6 Jun 2000
The Dallas School Board approved an interlocal agreement with Houston Independent School District to manage Medicaid reimbursements. The agreement, approved May 25, saves the Dallas Independent School District $400,000 in consulting fees and increases the district's opportunity to double its Medicaid reimbursement revenue.
The district provides health services to students who qualify under the Medicaid umbrella. A portion of the cost of those services is reimbursed through a federal government program. Previous to the agreement with HISD, the Dallas school district had contracted with Deloitte and Touche, a national consulting firm, to manage its Medicaid reimbursements. This firm charged the district 15 percent of all revenue collected.
Under the new agreement with HISD, the district will get a 33 percent reduction in rate. The agreement with HISD will cost the district only 10 percent of all revenue collected, netting a saving of $400,000 over the next three years. HISD will manage and provide Medicaid billing and claiming services for the DISD's School Health and Related Services Program.
Effective July 1, the partnership with HISD creates an alignment with a district that has only 38 percent more students than Dallas, and yet Houston gets 300 percent more Medicaid reimbursement revenue, Chief Operations Officer William Coleman said.
"Houston is the most aggressive Texas district in getting Medicaid reimbursement revenue," he said. "By using Houston's successful claiming methods, DISD might be able to double its Medicaid reimbursement revenue."
DISD receives around $8 million in Medicaid reimbursement revenue yearly. Increasing the revenue collected to $16 million affords the district to provide more health services and equipment for the students, Mr. Coleman said.
The current health services provided by district range from basic health needs to psychological therapy and counseling. In addition to reducing the consulting fee and increasing the health services to students, Mr. Coleman believes the partnership is a powerful alignment in which the DISD students will only benefit.
"DISD gets to be a partner with a school district that has proven its effectiveness to lobby state law makers on medical issues affecting school districts," he said. "Houston has been successful in getting more laws changed to provide more care for school children."