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TO: Mayor Richard C. Irvin
FROM: Mayor's Office
DATE: April 19, 2024
SUBJECT:
A resolution authorizing the Mayor's signature on an updated 340b agreement for Presence Central and Suburban Hospital Network d/b/a Presence Mercy Medical Center.
BACKGROUND:
In 2009, the City of Aurora signed a Memorandum of Understanding, now “Health Care Services Agreement”, with then Provena Mercy Medical Center, in support of their status as a 340b organization. To maintain this designation, the hospital needs an updated agreement signed by the city with their current name, Presence Central and Suburban Hospital Network d/b/a Presence Mercy Medical Center. The 2009 Agreement is attached as a reference.
DISCUSSION:
Presence Mercy Medical Center is a not-for-profit hospital that utilizes a drug discount program established under Section 340B of the Public Health Services Act (the “340B Program”). In order to continue to offer this service, the hospital must enter into an updated “Health Care Services Agreement” with the local unit of government, which is outlined in the recitals below.
IMPACT STATEMENT:
Authorization of this agreement will allow Presence Mercy Medical Center to continue to provide valuable and affordable healthcare services to our community.
RECOMMENDATIONS:
Staff respectfully requests authorization of this agreement.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the Mayor to sign an updated “Health Care Services Agreement” between the City of Aurora and Presence Central and Suburban Hospital Network d/b/a Presence Mercy Medical Center.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, Hospital is a nonprofit hospital that plays a vital role in the health care safety net by supporting programs that benefit the indigent, uninsured, and underinsured population in the State of Illinois; and
WHEREAS, Hospital desires to participate in the drug discount program established under Section 340B of the Public Health Services Act (the “340B Program”); and
WHEREAS, in order to participate in the 340B Program, Hospital must contract with a unit of state or local government pursuant to which Hospital commits to provide healthcare services to low-income individuals who are neither entitled to benefits under Medicare (Title XVIII of the Social Security Act (SSA) nor eligible for assistance under Medicaid (Title XIX of the SSA); and
WHEREAS, Hospital desires to make such a formal commitment to City; and
WHEREAS, City agrees to accept such commitment on behalf of the citizens of City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the commitments of the parties as set forth in Exhibit A to this Resolution shall be and hereby are approved; and further
BE IT RESOLVED, that the Mayor shall be and hereby is authorized to execute the Agreement as set forth in Exhibit A or in a substantially similar form on behalf of the City.