Guest column: Ensuring transparency to our patients, community, and taxpayers

As a public entity, the leadership of our Ventura County Health Care Agency understands the necessity of ensuring transparency to our patients, our community, and Ventura County’s taxpayers. Due to the complex nature of healthcare financing, I feel it important to provide context and clarity regarding the assertions outlined by the Ventura County Taxpayers Association in its recent guest column published in the Aug. 1 edition of The Star.

The Ventura County Medical System (VCMS) consists of two hospitals, an inpatient psychiatric unit, and a network of 26 clinics. The Ventura County Medical Center, a Level II Trauma Center and community stroke center, is home to the county's only Pediatric Intensive Care Unit and the sole inpatient pediatric ward in the West County. Eighteen of our outpatient clinics are Federally Qualified Health Centers (FQHCs), committed to providing comprehensive care to all patients, including those who are uninsured and underserved. Without this safety net system, many residents in Ventura County would be without adequate health care.

VCMS has been recognized at the state and national level for the high-quality, comprehensive care that we provide.   For six consecutive years, Ventura County Medical Center has been named a "Meritorious Hospital" by the American College of Surgeons for exceptional surgical quality outcomes. Additionally, VCMS' exemplary performance in the Quality Incentive Pool (QIP) program has earned it the Top Performance Award from the California Department of Health Care Services, reflecting our commitment to primary and preventive care, the management of acute and chronic conditions, and the advancement of health equity.

VCMS receives a general fund advance from the county to provide these critical services to the community. The substantial advance is largely attributable to the biennial funding cycle of various statewide quality and supplemental funding programs for California’s Designated Public Hospital systems. In order to be eligible to receive reimbursement from the state for providing essential services to the community, VCMS must provide services years before it receives payment. This leads to an imbalance between expenses and available cash flow.

To illustrate, as of December 31, 2023, VCMS had a general fund advance balance of $287 million and was waiting to receive funds from programs such as the Quality Incentive Pool program, Enhanced Payment Program (EPP), and Global Payment Program (GPP) for 2022 and 2023, with receivables exceeding $290 million.

Despite the cash flow challenges posed by the state’s biennial funding cycle, Ventura County Medical System has reported accrual-based net income above break-even for the last three audited years, with an increase in net assets from $72.6 million as of June 30, 2020, to $124.5 million as of June 30, 2023, the most recently audited period.

To further ensure VCMS’ ongoing fiscal stability and ability to provide care to the community for years to come, we will continue to pursue initiatives such as implementation of an updated payment model for hospital services, resetting and increasing clinic Prospective Payment System rates, pursuit of additional grant funding for FQHCs, expansion of services (such as endoscopy and dental care), and continued high performance with quality-of-care measures.

Dr. Theresa Cho is the Director of the Ventura County Health Care Agency.

This article originally appeared on Ventura County Star: Guest column: Ensuring transparency to our patients, community, and taxpayers