CCAC Hears an Update Regarding the Cook County Health & Hospitals System

CCAC would like to thank Douglas Voigt, Partner, and Paul O’Connor, City Design Practice, both of Skidmore, Owings & Merrill LLP for hosting the CCAC luncheon on Tuesday, March 14th. The membership heard from Dr. Jay Shannon, Chief Executive Officer, Cook County Health & Hospitals System. Cook County Health & Hospitals System (CCHHS) is one of the largest and most storied public health systems in the nation. CCHHS' historic mission includes providing care for more than 300,000 unique patients every year without regard for their ability to pay. 

The CCHHS is comprised of two acute-care hospitals, a robust network of community-based services, health services for detainees of Cook County Jail and the Juvenile Temporary Detention Center, the Cook County Department of Public Health and CountyCare, a Medicaid managed care health plan. 

According to Dr. Shannon, “Healthcare is eating up the economy. It constitutes 16% of the healthcare economy. The U.S. healthcare expenditure, by itself, would be the 5th largest economy in the world and it’s expected to surpass Germany in the next few years. Part of it has to do with the technology and improvement we have seen. Both improved quality of life and quantity of life has come at a great expense."

(L:R) Kelly O'Brien, Executive Director, CCAC; Paul O'Connor, City Design Practice, Skidmore, Owings & Merrill LLP; Dr. Jay Shannon, Chief Executive Officer, Cook County Health & Hospitals System; and Greg Hummel, Partner, Bryan Cave LLP

The Affordable Care Act (ACA) was passed in 2010 and Medicaid expansion happened in 2014. Dr. Shannon indicated, “The major tenets of the ACA were insurance reform, innovation/improvement, and expanded coverage. Medicaid expansion is the one that has the most direct impact on our health system.”

The healthcare expenditures per capita, per year is almost $10,000 per person. According to the National Health Expenditure Accounts (NHEA), an estimated $3.2 trillion was spent in 2016. However, the spend for Medicaid enrollees in Illinois is less than $5,000 per person, per year. 

Today in Illinois only 5% of residents are uninsured and in Cook County its closer to 6%. “Un-insurance is a big deal. There have been huge transformations based on the ACA. At a very high level, CCHHS has transformed from being a health care system that has taken care of a predominately uninsured population,” Dr. Shannon elaborated. As of today, two out of every three patients, roughly 67% are now insured to a health system that cares for a predominately insured population. For the 1/3 of the people that are not insured, they are accounted for in the $500M in services provided to them without an ability to recoup that money. Every year for the past 5 years, CCHHS is spending about $500M on uncompensated services. 

Medicaid is the single largest insurance carrier across the country today. Today Medicaid covers over 73 million Americans. It is the largest payer of long term support, including nursing home services. Dr. Shannon stated, “This is a mixed program with shared funding from the Federal and State level. The Federal Medical Assistance Percentage varies from 50-74% with the average being 61%, and in Illinois its 50%.” Dr. Shannon noted that, “1 in 4 Illinoisans are supported with health insurance coverage through Medicaid. There are 3.1 million beneficiaries statewide and half of them are children; there’s a $20.8 billion budget for medical assistance, 11 managed care organizations in Cook County and Illinois implemented mandatory managed care in 2014.”

Since 2013, CCHHS has operated CountyCare, a Medicaid managed care health plan which was made possible through the passage of the Affordable Care Act. CountyCare provides coverage and care to more than 145,000 Cook County residents through a network that includes more than 100 primary care access points and nearly all hospitals in Cook County.  CountyCare has been instrumental to CCHHS' transformation that has resulted in a positive bottom line for the past three years and a reduction in Cook County tax allocation by more than 75% ($370M) since 2009. Dr. Shannon specified CountyCare is the 3rd largest Medicaid health plan in Cook County and roughly 82,000 Medicaid expansion adults signed up in the first year. 

Across the state, more than 1 million people are receiving coverage post ACA largely through Medicaid expansion and a small amount through marketplace plans. Dr. Shannon highlighted, “In the last three years, the number of people who are uninsured has sequentially gone down. The proportion of people who are insured has gone up each year, due to a predominate growth in people with Medicaid coverage.”

In 2009, Dr. Shannon explained that Cook County tax payers contributed about $480 million to the operating expenses of the health system. For 2017, that number is down to $111.5 million. “The process of weening off taxpayer support as it relates to our needs of operating expenses was largely due to the growth in revenue in people being insured with Medicaid,” Dr. Shannon stated.

