REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 27, 2024
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Charge Description Master Increase
End
RECOMMENDATION(S)
Recommendation
Authorize Arrowhead Regional Medical Center to amend and increase the rates in the Arrowhead Regional Medical Center Charge Description Master by 8%, effective March 1, 2024.
(Presenter: William L. Gilbert, Director, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The Charge Description Master (CDM) will allow Arrowhead Regional Medical Center (ARMC) to bill for all charges consistent with operational expenses and third-party reimbursements with the commitment towards full cost recovery. This increase is estimated to generate approximately $3.9 million in additional net revenue per year, which will be utilized to offset against anticipated increased costs to ARMC's operations.
BACKGROUND INFORMATION
Approval of this item will authorize ARMC to increase the rates on the Charge Description Master by 8% which would keep ARMC's charges equivalate to area market rates. The adjustment in patient charges will correspond to and result in an increase in reimbursement from non-governmental payors.
This 8% increase of charges will assist in recovering necessary revenue needed to provide healthcare for San Bernardino County residents. The cost of medical care is affected by the implementation of costly new procedures and drugs. Additionally, the minimum wage increase in California impacts healthcare costs.
The CDM is the price list for services and items provided at ARMC facilities and includes the comprehensive listing of billing codes for such services and item...
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