Number
070515
Version
Substitute 2
Reference
Sponsor
The Chair
Title
Substitute resolution authorizing the cancellation of receivables from the Milwaukee Health Services, Inc. (MHSI).
Analysis
A resolution authorizing cancellation of the City’s claim against Milwaukee Health Services, Inc. (MHSI) and authorizing the transfer of $170,864.48 from the Municipal Health Services Program (MHSP) Program Income account for purposes of writing off a portion of MHSI’s receivable balances.
Body
Whereas, The Milwaukee Health Services, Inc. was a participant in the Municipal Health Service Program funded through the Health Department by the Health Care Financing Administration/Centers for Medicaid and Medicare of the Federal Government; and
Whereas, The Milwaukee Health Services, Inc. occupied space at the Isaac Coggs Health Center and has outstanding occupancy and operating maintenance charges to the City of Milwaukee in the amount of $365,520.48; and
Whereas, Resolution 031612 adopted April 13, 2004, provided for the original balance of debt owed to the City of Milwaukee in the amount of $392,587 to be considered no-interest debt payable to the city with 10% of any surplus of $500,000 or more that MHSI realized in any fiscal year until the debt was paid; and
Whereas, The actual amount of MHSI’s outstanding occupancy and operating maintenance charge as of March 19, 2004 was $382,587.18 and $17,066.70 was paid towards this debt on November 3, 2005 as a result of an agency surplus, the current balance is $365,520.48; and
Whereas, Based on the current rate of repayment, MHSI’s outstanding debt would take a minimum of twenty (20) years to collect and settle this current liability, the City of Milwaukee Health Department has received an offer from MHSI to pay 30% of the current liability of $365,520.48 in the amount of $109,656; and
Whereas, The MHSI has disclosed a preliminary audit for their agency indicating an approximate $1.7 million surplus in the Fiscal Y...
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