Dr. Shannon is aware of the impact the Affordable Care Act repeal has on the economy, people, and providers. Regarding the economy, there will be a $350 billion increase in the Federal deficit over next ten years, a loss of 2.6 million jobs in the U.S., including 84,000-95,000 in Illinois, and up to $13 billion in lost economic activity annually in Illinois. The impact of the ACA repeal on people will affect the national uninsured rate, which will increase from 9% to 21%. Dr. Shannon provided data that estimated 30 million Americans, including 1 million Illinoisans will potentially lose coverage, and likely care: 624,000 in Medicaid Expansion in Illinois and 350,000 in the Marketplace in Illinois. Other issues include regression of preventive/primary care efforts and elimination of benefits such as comprehensive behavioral health coverage. Providers will have a hard time adjusting to the impact of the ACA repeal. Dr. Shannon reported that $300+ million in just CountyCare reimbursements to local health care providers for care rendered to ACA/Medicaid expansion adults are at-risk, roughly $1+ trillion in new uncompensated care costs to U.S. health care providers over 10 years, a substantial increase in unmet health care needs, financial pressures on health care organizations, and increasing total health care costs for all consumers.

Hitting close to home, should Medicaid expansion be repealed, the Cook County Health & Hospital Systems will spend at least $100+ million more in uncompensated care due to a surge in uninsured patients and lose an estimated $200+ million in Medicaid revenue (CountyCare + reimbursements from other managed care plans). 

Despite the potential impact repeal, replace (or repair) could have on the system and regardless of federal action, CCHHS is committed to reinvesting in its facilities and services. “In part because of the Affordable Care Act, we have been able to stabilize the system financially for three years in a row, and reinvest $30 million in capital including MRI, Linear Accelerators, Cath labs, furniture, etc.,” Dr. Shannon noted. Also, Dr. Shannon unveiled plans for the new Regional Outpatient Center at Provident Hospital that will include primary care, diagnostic care, cardiology department and a 12-room operating suite. He also disclosed plans for the Central Campus Health Center slated to open in 2018, which will entail a 9-story, 4 floor event with services such as Dental, Ophthalmology, Oncology, Dermatology, and more. “We are committed to renovate or rebuild all community health centers in next 10 years.”

Dr. Jay Shannon addressing CCAC Audience at the March 14th Luncheon at Skidmore, Owings & Merrill LLP

Tuesday, April 11, 2017 at Jenner & Block LLP

Join us at Jenner & Block LLP on Tuesday, April 11, 2017 for the next CCAC meeting hosted by Donald Resnick, Partner, Jenner & Block LLP.

	WHAT:	CCAC MARCH MEETING
	GUEST SPEAKER:	Ginger S. Evans Commissioner Chicago Department of Aviation
	DATE:	Tuesday, April 11, 2017
	TIME:	12:00 -- 1:30 p.m.
	LOCATION:	Jenner & Block LLP 353 N. Clark Street,  Chicago, IL 60654
	HOST:	Donald Resnick Jenner & Block LLP
	RSVP TO:	Kelly O'Brien at kobrien@ccac.org

CCAC Addresses Realty Club of Chicago Audience

(L:R) P. Barton DeLacy, DeLacy Consulting LLC; Kelly O'Brien, Executive Director, CCAC; Gail Lissner, Appraisal Research Counselors; and David Arnburg, President, Realty Club of Chicago, Gould & Ratner LLP 

The Realty Club of Chicago founded in 1910 are comprised of members ranging from real estate developers, architects, attorneys, economists, brokers, appraisers, bankers, property owners and other professionals who serve the real estate industry. CCAC Executive Director Kelly O'Brien gave a presentation entitled: "21st Century Connectivity: Why You Should Care About Regional Economic Development and the Opportunities It Can Bring." O'Brien provided an overview of both the CCAC and its partner organization the Alliance for Regional Development.

To view the presentation, CLICK HERE.

The Magnificent Mile Association Hears About the Connector

CCAC Consultant Ed Zotti and Executive Director, Kelly O' Brien speaking to the Magnificent Mile Association Membership. 

CCAC was invited to present at the Magnificent Mile Association’s Transportation and Transit Project Review Meeting on March 21st. This association is a private, non-profit membership organization with a mission of preserving, promoting, and enhancing the Magnificent Mile and its surrounding area.  Recognizing that there are currently several transit and roadway proposals planned for downtown Chicago that would impact area accessibility, street traffic and the need for parking, The program included reports and discussion on three proposals:

1. The Redevelopment of North Lake Shore Drive (with potential reconfigured access at Chicago Avenue and Oak Street)

2. Updates on the River North/Streeterville Transit Study by the City’s Department of Transportation

3. The Chicago Central Area Committee’s (CCAC) Transit Connector Plan, which proposes linking the train stations with locations in River North, Streeterville and Navy Pier as well as other sectors of the Central Business District

CCAC Executive Director, Kelly O'Brien, along with Connector Project Manager, Ed Zotti gave a presentation titled: "Connector Transitway Initiative: Investing in Chicago's Future." O'Brien provided an overview of the CCAC and how it decided to champion this effort and Zotti explained the data supporting the need for the Connector Initiative. O’Brien and Zotti reinforced that while financing options are explored, what is most time sensitive is a commitment to preserve the Carroll Avenue Right of Way (ROW). The Carroll Avenue (ROW) is a key element and will lead the charge for the Connector.

