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Home My WebLink AboutOTHER-2026-043-Renewal of Health Services Agreement with Southern Health Partners for Medical Services at the Orange County Detention Center i Southern Health Partners March 19 , 2026 Sheriff Charles Blackwood Orange County Sheriff's Office 106 East Margaret Lane Hillsborough , NC 27278 Re : Health Services Agreement Dear Sheriff Blackwood : I hope this letter finds you well and pleased with the program of services at the Jail provided by Southern Health Partners ( SHP ) . I am writing to acknowledge annual pricing/terms for continuation of the inmate medical program for the July 2026 -2027 contract period . We continue to see unprecedented wage inflation and competition for skilled nursing staff, commonly contending with local hospitals , facilities and agencies offering wage rates far in excess of our site budgets . This is making it necessary for us to account for now- current costs of providing competitive salaries/benefit packages to keep good nurses and maintain contract staffing levels . Labor costs are one very substantial area of our operating budget , among many other ever- increasing costs of doing business in correctional care . Therefore , SHP will need a rate adjustment on the contract this year. Additionally, with many of our existing contracts , there is a need for restructuring along the same lines as how our newer contracts are priced considering the now- current industry standard , with certain service items covered by SHP for inclusion in the cost pool , rather than under the base fees . For Orange County's contract , there is a need to shift the cost of medically generated hazardous waste to the cost pool . Going forward under the new arrangement , the costs for this item 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 . Only if the annual cost pool limit is used up fully for any given contract period , then at that point SHP would 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 medically generated hazardous waste have run approximately a total of $ 440 . 00 over the last twelve months . Under this new structure , we can limit our annual increase to four percent (4 % ) on the base fee and per diem rate for the July 2026 -2027 period , making use of the cost pool to help offset an otherwise higher annual adjustment that would be needed to get all operating cost- items and expenses adequately accounted for under the site budget if we were to continue under the existing terms . Be assured we take into consideration site -specific circumstances in reviewing each customer contract individually before formulating renewal pricing . Despite being faced with rising costs , we absorb as much as we reasonably can in an effort to support minimal annual adjustments for customers . 2030 Hamilton Place Blvd, Ste . 1 40 Chattanooga , ( phone ) 423 . 553. 5645 (fax ) `A ,VSouthern Health Partners Sheriff Charles Blackwood Orange County Sheriff' s Office Page 2 March 19 , 2026 A summary of the renewal pricing and amended terms is listed below : Contract Period : July 1 , 2026 through June 30 , 2027 Annual increase on contract with change to move costs of medically generated hazardous waste to costpool : 4 % on the base fee and per diem rate Base annualized fee : $465 , 081096 $ 38 , 756 . 83 per month Per diem rate greater than 140 inmates : $ 1 . 82 $ 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 on or before May 19, 2026 either by email at Jeanette . rod riquez(asouthern health 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 . 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 . If you would like to discuss any aspects of our services or have any questions , then please feel free to reach out to me at any time by email at Jeanette . rodriquez(aDsouthernhealth partners . com or by telephone at 423-553 -5635 , ext . 922 , and I would be happy to assist . Sincerely , SOUTHERN HEALTH PARTNERS , INC . ORANGE COUNTY , NC BY : Jeanette Rodriguez Contracts Administrator cc : Chief Deputy Tina Sykes Jennifer Galassi , Legal Advisor 2030 Hamilton Place Blvd, Ste . 1 40