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Council Member Lee inquires about contract advance percentages for providers
0:32:06
·
34 sec
Council Member Linda Lee inquires about the standard percentage of advance for contracts with the Department of Health and Mental Hygiene. CFO Aaron Anderson explains that the advance percentage has increased from 25% to 50% for FY '26, which is expected to provide significant support to providers.
- Previously, the advance was 25%, increased to 30% last year
- For FY '26, a new citywide initiative will provide 50% upfront at the beginning of the year
- Council Member Lee acknowledges this change will be helpful for many providers
Linda Lee
0:32:06
Sorry.
0:32:06
Just really quickly piggybacking off that question.
0:32:09
Is there a standard percentage of advance that you guys have for your contracts?
0:32:12
Is it usually 25%, or does it vary based vary does the percentage vary based on the contract itself, the RFP?
Aaron Anderson
0:32:21
Thanks, Cherly.
0:32:22
So historically it was 25%, last year it was 30%.
0:32:26
This year across the city we're actually doing a new initiative where it's going be 50% upfront at the beginning of the year for FY '26.
0:32:33
So we think that's actually going be a huge support to providers from a cash
Justin Osorio
0:32:36
flow.
Linda Lee
0:32:36
No that'll actually be helpful for a lot of the providers, so that's good to know.