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HomeMy WebLinkAbout8.a. Fairview CARES Act Allocations EXECUTIVE SUMMARY City Council Regular Meeting: October 20, 2020 AGENDA ITEM: Allocation of CARES Act Funds to AGENDA SECTION: Fairview Hospital Unfinished Business PREPARED BY: Logan Martin, City Administrator AGENDA NO. 8.a. ATTACHMENTS: Fairview Hospitals request, Resolution APPROVED BY: LJM 2020 - 117 RECOMMENDED ACTION: Motion authorizing allocation of a subsequent allotment of CARES Act funds to Fairview Hospital, as presented. BACKGROUND City staff has continued to pursue full allocation of our $1,833,933 in CARES Act funds. Monthly reports have been submitted to the Department of Management and Budget, and all funds must be expended by November 15, 2020. At the August 4 meeting the City Council allocated $500,000 to create the Rosemount CARES business grant program. An additional $200,000 was allocated toward that program at the September 15 meeting, however staff does not anticipate distributing the full amount based on received applications. City costs through August in combating COVID (PPE, teleworking, sick leave, etc.) have also been allocated by the Council, totaling $60,646.83. Additional allocations within this category will be forthcoming in November. Lastly, a $50,000 grant to 360 Communities has been approved in support of their operational costs in response to COVID. This means that approximately $1.023M is yet to be allocated, with more expected to be unused within the business grant program. The City will have sufficient public safety salary costs to retain all of those funds. Currently, staff is requesting the Council authorize allocation of the following expenses. Funding Categories Allocation of Funds Fairview Hospitals grant $53,348 Fairview Hospitals CARES Act funding allows for the utilization of funds for expenses in health care and human services directly related to the COVID-19 pandemic. As such, Fairview Ridges hospital has submitted requests to multiple cities within Dakota County. Submitted documentation to the City of Rosemount is attached and discussed below. A grant of $53,348 is requested, which reflects Rosemount’s proportion of impatient admissions to Ridges (6.12%) of their overall COVID-19 costs from March through June ($871,994). Staff requested additional information about Rosemount’s utilization of Fairview Ridges and the Rosemount Fairview clinic, which is detailed below.  33% of Rosemount residents admitted to a hospital in 2019 went to Ridges  An additional 25% of Rosemount residents needing hospitalization were admitted to a sister Fairview Hospital  4,278 Rosemount residents visited the Ridges Emergency Department in 2019  Rosemount Fairview clinic boasted 16,073 in 2019 (specific City data not available) st The specific utilization of the grant is detailed in the July 31 letter from Fairview, including Supply and Equipment costs, Infrastructure Costs, and Training / Educational costs. Numerous other cities in Dakota County received similar requests from Fairview, and a few grants have been approved by other cities. A full report on the actions of other cities will be presented during the meeting. Based upon currently available guidance on utilization of the CARES Act, the allocation discussed above is an allowable use of the City’s funds. Staff acknowledges the important role that the local Rosemount Fairview Clinic plays in the City’s health care offerings, and the strength of Fairview’s system is linked to the success of the local clinic. Additional allocations will be forthcoming on future Council agendas, as all of the funds received must be allocated by the City by November 15, 2020. RECOMMENDATION Staff recommends the City Council authorize a resolution providing for the allocation of CARES Act funds to Fairview Hospital, as presented above. Ridges Hospital 201 E. Nicollet Boulevard Burnsville, MN 55337 July 31, 2020 Mayor Bill Droste City of Rosemount 2875 145th Street West Rosemount, MN 55068-4997 Dear Mayor Droste: Thank you once again for your consideration of Ridges Hospital’s Coronavirus Relief Fund request toward alleviating the financial impact of the COVID-19 pandemic. As we discussed, the urgent actions that we took at Ridges to care for COVID-19 patients have been critical to our ability to successfully serve our community, but they have come at a cost. We have identified and categorized our pandemic-related costs to-date as follows: Supply and Equipment Costs: Ridges had to purchase a significant amount of Personal Protective Equipment (PPE) to keep our staff safe. Because of shortages, PPE was not only hard to get, but prices increased over historic levels. We also acquired additional ventilators, additional monitors, and other equipment to prepare for a COVID-19 surge. Infrastructure Costs: Ridges made changes in our heating and ventilating (HVAC) systems to convert rooms to negative airflow in order to protect staff and other patients. Rooms designated to house confirmed or suspected COVID-19 patients required negative airflow, so that air was filtered and safely discharged outside the hospital without recirculation. As described in my earlier letter, additional Intensive Care Unit (ICU) rooms were converted to negative airflow, medical/surgical rooms were converted to serve as a COVID cohort unit and additional ICU rooms, and a fully negative airflow Respiratory Screening Unit was created to serve Emergency patients. Training and Education Costs: Additional staff training was performed to better prepare Ridges staff to care for COVID-19 patients, educate staff on how to properly don and doff PPE without becoming infected in the process, and train staff deployed to different areas of the organization due to COVID-related needs and the shutdown of significant parts of our operation. We respectfully ask that Rosemount allocate $53,348 from the $1,833,933 received by the City to help Ridges Hospital offset non-reimbursable costs that the hospital has incurred to-date for supplies and equipment, infrastructure and training and education in response to the pandemic. The amount we are requesting is the proportional market share of hospital admissions Rosemount represents within our primary service area. We are making similar requests of neighboring municipalities. Equal Opportunity Employer If you need any additional information or have any questions, please feel free to contact me directly at bknapp1@fairview.org. Andy McCoy at amccoy2@fairview.org and Mary Edwards at medward1@fairview.org may also be reached for questions. We thank you for working with us