CCH Releases FY2017 Preliminary Budget

Cook County Health’s (CCH) CEO, Dr. Jay Shannon, submitted the health system’s preliminary Fiscal Year (FY) 2017 budget to the CCH Finance Committee today. The 2017 budget represents a 3 percent decrease over 2016.

The proposed $1.8 billion budget allows CCH to invest in community-based outpatient clinical care, including the expansion of services like behavioral health care and new/upgraded outpatient facilities, as well as meet the goals set in its recently adopted three-year strategic plan.

CCH continues to reduce its reliance on county taxpayers for operations. The Cook County Health Fund allocation has been reduced by more than 77 percent in recent years, from $481 million in FY09 to $110 million proposed for FY17. Today, that local tax allocation represents approximately 6 percent of CCH’ revenues.

“This budget supports the Cook County Health’s ongoing transformation into a modern, efficient, patient-centered health system, and will help us further enhance care quality and safety, improve the patient experience and position the system for success in the years to come,” said Dr. Jay Shannon, CCH CEO.

In 2017, CCH has projected growth in primary and specialty care, labor and delivery and surgical volumes. The health system intends to begin work next year on new or renovated space for at least three outpatient clinical facilities, including the Central Campus Health Center on Chicago’s near west side and a regional outpatient center to serve the Provident community. The new space will replace outdated and inefficient clinical facilities currently in use and will be reflective of the high quality, modern care CCH provides. Ground breaking for the Central Campus Health Center will begin in early 2017 and will allow CCH to vacate the Fantus Health Center and two dilapidated administrative buildings that would otherwise require $128 million in deferred renovations. CCH also plans to hire additional clinical staff (predominately nurses) in key areas, including behavioral health, perioperative services, labor and delivery, case management and medical/surgical, critical care and neonatal units.

CountyCare, CCH’ Medicaid managed care health plan, is expected have 142,500 members in FY17, generating more than $809 million in revenue. This revenue pays claims costs for member care.  In 2017, CCH expects to receive $221 million in reimbursement for care rendered to CountyCare members. In addition to caring for CountyCare patients, CCH continues to increase its contracts with managed care health plans and commercial insurers to further drive new reimbursement to the system.

Public hearings will be held on Wednesday, August 24 at 9:00 a.m. and 6:00 p.m. in the CCH Board Room, 1900 W. Polk Street, 2nd Floor, Chicago. Individuals can register to speak, submit written testimony and find a copy of the budget presentation at http://www.cookcountyhhs.org/about-cchhs/governance/budget-information/.

Upon approval by the CCH Board of Directors, the 2017 budget will be submitted to the Cook County Board of Commissioners for their consideration and inclusion into the County’s overall budget.