Fund SBHCs • • • • 17 collect data from SBHCs 15 convene a statewide network 14 staff a state program office 14 set and monitor SBHC standards Summary of State-Directed Funds FY2011 State Investment # SBHCs funded Grant size/ SBHC Total $89.6M 875 -- Average $5M 49 $102,000 High $21.7M 223 $660,000 Low $271,000 3 $20,000 n = 18 states Total State-Directed Funds by Source Total for FY2011: $89.6M $14.8M $5.6M $9.3M State General Revenue $59.9M Tobacco Settlement Title V MCH Block Grant Other n = 18 states State-Directed Funding for SBHCs By State, FY 2011 State AR CO CT DC DE IL IN LA MA MD ME MI NC NM NY OR TX WV Total SBHCs Funded Total State General Fund Tobacco Settlement Title V MCH Block Grant Other 11 41 81 4 28 39 3 62 36 68 20 72 21 $ 2,000,000 $ 1,205,118 $ 10,728,342 $ 2,675,000 $ 5,200,000 $ 4,244,600 $ 271,000 $ 7,606,790 $ 2,868,998 $ 2,700,000 $ 719,500 $ 16,557,000 $ 1,429,812 $ 2,000,000 $ 947,177 $ 10,440,246 $ 5,200,000 $ 159,800 $ 2,586,308 $ 2,868,998 $ 2,700,000 $ 219,745 $ 3,557,000 $ 1,429,812 Unknown $ 2,000,000 $ 1,958,500 $ 4,792,277 $ 499,555 - $ 226,122 $ 288,096 $ 675,000 $ 1,339,100 $ 271,000 $ 228,204 $ 200 - $ 31,819 $ 787,200 $13,000,000 - 56 223 54 6 50 875 $ 5,175,000 $ 21,765,126 $ 2,973,497 $ 462,500 $ 1,027,100 $ 89,609,383 $ 5,067,000 $19,699,140 $ 2,033,497 $ 1,027,100 $ 59,935,823 $ 9,250,332 $ 80,000 $ 2,065,986 $ 462,500 $ 5,636,208 $ 28,000 $ 940,000 $ 14,787,019 Percent of All Public Schools with State-Directed $ for SBHCs 12% 10% 8% 6% 4% 2% 0% DE CT NM WV NY MD OR LA ME Note: Total number of school is from 2008-09; SBHC count is from FY2011. Data source: National Center for Education Statistics: http://nces.ed.gov/programs/digest/d10/tables/dt10_102.asp CO MA MI DC AR IL NC IN TX FL Total State-Directed Funding, 1996-2011 90 80 70 Millions 60 50 40 30 20 10 0 FY1996 FY1998 FY2000 Title V MCH Block Grant FY2002 FY2005 State General Revenue FY2008 Tobacco Data sources: Center for Health and Health Care and Schools (1996-2002); NASBHC (2005-2011) FY2011 Other Number of State Programs Declines; Total State-Directed Funds Increase 90 80 70 60 Total State Dedicated Funds ($Ms) Total # State SBHC Programs 50 40 30 20 10 0 FY1996 FY1998 FY2000 FY2005 Data sources: Center for Health and Health Care and Schools (1996-2002); NASBHC (2005-2011) FY2008 FY20011 % of SBHCs Funded by State-Directed $ 1996-2011 2500 ?* 2000 Other State-funded 1500 1000 500 54% 56% 51% 45% 45% FY1996 FY1998 FY2000 FY2005 FY2008 0 * NASBHC’s national census of SBHCs for FY2011 is still underway. Data sources: Center for Health and Health Care and Schools (1996-2002); NASBHC (2005-2011) FY20011 State-Directed SBHC % Change,150%2000-2011 0% 50% Funds, 100% 200% -50% Colorado Maine New York Oregon Connecticut Louisiana Off the Charts New Mexico 1,194% Michigan 472% West Virginia Illinois Delaware North Carolina Massachusetts Maryland -50% 0% 50% 100% Data sources: Center for Health and Health Care and Schools (1996-2002); NASBHC (2005-2011) 150% 200% States’ Accountability for SBHC Funds • 14 of 18 States set SBHC operating standards as condition of grant funds – States monitor adherence to SBHC standards through combination of paper review and/or in-person site visit • All 18 States track SBHC performance indicators • All 18 States collect a range of program data • 7 of 18 States monitor Medicaid billing practices SBHC Performance Indicators Most Frequently Tracked by States Top 5 of 28 choices BMI Assessment Immunization Status Weight Assessment & Counseling Mental Health Annual Risk Assessment 0 3 6 9 Number of States States that fund SBHCs (n=17) 12 15 Most Common SBHC Data Collected by States Client/Visit Quality Improvement Staffing Finance Risk Assessment Policies Special Projects/Initiatives Physical Space 0 3 6 9 Number of States States that fund SBHCs (n=18) 12 15 18 How States Value SBHC Contributions to Public Health Mission Access to Care Immunizations Obesity Prevention Preventive Care Mental Health Tobacco Prevention 0 3 6 9 States States that fund SBHCs (n=18) 12 15 Top Challenges to SBHCs: State Agency Perspective Concerns re: parental authority Providing adolescents with family planning services Lack of clarity of SBHC role re: medical home Demonstrating SBHCs do not duplicate services Demonstrating value/efficacy to education sector Maximizing patient revenue streams Ensuring continued public sector funding Demonstrating value/ efficacy to payers Creating sustainable financial model for SBHCs 0 States that fund SBHCs (n=18) 2 4 6 8 10 12 14 State Medicaid Policies and SBHCs State Medicaid Policies Managed Care Organizations Required to Reimburse SBHCs Require Billing Uninsured (sliding scale) Define SBHCs as Provider Type Waive Preauthorization for SBHCs Waive Preauthorization for Specific SBHC Services Delaware Illinois Connecticut Maryland Illinois Illinois Louisiana Delaware Michigan Maryland Louisiana North Carolina Maine New Mexico New York Maine West Virginia Maryland New Mexico North Carolina West Virginia NOTE: New York SBHCs are carved out from New York’s Medicaid policies. West Virginia Conditions Required to Bill Medicaid Licensure of SBHC CO CT DC IL LA MD NC NM NY Certification Maintain Comms w/PCP Licensure of Sponsor Agency MCO Credentialing Of the 19 states that fund SBHCs, 13 responded WV State Medicaid’s View of SBHC Role AR CO CT IL LA MD ME NC NM NY OR WV Prevention Reproductive EPSDT Provider Outreach/Enrollment Acute Care Primary Care