City of Phoenix Council Shows Leadership in Helping Phoenix Children's Respond to COVID-19 Financial Impact

PHOENIX, May 7, 2020 /PRNewswire/ -- On Wednesday, the City of Phoenix City Council authorized the City Manager to enter into an inter-governmental agreement with the Arizona Healthcare Cost Containment System (AHCCCS) to utilize the City's Pediatric Health Care Initiative Ordinance. The authorization continues a long partnership between Phoenix Children's Hospital and the City of Phoenix. The Pediatric Health Care Initiative Ordinance, which was extended in 2019, enables the City to accept private donations to support increased payments from the Arizona Health Care Cost Containment System (AHCCCS) to Phoenix Children's. This new ordinance allows the City to fully implement the program.

"As a Mayor and a mom, I deeply understand the real value Phoenix Children's brings to our community. They don't just provide peace of mind, they provide hope. By expanding the city's partnership with Phoenix Children's, we can ensure the continued success of this valuable community asset beyond COVID-19."

The partnership with the City of Phoenix is an example of one of many ways Phoenix Children's has worked with state and local government to mitigate Medicaid payment losses.

"Phoenix Children's is grateful to Mayor Gallego, members of the City Council and to the City's legal and finance staff for collaborating once again with Phoenix Children's," said Bob Meyer, President and CEO of Phoenix Children's. "Their willingness to help us find and execute pioneering solutions to providing care to Arizona's most vulnerable population is truly commendable. As with so many interactions we have had at all levels of City government, Mayor Gallego is not satisfied to do business-as-usual, but challenges her team to be innovative."

The COVID-19 crisis has created significant challenges across the healthcare industry, uniquely impacting pediatric hospitals like Phoenix Children's. Prohibitions on non-emergency surgeries and delays in patient care have caused decreases of 67% to Phoenix Children's patient volume. To date, much of the federal financial assistance has been distributed based on Medicare revenue and expenses and on a per COVID patient basis. Medicare distributions target hospitals serving older populations not those serving pediatric patients. Phoenix Children's forecasts a year end loss of more than one hundred forty million of net patient revenue due to delayed patient care and Medicaid shortfalls.

The support from the City of Phoenix's initiative will be one of the many approaches Phoenix Children's relies on to ensure the hospital can continue to provide world class service to the children of Arizona and retain employment for their highly skilled medical professionals during this unprecedented health and economic crisis.

About Phoenix Children's

Phoenix Children's Hospital is Arizona's only children's hospital recognized by U.S. News & World Report's Best Children's Hospitals. For 35 years, Phoenix Children's Hospital has provided world-class inpatient, outpatient, trauma, emergency and urgent care to children and families in Arizona and throughout the Southwest. As one of the largest children's hospitals in the country, Phoenix Children's delivers care across more than 75 pediatric specialties. Recognized specifically for its patient-focused innovation, medical education, growth and research, Phoenix Children's was named Business of the Year and Exceptional Innovator by the Greater Phoenix Chamber in 2018. For more information about the hospital, visit http://www.phoenixchildrens.org.

SOURCE Phoenix Children’s Hospital

Related Links

http://www.phoenixchildrens.org