For more information on this presentation or the Connector Initiative, please contact Executive Director, Kelly O’Brien at kobrien@ccac.org

Membership Tier for Next Generation of Civic Leaders & Highlights of First Quarter Young Leader Event

(L:R) Greg Hummel, Partner, Bryan Cave LLP; Sarah Burke, Director of Government Affairs, Northwestern Memorial Hospital; Alderman Brian Hopkins, City of Chicago, 2nd Ward; Curt Bailey, President, Related Midwest; and Gail Spreen, President, Streeterville Properties

The first quarter Young Leader event held on Tuesday, March 7th at the luxurious Related Midwest property located at 500 N. Lakeshore, included a roundtable discussion on "Streeterville In Focus: Future Development and Neighborhood Change." This roundtable discussion featured some of the most influential players in transforming the Streeterville neighborhood such as Alderman Brian Hopkins, 2nd Ward, City of Chicago; Curt Bailey, President, Related Midwest; Sarah Burke, Director of External Affairs, Northwestern Memorial Hospital; and Gail Spreen, Owner of Streeterville Properties and Past President of S.O.A.R. CCAC sponsored a "Happy Hour" networking reception proceeding the discussion.

Gail Spreen provided a history on Streeterville including the five different stages starting from Captain George Streeter founding the area, to being the shipping/industrial area in the world to being one of the most up and coming neighborhoods in Chicago. 

Curt Bailey discussed Related Midwest's developments in the area including One Bennett Park, 500 N. Lakeshore Drive, 840 North Lakeshore Drive, 400 N. Lakeshore Drive, OneEleven, 340 On the Park, and Park Tower. These properties are a combination of luxury rental properties and mixed use/destination developments.

Sarah Burke provided insight on the institutional growth in the neighborhood from the perspective of Northwestern Hospital. Northwestern Hospital ranks in the top 10 academic medical centers in the country, the number one hospital in the state of Illinois and has been a staple for many years in the Streeterville Area. Northwestern Health System has over 180 real estate sites across 12 counties and 69 zip codes throughout the state of Illinois.

Alderman Brian Hopkins outlined the community process and working with both the constituents and elected officials in City Hall regarding development in Streeterville. Being a resident of Streeterville and former President of S.O.A.R, he explained the lines of synergy that are being formed so that developers like Related Midwest create projects that truly benefit the Streeterville Area.

The CCAC Young Leader Executive Team would like to thank everyone for their participation in the March 7th Event. Stay tuned for more information regarding upcoming Young Leader programming.

Last year's launch of the CCAC Young Leaders Tier was very successful and we are continuing this initiative in 2017. Our new 14 member Young Leader Executive Team is gearing up for a very eventful year. As you know, this initiative is geared toward young professionals, and includes dynamic programming and networking opportunities for Chicago’s next generation of leaders. Through its Young Leader initiative, CCAC is aiming to ensure that Chicago’s future continues to have thoughtful and civic-minded leaders to meet the future demands of a world-class city.

Young Leaders with firms that are CCAC Members are automatically included and welcome to attend. Non-firm/Individual Young Leader Membership is $1,000.00 annually.   To download the flyer please click on it for a version to distribute.

Federal Reserve Bank of Chicago

The Fifth Annual Summit on Regional Competitiveness is set for October 16, 2017 at the Federal Reserve Bank of Chicago. For more information, please contact Executive Director, Kelly O'Brien at kobrien@ccac.org. 

Thank You For Your Continued Membership 

CCAC remains committed to being at the forefront of creating the City’s identity, shaping the vision of a global destination and helping to set the right priorities to attract broad based investment. Your continued membership allows your voice to be heard.  Getting involved provides a unique opportunity to give back to the City you call home based on your professional expertise.  Your talents will help shape our tomorrow. 2017 membership invoices have been mailed and sent via e-mail. If you have any questions, please contact Executive Director, Kelly O'Brien at kobrien@ccac.org, (312) 602-5148.

Do You Have A Facebook Page? A Twitter Account? A LinkedIn Page? Connect with CCAC!

CCAC is active on social media including Twitter, LinkedIn, and Facebook. Please follow us on Twitter with our username @ChicagoCCAC or click the link below to be directed to our page. Please search for us on LinkedIn or Facebook under the Chicago Central Area Committee! Follow us!