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HomeMy WebLinkAboutAgenda - 06-21-2022; 8-q - Funding Agreement Between Orange County and Alliance Health 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 21, 2022 Action Agenda Item No. 8-q SUBJECT: Funding Agreement Between Orange County and Alliance Health DEPARTMENT: County Manager's Office ATTACHMENT(S): INFORMATION CONTACT: Alliance Funding Agreement Travis Myren, Deputy Manager, (919) 245-2300 Nancy Coston, Social Services Director, (919) 245-2800 PURPOSE: To consider approving a funding agreement between Orange County and Alliance Health for the management of certain contracts funded through the required Maintenance of Effort (MOE) and County outside agency funds. The County anticipates this agreement streamlining some of the contract work with these agencies and promotes using existing Medicaid or state funds for appropriate mental health services before using County funds. BACKGROUND: The Manager's Recommended FY 2022-23 Budget provides $897,045 for Alliance Health to manage certain identified contracts that comprise part of the County's MOE commitment. Each County is required to provide MOE funding and can either provide funds to the local management entity/managed care organization (LME/MCO) or spend these funds directly. Orange County Alliance Health is now the LME/MCO for Orange County and has agreed to provide this service for next fiscal year. In addition to the MOE funds, Alliance will also manage outside agency funds for these entities. Through this agreement, Orange County will still designate the amounts paid to the identified contractors and will work with Alliance on performance expectations. Orange County will directly manage the remaining MOE funds ($458,929), supporting services in four County departments: Criminal Justice Resource, Health, Housing, and Social Services. The attached agreement delineates the roles of Alliance Health and Orange County, and specifies the organizations to receive funds and the amounts of these allocations (pending approval of FY 2022-23 budget). Alliance Health, after receipt of the required documentation (including fiscal and performance data), will make payments to providers. Orange County will reimburse Alliance Health for these approved payments and pay 2% of the total amount to cover administrative costs. FINANCIAL IMPACT: The funds for this agreement are included in the Manager's Recommended FY 2022-23 Budget in mental health maintenance of effort and outside agencies. 2 Orange County is required to budget $1,355,974 in mental health maintenance effort, although the County can decide to either spend funds directly or provide funds to the local mental health organization (Alliance Health) to provide these services. 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. 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 funding agreement with Alliance Health for$1,164,848 ($897,045 in MOE and $267,803 in outside agency funds), authorize the Chair to sign the agreement, and authorize the County Manager to approve changes or amendments to the agreement during FY 2022-23. 3 FY23 FUNDING AGREEMENT BETWEEN ORANGE COUNTY AND ALLIANCE HEALTH THIS AGREEMENT is made and entered into this 1" day of July 2022, by and between the COUNTY OF ORANGE (hereinafter referred to as the "County") and ALLIANCE HEALTH, a political subdivision of the state of North Carolina and a Local Management Entity / Managed Care Organization (LME/MCO) as that terms defined in NCGS 122C-3 (hereinafter referred to as the "Alliance"). WITNESSETH: WHEREAS, since December 1, 2021, Alliance has been the LME/MCO serving Orange County, managing Medicaid and behavioral health services for the uninsured individuals in the County, and WHEREAS, the County and Alliance desire to enter into this Agreement to set forth the parties' rights and obligations to manage county-funded mental health, intellectual/developmental disabilities and substance use services (MH/I-DD/SUS)provided to residents of Orange County and other matters related to the provision of behavioral health services. NOW THEREFORE, for and in consideration of mutual covenants herein and the mutual benefits to result therefrom,the parties hereby agree as follows: 1. TERM. This Agreement will take effect on the 1st day of July, 2022 and shall continue through and until June 30,2023. 2. SERVICES. In consideration of the Annual Allocation and other good and valuable consideration agreed to herein, Alliance shall manage the provision of high quality, cost-effective MH/DD/SUS services to residents of Orange County to the extent that other first or third-party payor sources such as Medicaid, Medicare,private pay, insurance, or grant funding are not available,have been denied or exhausted, or State funding is not allocated by Alliance. Alliance shall adhere to the requirements of Chapter 122C of the North Carolina General Statutes and any other applicable local, state, or federal laws, rules and regulations. Alliance shall adhere to the terms and conditions of this Agreement and effect such policies, procedures, and actions as are reasonably required to carry out the terms and conditions of this Agreement. 