Supervisors Receive New Request for Extra Funds

Just weeks after pledging not to approve new spending until the county’s financial problems are straightened out, the Board of Supervisors is being asked to dip into its general fund to pay for $1.3 million worth of programs to appease federal regulators.

Health Care Agency Director Pierre Durand made the request, saying his agency does not have the money and should not have to pay for the array of new programs required by federal regulators as part of a $15.3-million settlement this year over improper Medicare billings.

The $1.3 million is in addition to the $15.3-million settlement.

But Supervisor John Flynn said he remains committed to protecting the general fund, which covers the county’s operating expenses.

“I don’t know where it’s going to come from but it’s not going to come out of the general fund,” said Flynn, adding that he had discussed the matter with acting Chief Administrative Officer Bert Bigler.

Flynn said he believes the funding request will be postponed until Durand and Bigler can work out a compromise.

County officials say even if they want to, supervisors can’t free up the full $1.3 million. The county has only $1.1 million in its contingency fund, which is part of the general fund.

If Durand’s request is rejected by supervisors, the money might have to come out of the Health Care Agency’s budget, which could be equally problematic. “Right now, we don’t have $1 million,” said Michael Powers, the agency’s deputy director. “We don’t have the funding budgeted to pay this cost. This is an additional and extraordinary expense.”

Durand and officials sympathetic to him have said the Health Care Agency already is strapped, and should not be made to pay for a settlement caused by a Medicare scandal the agency did not create.

While the federal probe put an end to years of improper billing practices, it also jeopardized the county’s clinics and cost the county more than $15 million in reimbursements and fines. As a result, the county faces a $5-million deficit despite strong economic times.

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Of the funding requested, about $761,000 would pay two consulting firms, Deloitte & Touche, and Ernst & Young, to train employees to properly bill the federal government, and to conduct ongoing audits--both required by the settlement.

Also, Durand is asking for about $239,000 to help implement any unforeseen requirements the consultants might impose.

Additionally, the settlement requires the budget for the county’s Inpatient Psychiatric Unit to be transferred from the county’s mental health department to the Ventura County Medical Center, for which Durand is administrator. That includes the transfer of accrued vacation and sick-time pay, worth $340,100.

Last week, supervisors rejected Behavioral Health Director David Gudeman’s request for an additional $385,000 from the general fund to pay for extra nurses to review billing records for accuracy, which is also required under the federal settlement.

Supervisors said if Gudeman looked for ways to cut costs and squeeze funds from his own budget, they would consider early next year forcing the Human Services Agency to pay part of the cost of the nurses.

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Supervisor Frank Schillo, who suggested that possibility, said Monday he thinks the agency also should be paying at least some of the $1.3 million that Durand requested. His reasoning: Officials there pushed for the failed merger of mental health and social services, which triggered the settlement and its fines.

“[Durand] is being saddled with all the expenses of the merger, and it’s really unfair,” Schillo said. “His agency had nothing to do with it.”

Flynn said he doubts the Human Services Agency--which draws much of its budget from state and federal dollars--can afford anything close to $1.3 million.

Other supervisors could not be reached Monday. Transferring money from the contingency fund requires the approval of at least four of the five supervisors.

Durand and Gudeman also did not respond to requests for interviews.

Ultimately, the $1.3 million will have to be found. If the training, auditing and psychiatric-unit transfer are not completed as agreed upon in the settlement, federal regulators would probably impose more fines, which could reach into the millions of dollars.

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Meanwhile, as the fiscal problems continued, Flynn said he will call for all five supervisors to plan an emergency lobbying session in Washington early next year. By meeting with Ventura County’s congressional delegation, as well as federal regulators, he hopes supervisors can secure funds to help pay the settlement, or can reduce the settlement’s price tag. Flynn said he will propose that each supervisor pay his or her own way, rather than go on the county’s dime.

Flynn said he also will float the idea that supervisors meet every other day, rather than once a week, until the current financial matters are resolved.

On a related matter, supervisors are expected to proceed with their search today for a county administrator to replace David L. Baker, who resigned last month after only four days on the job. Baker’s letter of resignation to the Board of Supervisors cited “near financial chaos.”

Human Resources Director Barbara Journet declined Monday to say how many candidates are being considered to replace Baker, or to identify any of them. However, Schillo said supervisors may interview at least one candidate today in closed session.