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HomeMy WebLinkAboutAgenda - 12-10-2024; 8-f - 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: December 10, 2024 Action Agenda Item No. 8-f 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 October 29, 2024 Sheriff Charles S. Blackwood, for Contract Period July 1, 2024 919.245.2900 through June 30, 2025 Jennifer Galassi, Legal Advisor to the Sheriff, 919.245.2952 PURPOSE: To approve a one-year 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, employee benefits, and other lines of insurance coverage. FINANCIAL IMPACT: Upon approval of the renewal, the monthly contract price will increase $13,650.64 per year. The new contract price will be $423,169.12 annually ($35,264.09, on average over the 12-month period, 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 $1.60 for each inmate over 140. To bring this contract in line with now-current industry standards, SHP restructured it to shift the costs of medical supplies, over-the-counter medications, and labs, applying them toward the cost pool accounting totals to accrue against the annual pool limitation. If these costs were to exceed the annual cost pool limit, SHP would seek reimbursement from the County for the excess amount. The first tier of the annual outside cost pool is $60,000, while the costs for medical supplies, over- the-counter medications, and labs were $4,150 over the last twelve months. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 1. Improve harm reduction, prevention, and support services for adults and children experiencing behavioral health issues, substance use disorder, and intellectual or developmental disability. 2 OBJECTIVE 4. Reduce impacts and barriers for justice-involved children and adults through deflection, diversion, therapeutic interventions, and re-entry support, including housing. RECOMMENDATION(S): The Manager recommends that the Board approve the one-year 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 s Partners October 29, 2024 Chief Deputy Tina Sykes Orange County Sheriff's Office 106 East Margaret Lane Hillsborough, NC 27278 Re: Health Services Agreement Dear Chief Deputy Sykes: Southern Health Partners (SHP) has been proudly partnering with Orange County for 15 years. We value our relationship with you and Orange County as a customer and are happy to collaborate with you on the cost of our program. We would like to thank you for taking the time to meet with SHP representatives, Wes Williamson and Litchard Hurley, to discuss the contract and SHP's offer to renew our contract with Orange County for the 2024-2025 period based on the following terms: 1. No change in rates under the existing contract terms for a period of four(4) months from July 1, 2024 through October 31, 2024. 2. 5% increase on the base fee rate and the per diem rate for the remaining eight (8) months of the 2024-2025 contract period,from November 1, 2024 through June 30, 2025.This rate increase will help especially in the area of staffing as we've had to keep up with the current trend in nursing pay rates. We want you to be assured of our ongoing commitment to providing the best care and services for inmates at the Jail, by retaining quality staff members, as they are an investment in building a team that will have a favorable impact on the culture of the program. A major part of our operating budget consists of staffing but it is only a single component. The professional liability insurance is another single example of an expenditure we have truly little control over our cost increases, which continue to soar along with other costs of operating such as employee benefits and other lines of insurance coverage. 3. Effective November 1,2024,there will be a change to move the costs of medical supplies,over- the-counter medications and labs to the cost pool. With many of our older contracts, there is a need for restructuring along the same lines as how our newer contracts are priced considering the now-current industry standard. That is, with certain service items covered by SHP for inclusion in the cost pool, rather than under the base fees. For Orange County, NC's contract, we will need to shift the costs of medical supplies,over-the-counter medications and labs to the cost pool. Going forward under the new arrangement, the costs for medical supplies, over-the-counter medications and labs will still be paid for by SHP (with the County continuing to receive the benefit of SHP's bulk pricing discounts from our various vendors), but the amounts will be applied toward the cost pool accounting totals to accrue against the annual pool limitation. If the County were to exceed the annual cost pool limit for any given contract period,then SHP would, at that point, begin to seek reimbursement from the County for any costs in excess of the cost pool limit, as is done under our current normal practice. Costs for medical supplies, over-the-counter medications and labs have run approximately a total of$4,150.00 over the last twelve months. The total base contract price payable to SHP will be $423,169.12 for the full 12-month contract period of July 1, 2024 through June 30, 2025. mnmm�_ 2030 Hamilton Place Blvd,Ste.140 Chattanooga, 423.553.5635(phone)423.553.5645 Southern Health 4 Partners Chief Deputy Tina Sykes Orange County Sheriff's Office Page 2 October 29, 2024 A summary of the schedule of rates and amended terms is listed below: July 1, 2024 through October 31, 2024 No increase on base fee and per diem rate for four 4 months Base fee for 4-monthperiod: $136,506.16 $34,126.54 per month Per diem greater than 140 inmates: $1.60 November 1, 2024 through June 30, 2025 5% increase on base fee and per diem rate for remaining eight (8) months with change to move costs of medical supplies, over-the-counter medications and labs to the cost pool Base fee for 8-month period with change to move costs of medical supplies, over the counter medications and labs to the cost pool: $286,662.96 $35,832.87 per month Per diem greater than 140 inmates: $1.68 For twelve 12 months for Period of: July 1, 2024 through June 30, 2025 �A_nnu­aloutside cost pool limits: 1 $60,000.00 (first tier); $140,000.00 (second tier) 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._For the historical contract record and to confirm acceptance of the rates and terms as outlined in this letter for the renewal of our Health Services Agreement with Orange County, I will ask you to keep this letter and return a signed copy to me at your earliest convenience, either by email at jeanette.rodriguez@southernhealthpartners.com or by direct confidential fax at 423-305-6964. Please feel free to reach out to me at 423-553-5635, ext. 922 with any questions or concerns and I'll be happy to provide any assistance.We appreciate the opportunity to continue our services at Orange County and look forward to hearing from you soon. Sincerely, SOUTHERN HEALTH PARTNERS, INC. ORANGE COUNTY, NC BY: �PiAr�Y1.P/t�l Pi Y�oG O' Jeanette Rodriguez Contracts Administrator Blvd,Ste.140 Chattanooga,TN 37421 423.553.5635 • • 423.553.5645