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Eligible Costs-Emergency Protective Measures

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-1602-DR
ApplicantNorth Broward Hospital District
Appeal TypeSecond
PA ID#011-UR14B-00
PW ID#985
Date Signed2011-10-06T04:00:00

Citation:        FEMA-1602-DR-FL, North Broward Hospital District, Emergency Protective Measures, Project Worksheet (PW) 985
Cross-
Reference:     Documentation
Summary: In anticipation of Hurricane Katrina, the Applicant increased its hospital staff to ensure uninterrupted service for patients and to provide childcare service for its employees.  The Applicant also detailed hospital staff to several area emergency shelters to support emergency sheltering operations.  FEMA prepared PW 985 to document emergency protective measures undertaken at four of the Applicant’s hospitals and at three area emergency shelters.  FEMA determined that costs totaling $408,167 for force account overtime and for childcare services were ineligible because the unscheduled overtime costs are considered an increased operating expense and the childcare costs were discretionary services provided by the Applicant.  On January 11, 2006, FEMA obligated PW 985 for $71,635 to pay for eligible costs, including emergency generator use at the hospitals, ambulance services at the shelters, and overtime hours associated with staffing the shelters.
In its first appeal submitted March 27, 2006, the Applicant stated that increasing hospital staff, as well as locking down its facilities, is required procedure within the Applicant’s medical centers and is necessary in order to provide uninterrupted patient care when anticipating an emergency situation.  It further stated that providing childcare for its employees was a necessary expense because schools were closed and many staff had children with no provision for their care.  On November 13, 2007, the Regional Administrator denied the appeal reiterating the initial determination that increased operating expenses, which consisted of unscheduled overtime and employee childcare, are ineligible in accordance with FEMA Response and Recovery Policy 9525.4, Medical Care and Evacuations.   
The Applicant submitted its second appeal on February 5, 2007, which the State transmitted to FEMA on March 2, 2007.  The Applicant reduced the amount of the second appeal from $408,167 to $15,697 for costs associated with hurricane activities.  
Issue:        Did the Applicant provide sufficient documentation to support its claim for reimbursement of eligible costs incurred?
Finding:      Yes.
Rationale:   44 CFR §206.2225, Emergency work 
 

Appeal Letter

October 6, 2011

 

Bryan Koon

Director

Florida Division of Emergency Management

2555 Shumard Oak Boulevard

Tallahassee, Florida 32399-2100

 

Re:  Second Appeal–North Broward Hospital District, PA ID 011-UR14B-00, Eligible Costs –  

       Emergency Protective Measures, FEMA-1602-DR-FL, Project Worksheet (PW) 985

Dear Mr. Koon:

This letter is in response to a letter from your office dated March 2, 2007, which transmitted the referenced second appeal on behalf of the North Broward Hospital District (Applicant).  Due to a FEMA administrative error, there was a delay in processing the second appeal.  The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) decision to deny $15,697 for costs related to Hurricane Katrina.

Background

The North Broward Hospital District consists of five hospitals that serve the northern two-thirds of Broward County: Broward General Medical Center, Coral Springs Medical Center, Chris Evert Children’s Hospital, Imperial Point Medical Center, and North Broward Medical Center.

In anticipation of Hurricane Katrina, the Applicant increased its hospital staff to ensure uninterrupted service for patients and to provide childcare service for its employees.  The Applicant also detailed hospital staff to several area emergency shelters to support emergency sheltering operations. 

FEMA prepared PW 985 to document emergency protective measures undertaken at four of the Applicant’s hospitals and at three area emergency shelters.  FEMA determined that costs for unscheduled overtime and for childcare services were ineligible.  This included the Broward General Medical Center ($199,992), North Broward Medical Center ($80,908), Imperial Point Medical Center ($39,403), and Coral Springs Medical Center ($87,864).  FEMA considered these expenses as increased operating costs because employees that remained at the hospitals performed normal duties and that the medical care provided was due to increased patient load.

FEMA also determined that childcare costs were discretionary services provided by the Applicant and are not eligible for reimbursement.  On January 11, 2006, PW 985 was obligated for $71,635 to pay for eligible costs, including emergency generator use at the hospitals, ambulance services at the shelters, and overtime hours associated with staffing the shelters.

First Appeal

In its first appeal submitted March 27, 2006, the Applicant stated that increasing hospital staff, as well as locking down its facilities, is required procedure within the Applicant’s medical centers and is necessary in order to provide uninterrupted patient care when anticipating an emergency situation.  It further stated that providing childcare for its employees was a necessary expense because schools were closed and many staff had children with no provision for their care.

On November 13, 2006, the Regional Administrator denied the appeal reiterating the initial determination that FEMA does not reimburse medical facilities for increased operating costs and discretionary services. The Regional Administrator explained that the Applicant’s costs did not meet the criteria of emergency protective measures in accordance with FEMA Response and Recovery Policy 9525.4, Medical Care and Evacuations (dated July 20, 2000), which stated that  “When medical facilities in a disaster area experience increased patient loads and operating costs, FEMA generally does not reimburse them for increased costs.”   

Second Appeal

The Applicant submitted its second appeal on February 5, 2007, which the State transmitted to FEMA on March 2, 2007.  The Applicant acknowledges that $392,470 it requested in the first appeal is not reimbursable under the Public Assistance Program and reduced the amount of the second appeal from $408,167 to $15,697 for costs associated with hurricane preparation and recovery activities.  The Applicant provided supporting documents including a “Summary of Appealed Emergency Work Expenses” and “Force Account Labor Summary Record.”

Discussion

The Applicant provided information in its second appeal, including a description of work listed on the summary statement and personnel labor records, that identifies activities related to emergency work the Applicant performed to protect its facilities as a result of Hurricane Katrina.  As such, the Applicant substantiated that the claimed costs were for emergency protective measures to protect the Applicant’s facilities in a declared major disaster and therefore eligible for funding.  However, the work related to managing incoming calls at the Imperial Point Medical Center facility are increased operating expenses which are not eligible for reimbursement.

Conclusion

I have reviewed the information submitted with the appeal and have determined that cost incurred for protecting the Applicant’s facilities are eligible emergency protective measures.  Therefore, I am partially approving the appeal in the amount of $15,303 for the costs of those eligible activities taken to protect the Applicant’s facilities.  By this letter, I am requesting the Regional Administrator take appropriate actions to implement my decision.

Please inform the Applicant of my decision.  This determination is the final decision on this matter pursuant to 44 CFR §206.206, Appeals.

Sincerely,

/s/

Deborah Ingram

Assistant Administrator

Recovery Directorate

cc:  Major P. May

       Regional Administrator

       FEMA Region IV