Mackinac Straits Hospital Offers 25 Percent Discount for Inmate Care

2005-08-25 / News

By Karen Gould

The county may get a discount of 25 percent on inmate medical care at Mackinac Straits Hospital, County Commissioners learned last week. Mackinac Straits Hospital’s chief financial officer, Jason Anderson, told commissioners that the hospital is willing to consider giving the county a 25-percent break with all inmate medical care costs and that the county has approximately $2,300 credit with the hospital because some bills were paid by Blue Cross Blue Shield and then paid again by the county.

Mr. Anderson told commissioners he and Rod Nelson, hospital CEO, had discussed offering a discount to the county. Now, after meeting with commissioners, he would bring the 25-percent discount to Mr. Nelson for final approval. On Friday, Mr. Anderson told The Saint Ignace News the 25-percent discount could go into effect August 1 and the county’s credit balance would go toward paying this month’s bills first.

Commissioners heard the good news during a committee of the whole meeting Thursday, August 18, and said they would take action on the proposal at their regular meeting Thursday, August 25. The new process would save administrative time for both the county and the hospital. The hospital would bill the county directly, and the county would pay the bill to the hospital, which would help eliminate the billing confusion and double payments that have occurred.

Commissioners learned from Sheriff Scott Strait in July that inmate medical costs had skyrocketed and he was working on ways to reduce them. In August, the sheriff told commissioners the county has paid Blue Cross Blue Shield (BCBS) $49,950.26 this year and his calculations show they should have paid $35,000. Even so, last year’s total payments for inmate medical care were $26,600. The department still is waiting to hear from BCBS on the matter, said Undersheriff Darrell Sadler, who attended last Thursday’s meeting.

Lori Johnston, chief deputy clerk, told commissioners that the county has spent $35,541 with Mackinac Straits Hospital so far this year for inmate care, with total medical charges of approximately $57,000 for the year. Inmates have reimbursed the county a mere $971. The county’s policy is to bill the inmates for medical charges. Inmates are given the bill upon release and have 30 days to pay their account before it is turned over to a collection agency.

Based on a 10 percent administrative fee the County has been paying to BCBS for inmate costs with the local hospital, the county actually would realize a 35 percent savings. For inmate medical charges, the County has used a discount program with BCBS, but Mr. Anderson told commissioners that Mackinac Straits is a small hospital, and BCBS pays 100 percent of the hospital’s charges. Therefore, the County gets no discount from the carrier. In fact, he explained to commissioners, BCBS adds a 10 percent administrative fee to any charges incurred.

Undersheriff Sadler advised commissioners that come September, BCBS will raise the 10-percent administrative fee to 11 percent.

The administrative costs charged by BCBS are to cover time for searching for other insurance coverage an inmate may have, but Mr. Anderson did not believe that BCBS had found any other insurance carrier that any inmate had this year. Arlene Black of the hospital’s billing department said they would bill an inmate’s carrier before billing the county.

Commissioners discussed keeping the BCBS discount program for all other hospital care that might be required for inmates, and will formalize the decision at their next meeting.

Sheriff Strait has initiated a new program to cut down on hospital visits by having an on-site nurse at the jail two half-days a week to screen all medical requests. The program seems to be working, with July emergency room visits at zero.

In other discussions, commissioners agreed they needed to discuss the future of their assistant’s position. They also acknowledged they needed to amend the Economic Development Corporation’s (EDC) budget for the second time this month, leaving the group with a $9,000 budget to cover $8,489 already incurred through the end of July. Commissioners are scheduled to make a change in EDC funding at their at their August 25 meeting. The decision to cut the funding was based on commissioners deciding the group has shown little progress. The EDC’s original 2005 budget was $52,900 and was cut to $6,200 earlier this month. After expenses, the EDC will be left with about $500.

Discussion also took place on other budgets and on this year’s audit bills. Concern also was expressed over high county building heat bills. Chair Dawn Nelson suggested purchasing new windows for the building in the spring, if finances permit. January’s heating bill totaled $3,000 for the County Building. Commissioners said they thought heat was being lost through the building’s single pane windows. Mrs. Johnston told commissioners that the windows were drafty and in the past she has had to cover her window in the winter to cut down on the cold draft.

Commissioners noted they have one month before making a decision on the future of their assistant’s position. On March 24, commissioners appointed Cindy Oliver as a temporary assistant to the board. At that time, the job was for six months while commissioners studied whether they need an administrative assistant or if they could get by using other county staff. Mrs. Oliver previously had been assistant to the county administrator. Commissioners eliminated that administrator’s office in February. That position was held by Jill Eyre, who resigned and now is the city manager in Douglas.

They also discussed turning over the management of the county Internet hot spots and revenue it generates to the clerk’s office. County Clerk Mary Kay Tamlyn was not at the meeting to comment on the workload requirements. The hot spots are wireless Internet paid access sites. Cards are sold in several locations in the city, including the marina, where Internet access is purchased by visiting boaters for $1 a minute. Someone needs to collect revenue received from card purchases and keep track of the card inventory. Michelle Walk, director of the EDC, has been managing the program through the Michigan State University Extension office, where she is the director. That agreement, however, is scheduled to expire October 31.

Commissioners also said they now need to seek bids for next year’s audit process.

Commissioners next meet Thursday, August 25, at 1:30 p.m. in the commissioners room at the County Building.

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