HomeMy WebLinkAboutAgenda 06-03-2025; 8-r - 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 3, 2025
Action Agenda
Item No. 8-r
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 February 27, Sheriff Charles S. Blackwood,
2025 for Contract Period July 1, 919.245.2900
2025—June 30, 2026 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 operational costs associated with
technology, infrastructure, and insurance products, leading to its decision to impose a four percent
(4%) increase on the base fee and per diem rate.
FINANCIAL IMPACT: Upon approval of the renewal, the monthly contract price will increase
$17,199.72 per year. The new contract price will be $447,194.16 annually ($37,266.18 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 $1.75 for each inmate over 140.
During the previous fiscal year, SHP restructured the contract 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, and the second tier is $140,000.
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
OBJECTIVE 4. Reduce impacts and barriers for justice-involved children and adults
through deflection, diversion, therapeutic interventions, and re-entry support, including
housing.
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RECOMMENDATION(S): The Manager recommends that the Board approve the 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
February 27, 2025
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 (SHP) values the partnership we have formed with Orange County and
looks forward to continuing this successful partnership for years to come.
After much deliberation, we have deemed it necessary to adjust our rates in order to meet
corresponding rising operational costs associated with the delivery of our program. For example,
evolving healthcare and correctional standards require ongoing training, enhanced protocols and
additional resources to which our regional office team are involved, and in turn assists our on-site
working team members. Then there are the costs of technology, infrastructure, and insurance
products that steadily escalate on an annual basis. We also want to keep our commitment to providing
the highest quality service, retaining the finest skilled medical professionals through competitive
wages and benefits in order to achieve positive outcomes for our patients. Beginning in the new
contract year effective July 1, 2025 there will be a four percent(4%) increase in the price of our inmate
healthcare services. This was a tough decision to make, and we understand how it affects our
customers. Therefore, we thank you in advance for your ongoing support and trust that these changes
will help us to continue providing the exceptional value of service you expect from us.
Below are the new rates effective for the 2025-2026 renewal period with a four percent (4%) increase
on the base fee and per diem rate.
Contract Period: July 1, 2025 through June 30, 2026
Base annualized fee: $447,194.16 $37,266.18 per month
Per diem greater than 140 inmates: $1.75
$60,000.00 (first tier);
Annual outside cost pool limits: $140,000.00 (second tier)
For the historical contract record and to confirm 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 or before May 23, 2025 by email at
Jeanette.rodriguez(a-_)southernhealth partners.com or by fax at 423-305-6964. If this letter is not
signed in a timely manner, then billing will be prorated back to the contract inception date.
Blvd,Ste.140
Chattanooga,TN 37421
423.553.5635 • • 423.553.5645
Southern Health 4
Partners
Sheriff Charles Blackwood
Orange County Sheriff's Office
Page 2
February 27, 2025
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.
As always we welcome you to share any questions or concerns you may have with us. Please don't
hesitate to contact me at 423-553-5635, ext. 922.
Sincerely,
SOUTHERN HEALTH PARTNERS, INC. ORANGE COUNTY, NC
BY:
Jeanette Rodriguez v O
Contracts Administrator
cc: Chief Deputy Tina Sykes
Jennifer Galassi, Legal Advisor
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