Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  23-000860

 

MEETING DATE:

05/21/24

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Health Care Agency   (Approved)

Department contact person(s):

Annette Mugrditchian (714) 834-5026 

 

 

Veronica Kelley (714) 834-7024

 

 

Subject:  Approve Master Contract for Adult and Perinatal Residential Treatment

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost:   N/A

Annual Cost: FY 2024-25 $13,000,000
FY 2025-26 $13,000,000
FY 2026-27 $13,000,000

 

 

 

    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:         2/27/2024 #25, 5/23/2023 #15, 5/24/2022 #33, 5/11/2021 #18

 

RECOMMENDED ACTION(S):

 

 

1.

Approve the Master Contract and individual contracts with various providers for the provision of Adult and Perinatal Residential Drug Medi-Cal Substance Use Disorder Treatment Services, effective July 1, 2024, through June 30, 2027, for an aggregate amount not to exceed $39,000,000, renewable for one additional two-year term.

 

 

2.

Pursuant to Contract Policy Manual Section 3.4-114, authorize County Procurement Officer or Deputized designee to exercise a contingency contract cost increase not to exceed $1,300,000, which is 10 percent of the contract amount for the first year of the contract, for the entire term of the contract, including renewals, and within the scope of work set forth in the contract. The use of the contingency contract cost increase is subject to approval requirements established by the County Procurement Officer. 

 

 

3.

Authorize the County Procurement Officer or Deputized designee to execute the Master Contract as referenced in the Recommended Actions and to execute individual contracts with various providers as needed throughout the term of the Master Contract without returning to the Board.

 

 

 

 

SUMMARY:

 

Approval of the Master Contract and individual contracts with various providers for the provision of Adult and Perinatal 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 and individual Contracts 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. On June 16, 2019, your Board approved the Master Contract and individual contract with Clean Path LLC for the provision of Perinatal DMC SUD Treatment Services. The current Master Contracts for Adult Residential DMC SUD Treatment Services and Perinatal DMC SUD Treatment Services expire on June 30, 2024. The Orange County Preference Policy is not applicable to the Master Contract.

 

All related prior actions are included in the table below:

 

Board Date

Contract/Amendment

Action

Term

May 21, 2019

Master Contract and Individual Contracts for Adult Residential DMC SUD Treatment Services

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

July 1, 2019, through June 30, 2022

 

July 16, 2019

Master Contract and Individual Contracts for Perinatal DMC SUD Treatment Services

Board Approved Master Contract and Individual Contact with Clean Path LLC

August 1, 2019, though June 30, 2022

September 24, 2019

Contract for Adult Residential DMC SUD Treatment Services

Board Approved Individual Contract with The Teen Project, Inc.

October 1, 2019, though June 30, 2022

 

January 28, 2020

Contract for Adult Residential DMC SUD Treatment Services

 

Contract for Perinatal DMC SUD Treatment Services

Board Approved Individual Contract with G & C Swan, Inc. DBA His House/New Creation

 

Board approved Individual Contract with The Teen Project, Inc.

March 1, 2020, through June 30, 2022

 

May 5, 2020

Contract for Adult Residential DMC SUD Treatment Services

 

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

July 1, 2020, through June 30, 2022

 

December 15, 2020

Contract for Adult Residential DMC SUD Treatment Services

 

Board Approved Individual Contract with Coastal Addiction Center, Inc.

February 1, 2021, through June 30, 2022

N/A

Amendments No. 1, 2, 3 to Master Contract for Adult Residential DMC SUD Treatment Services

 

Deputy Purchasing Agent (DPA) Delegated Authority Administrative Revisions to Common Terms and Definitions, Payments, Residential Levels of Care, Staffing, Contingency Increase, Budget Modification, Location Update

August 9, 2019, through June 30, 2022

 

N/A

Amendments No. 1, 2 to Master Contract for Perinatal DMC SUD Treatment Services

DPA Delegated Authority Administrative Revisions to Common Terms and Definitions, Payments, Residential Levels of Care, Staffing

October 17, 2019, through June 30, 2022

 

May 11, 2021

Amendment No. 4 to Master Contract for Adult Residential DMC SUD Treatment Services

 

Board Approved Contract Increase

 

 

July 1, 2022, through June 30, 2024

 

Amendment No. 3 to Master Contract for   Perinatal DMC SUD Treatment Services

Board Approved Amendment to modify Payment Method and Scope of Work Revisions

July 1, 2022, through June 30, 2024

May 24, 2022

Amendment No. 5 to Master Contract for Adult Residential DMC SUD Treatment Services

 

Board Approved Term Renewal and Contract Increase

 

 

 

July 1, 2022, through June 30, 2024

 

Amendment No. 4 to Master Contract for Adult Residential DMC SUD Treatment Services and Perinatal DMC SUD Treatment Services

 

Board Approved Term Renewal

July 1, 2022, through June 30, 2024

May 23, 2023

Amendment No. 6 to Master Contract for Adult Residential DMC SUD Treatment Services

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

July 1, 2023, through June 30, 2024

N/A

Amendment No. 7 to Master Contract for Adult Residential DMC SUD Treatment Services

