Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  23-001029

 

MEETING DATE:

02/27/24

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

1, 2, 3, 4

SUBMITTING Agency/Department:

Health Care Agency   (Approved)

Department contact person(s):

Annette Mugrditchian (714) 834-5026 

 

 

Veronica Kelley (714) 834-7024

 

 

Subject:  Amendments and Contracts for Adult Residential Drug Medi-Cal Treatment Services

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost:   $900,000

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:     See Financial Impact Section

County Audit in last 3 years: No

   Levine Act Review Completed: Yes

 

    Prior Board Action:         5/23/2023 #15, 5/24/2022 #33, 5/11/2021 #18, 12/15/2020 #16

 

RECOMMENDED ACTION(S):

 

 

1.

Approve Amendment No. 8 to the Master Contract with various providers for the provision of Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services, increasing aggregate amount not to exceed by $900,000, effective March 1, 2024, through June 30, 2024, for a revised aggregate cumulative amount not to exceed $41,329,045.

 

 

2.

Approve Amendment No. 9 to the individual Contract with G & C Swan Inc. for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services, effective upon March 1, 2024, through June 30, 2024.

 

 

3.

Approve Amendment No. 7 to the individual Contract with Hope House Corporation for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services, effective March 1, 2024, through June 30, 2024.

 

 

4.

Approve Amendment No. 2 to the individual Contract with Phoenix House Orange County, Inc. for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services, effective March 1, 2024, through, June 30, 2024.

 

 

5.

Approve Amendment No. 11 to the individual Contract with Straight Talk Clinic, Inc. for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services, effective March 1, 2024, through June 30, 2024.

 

 

6.

Approve Amendment No. 8 to the individual Contract with The Teen Project, Inc. for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services, effective March 1, 2024, through June 30, 2024.

 

 

7.

Approve Amendment No. 9 to the individual Contract with Woodglen Recovery Junction, Inc. for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services, effective March 1, 2024, through June 30, 2024.

 

 

8.

Approve the selection of and individual Contracts with Cactus Gardens Opportunity House, Inc. and Sober Solutions under existing Master Contract for provision of Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services, for the term of April 1, 2024, through June 30, 2024.

 

 

9.

Authorize the County Procurement Officer or Deputized designee to execute Amendment No. 8 to the Master Contract and the individual Amendments with G & C Swan, Inc., Hope House Corporation, Phoenix House Orange County, Inc., Straight Talk Clinic, Inc., The Teen Project, Inc. and Woodglen Recovery Junction, Inc., and execute the individual Contracts with Cactus Gardens Opportunity House, Inc. and Sober Solutions, as referenced in the Recommended Actions above.

 

 

 

 

SUMMARY:

 

Approval of the selection of and individual Contracts with Cactus Gardens Opportunity House, Inc. and Sober Solutions, and the individual Amendments for the provision of Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services will increase options for Orange County adults seeking residential treatment services.

 

 

 

BACKGROUND INFORMATION:

 

On May 21, 2019, your Honorable Board of Supervisors (Board) approved the Master Contract with various providers for the provision of Adult Residential Drug Medi-Cal (DMC) Substance Use Disorder (SUD) Treatment Services and the below additional actions have been executed pursuant to appropriate authorities. Amendments 1, 2 and 7 to the Master Contract for administrative revisions were executed under Deputy Purchasing Agent (DPA) delegated authority. Providers under this Master Contract are paid through a combination of negotiated rates and actual costs, which draw down from an aggregate not-to-exceed amount. Prior to contract expiration, the Health Care Agency (HCA) plans to issue a solicitation to continue services. The Orange County Preference Policy is not applicable to the Master Contract.


 

 

Board Date

Contract/Amendment

Action

Term

May 21, 2019

Master Contract and Individual Contracts

Board Approved Master Contract with Straight Talk Clinic, Inc. and Woodglen Recovery Junction, Inc.

July 1, 2019 – June 30, 2022

 

September 24, 2019

Contract

Board Approved Individual Contract with The Teen Project, Inc.

October 1, 2019 – June 30, 2022

 

 

January 28, 2020

Contract

Board Approved Individual Contract with G & C Swan, Inc.

March 1, 2020 – June 30, 2022

 

 

May 5, 2020

Contract

Board Approved Individual Contracts with Clean Path Recovery, LLC and Hope House Corporation

July 1, 2020 – June 30, 2022

 

 

December 15, 2020

Contract

Board Approved Individual Contract with Coastal Addiction Center, Inc.

February 1, 2021 – June 30, 2022

May 11, 2021

Amendment No. 4 to Master Contract

Board Approved Contract Increase

July 1, 2021 – June 30, 2022

May 24, 2022

Amendment No. 5 to Master Contract

 

Board Approved Term Renewal and Contract Increase

July 1, 2022 – June 30, 2024

May 23, 2023

Amendment No. 6 to Master Contract

Board Approved Contract Increase and Approval of Individual Contracts with Phoenix House Orange County, Inc. and Spencer Recovery Centers Inc.

July 1, 2023 – June 30, 2024

 

On June 7, 2022, the HCA released a Request for Applications (RFA) seeking additional, qualified DMC organizations to provide SUD treatment services for adults. Cactus Gardens Opportunity House, Inc. (Cactus Gardens) and Sober Solutions submitted applications and were deemed responsive. Reference letters for Cactus Gardens were completed by Recover Well, Inc., Laurel Healing Center and PH Wellness with positive reports. Reference letters for Sober Solutions were completed by Rapid Revenue Recovery, Northcutt Consulting Services, LLC and The Catholic Worker with positive reports. Additional funding of $900,000 is being added to the Master Contract in order to accommodate the two new providers. Existing providers will be required to sign individual amendments for the Master Contract increase.