3. ANNUAL ALLOCATION. Pursuant to N.C.G.S. 122C-115, the County agrees to pay to Alliance an Annual Allocation of One Million One Hundred Sixty-Four Thousand Eight Hundred Forty Eight Dollars ($1,164,848.00). Alliance may use up to 2% of the Annual Allocation to cover administrative costs associated with administering the obligations set forth herein. The remainder of the funding shall be used exclusively for the provision of MH/DD/SUS services to eligible Orange County residents served by Alliance based on the Budget attached hereto as Attachment A. The County shall pay to Alliance three quarterly payments through a wire transfer an amount equal to one-quarter of the Annual Allocation beginning on July 2, 2022, and quarterly thereafter on September 2, 2022 and January 2, 2023. The fourth quarter payment will be made based on receipt of a final invoice from Alliance. The invoice will include final payments made to Providers for service dates within the Term of this current Funding Agreement (July 1, 2022 through June 30, 2023). Invoice shall be received by August 15, 2023. 1 4 4. WAIVER: The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a future waiver of the term or deprive that parry of its right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any waiver must be in writing, and no waiver of any breach of any provision of this Agreement shall constitute a waiver of any other breach of such provision or of any other provision thereof. 5. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement among the Parties as of the date hereof with respect to the subject matter hereof and cannot be amended or terminated orally. 6. NO THIRD-PARTY BENEFICIARIES: This Agreement is not intended for the benefit of any third party. The rights and obligations contained herein belong exclusively to the parties hereto and shall not confer any rights or remedies upon any person or entity other than the parties hereto. 7. SEVERABILITY: The Parties agree that if any provision of this Agreement, or portion thereof, shall be adjudged by any court of competent jurisdiction to be invalid or unenforceable for any reason, such determination shall be confined to the operation of the provision at issue and shall not affect or invalidate any other provision of this Agreement, and such court shall be empowered to substitute, to the extent enforceable, a provision similar thereto or other provisions so as to provide to the fullest extent permitted by applicable law the benefits intended by such provisions. 8. PARAGRAPH HEADINGS: Paragraph headings contained in this Agreement are included for convenience only and do not define, limit, or describe the scope of intent of this Agreement or in any way affect this Agreement. 9. APPLICABLE LAW: This Contract shall be governed by and in accordance with the laws of the State of North Carolina. All actions relating in any way to this Contract shall be brought in the General Court of Justice in the County of Orange and the State of North Carolina. 10. EXECUTION: The Parties agree to execute all documents, instruments, or further assurances as may be necessary or required to effectuate and complete all transactions contemplated by this Agreement. 11. SURVIVAL: Survival of the representations, warranties, and indemnifications made by any party to this Agreement shall survive the establishment of the new Area Authority. The representations, warranties, and indemnifications hereunder shall not be affected or diminished by any investigation at any time by or on behalf of the part for whose benefit the warranties and representations were made. For purposes of this paragraph, the contract shall be construed as a continuing contract so as to bind future boards to the extent permitted by law. 12. ASSIGNMENT: This Agreement shall not be assigned, in whole or in part, without the prior written consent of the Parties. 