SFHSS CFO reports projected year‑end fund increase; pharmacy rebates drive part of surplus

Larry Liu, San Francisco Health Service System chief financial officer, presented the financial reports for SFHSS as of May 31, 2021 (eleven months into the fiscal year). Liu said the trust fund is projecting a fiscal‑year net increase of approximately $16.9 million and a projected year‑end fund balance of about $132.9 million.

Key figures Liu highlighted included a projected increase in the self‑funded plans of about $15.9 million (roughly half attributed to pharmacy rebates), of which $6.2 million has already been received; year‑to‑date performance guarantees collected totaled $319,000; and interest income is projected at about $1.1 million with $638,000 received to date. Liu said the general administrative budget is projected to be roughly neutral for the fiscal year, and that 77% of audit documentation requested by auditors had been produced.

Board follow‑up: Commissioners asked about audit timing and document readiness; Liu explained auditors typically begin after fiscal year close, but staff worked to provide earlier document requests to reduce operational burden during open enrollment. Board members also flagged pharmacy benefit managers and rebate transparency as an area for continued monitoring.

Context: Liu reminded the board that SFHSS manages both trust assets and plan administration; projections were made with 11 months of data and subject to minor change in the final month of the fiscal year. No formal action on budgeting was taken at the meeting.