HomeMy WebLinkAboutAgenda - 06-07-2022; 8-e - Renewal of Health Services Agreement with Southern Health Partners for Medical Services at the Orange County Detention Center 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 7, 2022
Action Agenda
Item No. 8-e
SUBJECT: Renewal of Health Services Agreement with Southern Health Partners for
Medical Services at the Orange County Detention Center
DEPARTMENT: Sheriff's Office
ATTACHMENT(S): INFORMATION CONTACT:
Renewal Letter Dated March 11, 2022 Sheriff Charles S. Blackwood,
for Contract Period July 1, 2022—June 919.245.2900
30, 2023 Jennifer Galassi, Legal Advisor to the
Sheriff, 919.245.2952
PURPOSE: To approve a renewal of the Health Services Agreement with Southern Health
Partners for medical services at the Orange County Detention Center.
BACKGROUND: Since 2009, the County has contracted with Southern Health Partners (SHP)
to provide a structured and comprehensive medical program for inmates housed in the Orange
County Detention Center (OCDC). SHP is experiencing rising costs associated with providing
competitive pay rates to staff and inflationary costs related to supply lines and core business
insurance.
FINANCIAL IMPACT: Upon approval of the renewal, the monthly contract price will increase
$18,572.28 per year ($1,547.69 per month). The new contract price, effective July 1, 2022, will
be $390,017.64 annually ($32,501.47 per month). If the average daily population (ADP) exceeds
140 inmates, the compensation payable to SHP shall be increased by a per diem rate of $1.52
for each inmate over 140.
Other financial obligations under the Agreement remain unchanged.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable
to this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic
background; age; military service; disability; and familial residential or economic status.
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
2
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang
activity, substance abuse and domestic violence.
ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal
impact associated with this item.
RECOMMENDATION(S): The Manager recommends that the Board approve the amendment
and renewal of the Health Services Agreement with Southern Health Partners for medical services
at the Orange County Detention Center; and authorize the Chair to sign on behalf of the Board.
Southern Health 3
Partners
March 11, 2022
Sheriff Charles Blackwood
Orange County Sheriff's Office
106 East Margaret Lane
Hillsborough, NC 27278
Re: Health Services Agreement
Dear Sheriff Blackwood:
Southern Health Partners values the long-standing partnership developed with Orange County and it is a privilege to
work with you and the Detention Center staff.
We work hard to keep the cost of our program at Orange County as low as reasonably possible. We do, however,
continue to experience rising costs associated with doing business and providing medical services, most remarkably
in the following areas:
• Pay rates — These have soared significantly in a highly competitive market due to the national nursing
shortage.
o Competitive pay rates-Given the current climate in the health care field we need to be competitive
in what we are paying staff and in providing an attractive employee benefits plan. This is crucial to
maintain the support and environment needed to promote staff stability in retaining good quality
team members.
o Unfavorable working shifts - The pay rates for night and weekend shifts are at a much greater
increased cost than for other favorable work shifts.
• Inflationary costs — Supply lines and core business insurance (professional liability, general liability) costs
have substantially escalated and outpaced our average operating expenses.
With these factors in mind, the new rates reflect an increase of$1,547.69 per month on the base fee and $0.07 on
the per diem for the 2022-2023 contract period.
Contract Period: July 1, 2022 through June 30, 2023
Base annualized fee: $390,017.64 ($32,501.47 per month)
Per diem greater than 140: $1.52
Annual outside cost pool limits: $60,000.00 (first tier); $140,000.00 (second tier)
For the historical contract record and to confirm the renewal of our original Health Services Agreement dated
August 18, 2009 with Orange County, I will ask you to keep this letter and return a si_pned copy to me on or
before April 29. 2022 by email geanette.rodriguez@southernhealthpartners.com) or by fax (423-305-6964). If
this letter is not signed in a timely manner, then billing will be prorated back to the contract inception date.
Except as modified above, or as may be further amended or modified by mutual agreement between the parties, all
provisions of the contract will remain in full force and effect during the renewal period.
Please call me at 423-553-5635, ext. 922 with any questions or concerns. We appreciate your understanding and
investment in working with SHP to deliver a program of high-quality patient care services for Orange County.
Sincerely,
SOUTHERN HEALTH PARTNERS, INC. ORANGE COUNTY, NC
BY:
Jeanette Rodriguez
Contracts Administrator
2030 Hamilton - . . Ste.140
Chattanooga,