Inter-Governmental Transfers: Benefitting Grossmont Hospital

For the eighth straight year, Grossmont Healthcare District (GHD) is doubling the positive impact of locally-generated tax dollars on the community through a program that accesses matching funds from the federal government to benefit Grossmont Hospital.

GHD participates in an Inter-Governmental Transfer program as part of our mission to protect local resources at Grossmont Hospital. Inter-Governmental Transfers (IGTs) are transfers of public funds between governmental entities, and they constitute a legitimate funding source to aid in providing care to hospital patients covered by Medi-Cal.

GHD has participated in the IGT program to allow federal funds to flow back to the local community. This has proven to be an efficient use of District revenues, with locally-generated tax dollars being augmented by additional matched dollars.

In today’s healthcare climate, IGTs allow GHD and Sharp HealthCare to work in partnership for the benefit and protection of the hospital, leveraging tax dollars to ensure continued financial viability of the only hospital located in East County.

According to American Community Survey data, more than 20 percent of East County adults ages 18-64 lacked health insurance coverage in 2013. These gaps in coverage have a direct effect on the hospital; in 2016, Sharp HealthCare provided $319 million in unreimbursed community benefit programs and services, which included uncompensated care for patients who are unable to pay for services.

IGT funding alleviates some of the financial burden associated with these uncompensated costs by providing supplemental Medi-Cal reimbursement to benefit Grossmont Hospital patients, provided by the federal government through the California Department of Health Care Services (DHCS).

Funding Medi-Cal is a shared responsibility between the federal and state governments, with most funding made available through the state budget. Participating in the IGT program each year allows the GHD Board to determine whether it serves the best interests of the District to contribute local public funds toward this purpose for the benefit of Grossmont Hospital.

For the last several years, the District IGT payment has been doubled by federal funds distributed through the California Department of Health Care Services, with $1 million of District funding resulting in $2 million to Grossmont Hospital. In 2015, the Board voted to communicate to DHCS that the District would consider a one-time increase to $2 million in funding in FY 2017-18 (to be matched with IGT funds of $2 million from the State, thus resulting in $4 million to the Hospital).

For more information on the IGT program, visit the California DHCS website.