 

The six proposed Amendments with the current six Contract providers and selection of two new providers are to ensure that the HCA is in compliance with the California Department of Health Care Services (DHCS) for the delivery of DMC, Organized Delivery System (ODS) services and the Substance Use Prevention Treatment, and Recovery Services Block Grant guidelines and standards for delivering non-DMC services.

 

Scope of Services

The goal of Adult Residential DMC SUD Treatment Services is to provide residential treatment to adults 18 years and older who have a substance use diagnosis and meet the American Society of Addiction Medicine criteria. Clients are referred from the Beneficiary Access Line, OC Links, the Assessment and Referral to Treatment Team (ART), or from the clinics where they are currently receiving services. All clients have an assessment and must be authorized to receive this level of service. Providers must transition clients to the appropriate level of care as medical necessity dictates.

 

In the residential treatment environment, there is a daily regimen of structured activities that are intended to build positive behavioral patterns within a community. Residential Treatment Services provide client-centered treatment, which is based on mutually agreed upon goals/objectives between the clinician and client. Services include intake, treatment planning, individual and group counseling, educational sessions, collateral services, relapse prevention and case management. Common issues that are addressed at the beginning of treatment include: planning and preparing for housing, a safe living environment, education, and employment so clients have a specific plan at the time of discharge. With the addition of the two new providers, HCA will have the capacity for 182 licensed beds that will be utilized.

 

Performance Outcomes

Program performance is assessed through two measures: At least 70 percent exit the program making satisfactory progress (i.e., Completion Rate) and at least 30 percent of those who exit the program attend at least one treatment service within 30 days of exiting the program (i.e., Linkage Rate). The linkage rate target was met during both reporting periods and there has been an increase in successful completions during the first quarter of FY 2023-24. No vendor fell substantially under the average. HCA will continue to monitor target rate trends as additional years of data are analyzed and identify strategies to help clients successfully complete residential treatment services. The table below represents the average for all providers for the 2022-23 Fiscal Year as well as Fiscal Year 2023-24 through October 2023. 

 

 

Goals for Providers

FY 2022-23

FY 2023-24

Through October 2023

Completion Rates

>70%

64%

67%

Linkage Rates

>30%

60%

55%

 

These contracts, due to the nature of the services, could require the addition of subcontractors. In order to add subcontractor(s) to the contract, the Contractor must seek express consent from HCA. Should the addition of a subcontractor affect the scope of work and/or contract amount, HCA will bring the item back to the Board of Supervisors for approval. See Attachment J for the Contract Summary Form.

 

HCA has developed a Good Neighbor Policy that is included in Residential Program contracts wherein Contractors provide services to County residents and the services may have a potential impact on the surrounding neighborhood(s) including but not limited to environment, safety and congregation. HCA has not received any negative feedback from the community and will continue to work with Contractors and the community to ensure positive community relations.


 

 

Contractor

Facility Location

Cactus Gardens

Garden Grove

G & C Swan, Inc.

Colton, Upland

Hope House Corporation

Anaheim

Phoenix House Orange County, Inc.

Santa Ana

Sober Solutions

Huntington Beach

Straight Talk Clinic, Inc.

Santa Ana

The Teen Project, Inc.

Trabuco Canyon

Woodglen Recovery Junction, Inc.

Fullerton

 

HCA requests that the Board approve the Amendments with G & C Swan, Inc., Hope House Corporation, Phoenix House Orange County, Inc., Straight Talk Clinic, Inc., The Teen Project, Inc. and Woodglen Recovery Junction, Inc. and the individual Contracts with Cactus Gardens and Sober Solutions for the provision of Adult Residential DMC SUD Treatment Services, as referenced in the Recommended Actions.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for these Contracts are included in Budget Control 042 FY 2023-24 Budget.

 

The Contracts include provisions allowing HCA to terminate the Contract, reduce the level of services, and/or renegotiate the levels of services provided, as necessary. This includes a notice that allows HCA adequate time to transition or terminate services to clients, if necessary.

 

Funding Sources:

 

Fed: 20% (Substance Use Prevention, Treatment, and Recovery Services Block Grant)

Fees/Other: 40% (Federal Financial Participation Drug Medi-Cal)

State: 40% (Drug Medi-Cal State, General Fund and Realignment)

 

 

 

 

STAFFING IMPACT:

 

N/A

 

 

 

ATTACHMENT(S):

 

Attachment A – Amendment No. 8 to Master Contract MA-042-20010248 for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services
Attachment B – Amendment No. 9 to Contract MA-042-20010248 for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services with G & C Swan, Inc.
Attachment C – Amendment No. 7 to Contract MA-042-20010248 for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services with Hope House Corporation
Attachment D – Amendment No. 2 to Contract MA-042-20010248 for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services with Phoenix House Orange County, Inc.
Attachment E – Amendment No. 11 to Contract MA-042-20010248 for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services with Straight Talk Clinic, Inc.
Attachment F – Amendment No. 8 to Contract MA-042-20010248 for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services with The Teen Project, Inc.
Attachment G – Amendment No. 9 to Contract MA-042-20010248 for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services with Woodglen Recovery Junction, Inc.
Attachment H – Contract MA-042-20010248 for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services with Cactus Gardens Opportunity House, Inc.
Attachment I - Contract MA-042-20010248 for Adult Residential Drug Medi-Cal Substance Use Disorder Treatment Services with Sober Solutions
Attachment J - Contract Summary Form
Attachment K – Redline to Attachment A 
Attachment L – Redline to Attachment B
Attachment M – Redline to Attachment C
Attachment N – Redline to Attachment D
Attachment O – Redline to Attachment E
Attachment P – Redline to Attachment F
Attachment Q – Redline to Attachment G