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have conducted several of these studies for other counties. The attached contract with DMG- <br />Maximus, Inc. will provide a cost study that will meet the department's needs in this regard. <br />After DMG-Maximus,. Inc. finishes its report, the Board of Health will consider the fees to be <br />established and recommend their establishment as part of the regular budget process for 2000- <br />2001. <br />FINANCIAL IMPACT: The results of the cost study should enable the department to increase <br />its revenue earned through fees. It is difficult to project how much additional revenue can be <br />earned since the department has not kept financial eligibility information for patients in most <br />programs offered. In 1998-99 revenues eamed through Medicaid reimbursements totaled <br />$462,147.03 for personal health services. This cost study will enable the department to make <br />the required transition and remain stable in these earnings. In addition, it is projected that the <br />department will be able to eam at least $25,000 in new revenue through additional third party <br />reimbursements from private insurance companies currently not available due to a lack of an <br />established fee structure. This is a low number since it is assumed that a high number of the <br />health department's patients that are not Medicaid eligible will not have private insurance and <br />have incomes that will only allow them to pay a minimum fee. These new revenues will help <br />offset increased costs of medical and pharmaceutical supplies. <br />The contract amount of $11,000 was included in the department's approved budget for the <br />current fiscal year. <br />RECOMMENDATION(S): The Manager recommends that the Board approve the contract with <br />DMG-Maximus, Inc. and authorize the chair to sign. <br />