Title
Public Health Department requesting direction on how to respond to the request by the El Dorado County Community Health Center (CHC) for forgiveness of the debt payment of $300,000 owed to the County for setup, expansion, and operation of the Health Center facility on Golden Center Drive, noting Chief Administrative Officer recommending extension of the term of repayment for three years, to December 31, 2010. (Cont'd 1/8/08, Item 35)
FUNDING: Tobacco Settlement.
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Fiscal Impact/Change to Net County Cost: If CHC is held to repay the $300,000 (paid out of Tobacco Settlement) owed to the County, those funds could be used to enhance and continue services provided under the Children's Health Initiative, expand health insurance coverage to children who could otherwise not afford it, or be applied to other health-related projects.
Background: Under the guidance of the Public Health Department, the establishment of CHC was approved by the Board of Supervisors using funding from the Tobacco Master Settlement Agreement. CHC now operates full time and has become the primary medical care provider for Medi-Cal, CMSP, underinsured, uninsured and indigent patients on the Western Slope of El Dorado County. The County funded the startup of CHC and provided funding for renovations to the facility from County's Tobacco Master Settlement Agreement to make up the difference between the Center's revenues and expenditures while they explored and sought alternative funding sources. Of that money, $300,000 was loaned to CHC by the Board on the condition it be paid back by the end of the contract term, set to expire December 31, 2007. In the interim, CHC successfully obtained Federally Qualified Health Center (FQHC) designation, which enabled it to fiscally sustain its operations.
Recently, CHC contacted the Department asking for forgiveness of the $300,000 payment after the Department requested repayment of the loan by December 31, 2007. Citing insufficient funds to rep...
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