CCHHS Releases FY2018 Preliminary Budget

Cook County Health & Hospitals System’s (CCHHS) CEO, Dr. Jay Shannon, submitted the health system’s preliminary Fiscal Year (FY) 2018 budget to the CCHHS Finance Committee today.

The proposed $2.4 billion budget contemplates the growth of CountyCare membership, strengthens critical revenue-focused business functions, allows for the continued development of key clinical areas and supports the overall transformation of CCHHS as a patient-centered health system to meet goals set in its three-year strategic plan.

CCHHS’ FY18 budget is built to support continued operational efficiencies to increase revenue and reduce expenditures. In 2018, CCHHS has projected growth in primary and specialty care, and surgical volumes. The health system is also anticipating increased revenue as a result of new/expanded contracts with insurers, greater alignment with FQHC partners and enhancing billing, coding and denial management capabilities. CCHHS’ efforts to realign its workforce and reduce overtime are ongoing.

As the challenges to federal health care reform persist, CCHHS is seeing an increase both in its number of uninsured patients and uncompensated care expenses. This year, 39% of CCHHS patients are uninsured, up from a historical low of 34% in 2016. CCHHS’ uncompensated care costs have increased from $313 million in 2014 to nearly $503 million this year. This trend is expected to continue into FY18.

CountyCare, CCHHS’ Medicaid managed care health plan, is expected have 225,000 members in FY18, generating more than $1.2 billion in revenue. This revenue pays claims for member care rendered by both CCHHS and non-CCHHS providers. The anticipated increase in membership is a result of the State of Illinois’ recent restructuring of managed care contracts. CountyCare was selected as one of six managed care organizations to provide coverage to Medicaid enrollees in 2018 in Cook County.

Public hearings will be held on Monday, August 28 at 9:00 a.m. and Tuesday, August 29 at 6:00 p.m. in the CCHHS Board Room, 1900 W. Polk Street, 2nd Floor, Chicago. Individuals can register to speak, submit written testimony and find a copy of the full budget presentation at http://www.cookcountyhhs.org/about-cchhs/governance/budget-information/.

Upon approval by the CCHHS Board of Directors, the 2018 budget will be submitted to the Cook County Board of Commissioners for their consideration and inclusion into the County’s overall budget.