13. NOTICE: Any and all notices, designations, consents, offers, acceptances, or any other communications provided for herein shall be given in writing by registered or certified mail, return receipt requested,to the respective Parties at the addresses listed below,unless each party has notified the others of a different address by means of the notification formalities described in this paragraph. If to Alliance Health: Attention: Robert Robinson, CEO 5200 West Paramount Parkway Suite 200 Morrisville,North Carolina 27560 2 5 If to Orange County: Attention:NEED INFO HERE xxx Hillsborough,North Carolina 27278 15. COMPLIANCE WITH LAWS: Alliance represents that it is in compliance with all Federal, State, and local laws, regulations or orders, as amended or supplemented. The implementation of this Contract shall be carried out in strict compliance with all Federal, State, and local laws. 16. AUDIT RIGHTS: For all Services being provided hereunder, County shall have the right to inspect, examine, and make copies of any and all books, accounts, invoices, records and other writings relating to the performance of the Services identified in this contract. Audits shall take place at times and locations mutually agreed upon by both parties. Notwithstanding the foregoing, Alliance must make the materials to be audited available within two(2)weeks of the request for them. To the extent that any records constitute "protected health information" as that term is defined by the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"), it is the intent of this Section to allow the County to only receive the minimum necessary information in de-identified and/or aggregated form only for the purpose of evaluating financial and reporting requirements under this Agreement. Costs of any audit or review conducted under the authority of this section are the responsibility of the County unless a material breach by Alliance is detected, in which case the breaching party shall be responsible for the reasonable costs of the audit or review. 17. COUNTY NOT RESPONSIBLE FOR EXPENSES: County shall not be liable to Alliance for any expenses paid or incurred by Alliance,unless otherwise agreed in writing. 18. EQUIPMENT: Alliance shall supply, at its sole expense, all equipment, tools, materials, and/or supplies required to provide Services hereunder,unless otherwise agreed in writing. [Remainder of page left Blank, Signatures to follow] 3 6 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be signed on the day and year first above written,in their respective names by their proper officials by authority duly given by their respective governing bodies. COUNTY OF ORANGE Bonnie B. Hammersley Date This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. ORANGE COUNTY FINANCE OFFICER Date ALLIANCE HEALTH Robert Robinson, CEO or Designee Date 4 7 Attachment A Alliance Health-FY23 Orange County Budget HOE Funding PrograinlSei--ice FY23 Provider Volunteer Caordinatian $ 33,320 Arc of Orange County(The) Treatment Sen-icesiLanguage Interpretation $ 27,600 Art Therapy Institute Child Mental Health Sen-ices $ 15,000 Chapel Hill Training Outreach Project;Inc. PSR Services $ 163,000 Club No-,-a Community,Inc_ Orange County Crisis Services $ 230.499 Freedom House Youth Focused Services $ 19.000 Ha,,en House Orange County Apartments $ 35,100 New Destinations,Inc_ Inpatient Services $ 31.374 UNC Dept. of Psychiatry Outpatient Services $ 261,450 UNC Dept_ of Psychiatry Outpatient Services $ 22,200 El Futuro Flex Funds $ 35.662 To be identified by Orange County Subtotal $ 874,205 Outside Agcncr Funding Program/Service FY23 Provider Volunteer Coordination $ 5,625 Arc of Orange County(The) PSR Services $ 18,750 Club Nara Community,Inc. Outpatient Services $ 48,906 El Futuro Orange County Crisis Services $ 50,178 Freedom House Outpatient Services $ 72,000 KidSCope Art Therapy $ 5,000 Art Therapy Institute Music Therapy $ 10,000 Voices Together EmploNment and Sen-ices $ 57,344 OE Enterprises Subtotal $ 267,803 Administrative Support $ 22,840 Grand Total $ 1,164,848 Orange County Approved Budget $ S97,045 MOE funds $ 267,803 Total $ 1,164,848 5 8 Alliance Health-FY23 Orange MOE Funding Program/Service FY23 Volunteer Coordination $ 33,320 Treatment Services/Language Interpretation $ 27,600 Child Mental Health Services $ 15,000 PSR Services $ 163,000 Orange County Crisis Services $ 230,499 Youth Focused Services $ 19,000 Orange County Apartments $ 35,100 Inpatient Services $ 31,374 Outpatient Services $ 261,450 Outpatient Services $ 22,200 Flex Funds $ 35,662 Administrative Support $ 22,840 Subtotal $ 897,045 Outside Agency Funding Program/Service FY23 Volunteer Coordination $ 5,625 PSR Services $ 18,750 Outpatient Services $ 48,906 Orange County Crisis Services $ 50,178 Outpatient Services $ 72,000 Art Therapy $ 5,000 Music Therapy $ 10,000 Employment and Services $ 57,344 Subtotal $ 267,803 Grand Total $ 1,164,848 Orange County Approved MOE Budget $ 897,045 Outside Agency Funds $ 267,803 Total $ 1,164,848 Difference $ (0) 9 Provider Arc of Orange County(The) Art Therapy Institute Chapel Hill Training Outreach Project, Inc. Club Nova Community,Inc. Freedom House Haven House New Destinations, Inc. UNC Dept. of Psychiatry UNC Dept. of Psychiatry El Futuro To be identified by Orange County Provider Arc of Orange County(The) Club Nova Community,Inc. El Futuro Freedom House KidSCope Art Therapy Institute Voices Together OE Enterprises