Of the 19 states that fund SBHCs, 12 responded Summary • Number of states with investments has stabilized over decade • 15 states with decade-old program – Only AR, DC, IN and TX joined ranks in last 10 years • Funding remains stable – in spite of state revenue woes • More work to be done in Medicaid/CHIP to assure payment, role for SBHCs as medical home • Future: aligning SBHC strengths with health care reform goals “Out of the Box” Finance Strategies Community Benefit Plans Affordable Care Act requires tax-exempt hospitals and health care organizations to conduct periodic community health needs assessments every three years and adopt plans to meet assessed needs . • Include input from persons representative of broad community interests including those with special knowledge or public health expertise. • Adopt implementation strategies to meet the community health needs identified through the assessment. • Report annually how it is addressing the needs identified in the community health needs assessment and IRS reporting • Describe needs not being addressed including reasons why such needs are not being addressed. Many states require tax-exempt hospitals to conduct community needs assessments and develop community benefit plans, in varying degrees of specifications. Community Benefit • Assists with maintaining tax exempt status • Value of what a tax exempt health care organization is giving back to the community compared to revenue it is collecting • Includes programs or activities that provide treatment and/or promote health and healing as a response to identified community needs • And meets at least one of the following criteria – Improves access to health care services – Enhances health of the community – Advances medical or health knowledge – Relieves or reduces the burden of government or other community efforts Community Benefit • Programs or activities that provide treatment and/or promote health and healing as a response to identified community needs • And meets at least one of the following criteria – Improves access to health care services – Enhances health of the community – Advances medical or health knowledge – Relieves or reduces the burden of government or other community efforts • Marketing must not be the primary purpose Hospital OPD Facility Fees /Charges • Fact: Out Patient Departments (OPDs) of hospitals are reimbursed 80% more for a 15 minute Evaluation and Management Visit than a private physician’s practice • Reason: Hospital OPDs are allowed to add facility fees or charges to the rate billed for each visit. This policy is meant to cover the increased costs of delivering these services in a hospital related setting. • Result:: Hospitals are purchasing physician practices and converting them to hospital OPDs without changing their location or patient mix. • Question: Can hospital sponsored SBHCs add facility charges to their Medicaid bills? Yes, for now • CMS 2012 Recommendation: Realign allowed payment rates over a three year period: lowering OPD rates and increasing free standing physician practice rates Federal Qualified Health Center (FQHC) Program Fundamentals • Located in or serve a high need community • Governed by a community board • Provide comprehensive primary care services and supportive services (education, translation, transportation) that promote health care access • Provide services available to all based on ability to pay • Meet performance and accountability requirements (administrative, clinical, and financial operations0 Federal Qualified Health Center (FQHC) Types of Health Centers • Grant-supported FQHCs – public and private non-profit health care organizations which meet health center definition and receive funding under Section 330 of the PHS Act • Non-grant supported health centers identified by HRSA and certified by CMS as meeting the health center definition under 330 of PHS Act, referred to as “look-alikes” • Outpatient health programs/ facilities operated by tribal organizations (Indian Self-Determination Act) or urban Indian organization (under the Indian Health Care Improvement Act) Federal Qualified Health Center (FQHC) 330 grant supported Benefits • New starts can request up to $650,000 • Access to medical malpractice coverage under Federal Tort Claims Act (FTCA) • Prospective Payment System (PPS) or other state-approved Alternative Payment Methodology (APM) for services to Medicaid patients • Cost-based reimbursement for services to Medicare patients • Drug Pricing Discounts for pharmaceutical products under the 340B Program • Access to on-site eligibility workers to provide Medicaid and CHIP enrollment services • Access to Vaccines for Children Program for uninsured children • Access to National Health Service Corps (NHSC) medical, dental, and mental health providers • Eligible for other federal grants and programs Federal Qualified Health Center (FQHC) Non-330 grant funded Benefits • Reimbursement under the Prospective Payment System (PPS) or other state- approved Alternative Payment Methodology (APM) for Medicaid services • Cost-based reimbursement for services to Medicare patients • Drug Pricing Discounts for pharmaceutical products under the 340B Program • Access to on-site eligibility workers to provide Medicaid and CHIP enrollment services • Health Professional Shortage Area (HPSA ) designation and eligible to apply to receive National Health Service Corps (NHSC) medical, dental, and mental health providers placements