to understand Ridges Hospital’s extraordinary preparation efforts and costs incurred to safely care for community residents during the coronavirus pandemic. We cherish our long-standing partnership with Rosemount as we have served the community for 36 years pre-COVID-19, continue to care for residents as the coronavirus pandemic continues, and hope to care for Rosemount residents well into the future. Warmest regards, Brian Knapp Vice President, Operations cc: Logan Martin, City Administrator Equal Opportunity Employer Ridges Hospital 201 E. Nicollet Boulevard Burnsville, MN 55337 August 14, 2020 Mayor Bill Droste City of Rosemount 2875 145th Street West Rosemount, MN 55068-4997 Dear Mayor Droste: I am writing with more details to support Ridges Hospital’s Coronavirus Relief Fund request. Of the almost 63,000 COVID-19 cases diagnosed in Minnesota, 4610 or 7.3%, are from Dakota rd County (3 in State). Thirty-three percent of Rosemount residents admitted to a hospital in 2019 were admitted to Ridges Hospital and twenty-five percent more were admitted to a sister Fairview hospital. As Ridges Hospital cares for almost 60% of Emergency patients in its Primary Service Area, many Rosemount residents requiring emergency care and hospitalization received care at Ridges and will continue to do so as the coronavirus pandemic continues. As we noted earlier, our pandemic-related costs have included supplies and equipment such as Personal Protective Equipment to keep our staff and patients safe, infrastructure changes to treat COVID-19 patients and ensure a safe environment for staff and non-COVID patients, and training and education to prepare staff for the demands of the coronavirus pandemic. Ridges Hospital received $4,890,597 in CARES Act Provider Relief Funds out of $175 billion distributed by the U.S. Department of Health and Human Services to hospitals and healthcare providers. This did help alleviate some of the early impact of COVID-19. Unfortunately, during the months of March through June, Ridges lost $23,706,236 in revenue due to, for instance, patients canceling or deferring non-time-sensitive surgeries and other procedures. Ridges Hospital’s requests of local governments focus solely on the incremental costs due to COVID-19 which totaled $871,694 from March through June. The amount we are requesting, $53,348, is the proportional market share of inpatient admissions to Ridges Hospital which Rosemount represents, 6.12%, multiplied by this cost figure. We expect our incremental, excess costs due to COVID-19 to continue to grow through the remainder of 2020 and into 2021 with little, if any, potential for additional coronavirus pandemic funding expected from federal or state sources. Equal Opportunity Employer We hope these details help as you deliberate on your COVID-related funding priorities. If you have questions, please contact me at bknapp1@fairview.org. Andy McCoy at amccoy2@fairview.org and Mary Edwards at medward1@fairview.org may also be reached with questions. Thank you once again for your consideration of our request. Warmest regards, Brian Knapp Vice President, Operations cc: Logan Martin, City Administrator Equal Opportunity Employer CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2020- 117 RESOLUTION APPROVING ADDITIONAL ALLOCATIONS OF THE CITY OF ROSEMOUNT’S CARES ACT FUNDS WHEREAS, the spread of COVID-19 in the United States and Minnesota has raised serious public health concerns and resulted in a great deal of uncertainty, and much remains unknown about the virus and how it spreads; and WHEREAS, On March 13, 2020, Governor Tim Walz issued Emergency Executive Order 20-01 declaring a state of peacetime emergency to address the COVID-19 pandemic in Minnesota, which triggered activation of the emergency management plan of the City and enabled the City to exercise its emergency powers; and WHEREAS, The Governor has subsequently issued additional Executive Orders to combat the impacts of COVID-19 within the State of Minnesota, which include closures of schools, bars, restaurants, and other places of public accommodation, and directing Minnesotans to stay at home (with exceptions for obtaining necessary supplies, healthcare and similar needs) unless they are engaged in critical sector work; and WHEREAS, On March 17, 2020, the City Council adopted Resolution No. 2020-44, declaring a local emergency and directing City staff to take appropriate action to facilitate the directives of the Council and authorizing City staff to take actions deemed necessary to protect the public health and safety; and WHEREAS, the City has received Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) funds from the State of Minnesota; and WHEREAS, at its August 4, 2020 meeting the City created the Rosemount CARES Small Business Grant Program and has determined to use $500,000 of CARES Act funds to provide grants to small businesses within the City that have been impacted by COVID-19 due to required closures or decreased business; and WHEREAS, the CARES Act and associated guidance from the US Department of the Treasury provide that funds may be used to provide necessary emergency assistance to individuals impacted by a loss of income due to the COVID-19 public health emergency, including assistance to avoid evictions, and to provide food delivery to vulnerable populations and other similar expenses to ensure compliance with public health measures; and WHEREAS, CARES Act funds may be used to support public or private hospitals, clinics, and similar facilities for necessary eligible expenses; and WHEREAS, CARES Act funds may be used to cover eligible expenses incurred by local 1 governments in responding to the COVID-19 health pandemic; and. WHEREAS, the City Council is prepared to authorize a subsequent round of funding allocations to support these described purposes; and NOW, THEREFORE BE IT RESOLVED by the Rosemount City Council as follows: 1. The City of Rosemount shall provide a $53,348 grant to Fairview Hospitals to support their role in the COVID-19 public health crisis to be used on eligible expenses as defined in federal and state guidance. • The City of Rosemount finds that a grant to Fairview Hospitals is a necessary expenditure based on submitted information confirming $871,694 spent by Fairview in response to the COVID-19 public health crisis. • The City of Rosemount represents 6.12% of inpatient admissions to Fairview Ridges hospital, which proportionally equates to a $53,348 grant. th ADOPTED this 20day of October, 2020 by the City Council of the City of Rosemount. William H. Droste, Mayor ATTEST: Erin Fasbender, City Clerk 2