DPA Delegated Authority Administrative Revisions to DHCS required Terms and Conditions and changes to Performance Measures

September 1, 2023, through June 30, 2024

February 27, 2024

Amendment No. 8 to Master Contract and Amendments for Adult Residential DMC SUD Treatment Services

 

Board Approved Contract Increase and Approval of Individuals Contracts with Cactus Gardens Opportunity House, Inc. DBA Recovery Beach and Sober Solutions

 

February 27, 2024, through June 30, 2024

 

April 1, 2024, through June 30, 2024

 


 

 

Request for Applications (RFA)

On February 7, 2024, the Health Care Agency (HCA) released a Request for Applications (RFA) seeking qualified DMC organizations to provide SUD treatment services for adults and perinatal. Beginning July 1, 2024, the SUD treatment services for adults and perinatal are combined into one master contract due to the overlap in services provided. Cactus Gardens Opportunity House, Inc. DBA Recovery Beach (Cactus Gardens), G & C Swan Inc. DBA His House/New Creation (G & C Swan),  Hope House Corporation, Phoenix House Orange County, Inc. (Phoenix House), Sober Solutions, Straight Talk Clinic, Inc. (Straight Talk), The Teen Project, Inc. (Teen Project), and Woodglen Recovery Junction, Inc. (Woodglen) submitted applications and were deemed responsive and qualified for Adult Residential DMC SUD Treatment and The Teen Project, Inc. was deemed responsive and qualified for Perinatal DMC SUD Treatment Services

 

HCA conducted due diligence on the applicants. Applicants’ reference checks were satisfactory and completed with the companies listed below regarding similar projects.

Applicant

Reference Company A

Reference Company B

Reference Company C

Cactus Gardens

Laurel Healing Center

PH Wellness   

Recover Well

G & C Swan  

Circa Behavioral Healthcare Solutions

Essential Psychiatric Services

Alignment Counseling

Hope House Corporation    

Woodglen

Strength and Resilience Family Counseling

The Villa Center Inc.

Phoenix House

County of Los Angeles Public Health, Substance Abuse Prevention and Control Bureau

San Bernardino County Behavioral Health Administration

YOR California

Sober Solutions

Rapid Revenue         Recovery        

Southland Lending Corporation

First Olympic Reality Inc

Straight Talk

Roque Center, Inc.

CareMeds Pharmacy, Inc.

Radiant Health Centers

Teen Project   

Orange County Probation

County of Los Angeles Public Health

McMillen Family Foundation

Woodglen

Project Hope Action Alliance Foundation  

 The Villa Center Inc.

Hope House Corporation

                                                           

Applicants 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.

 

Scope of Services

 

Adult Residential DMC SUD Treatment 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. Applicants must transition clients to the appropriate level of care as medical necessity dictates.  The average length of stay is 45 days. 

 

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.   

 

Perinatal DMC SUD Treatment Services

 

Perinatal DMC SUD Treatment residential programs serve women 18 years and older who are pregnant and/or parenting. Services are available to Orange County DMC beneficiaries.The average length of stay for perinatal women is 90 days or more postpartum. If determined to be medically necessary, perinatal clients may receive longer lengths of stay than those described above, in accordance with State perinatal guidelines. Applicants must transition clients to the appropriate level of care per DMC regulations.  

 

The program services are designed to motivate and encourage individuals with a SUD to seek and/or remain in treatment. Pregnant and parenting women with a SUD are at risk for harmful effects to both mother and child. Women have a unique set of needs that are often not addressed in traditional residential settings. Programming is gender-specific treatment and provides other therapeutic interventions for pregnant and parenting women to address such as issues of relationships, sexual and physical abuse and parenting. Children up to the age of 12 may reside with their mother as onsite childcare is provided, along with case management services that include doctor's visits for children and coordination with other services in the community. 

 

Performance Outcomes

 

Program performance is assessed through two measures: 1) at least 70 percent exit the program making satisfactory progress (i.e., Completion Rate) and 2) 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).

 

HCA has verified there are no concerns that must be addressed with respect to Contractors' ownership/name, litigation status or conflicts with County interests.

 

HCA has developed a Good Neighbor Policy that is included in Residential Program contracts wherein applicants 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 applicants and the community to ensure positive community relations.

 

Applicants

Facility Location

Cactus Gardens

Garden Grove

G & C Swan, Inc.

Colton, Upland

Hope House Corporation

Anaheim

Phoenix House

Santa Ana

Sober Solutions

Garden Grove

Straight Talk Clinic, Inc.

Santa Ana

Teen Project

Trabuco Canyon

Woodglen

Fullerton

 

HCA requests the authority to add new providers or locations without returning to the Board for approval as referenced in the Recommended Actions. Returning to the Board for approval of new providers may result in a delay that would compromise critical bed availability. The ability to add new, qualified providers is time sensitive due to the instability and needs of the at-risk population served under the Master Contract. 

 

HCA requests that the Board approve the Master Contract and Individual Contracts for the provision of Adult and Perinatal Residential DMC SUD Treatment Services as referenced in the Recommended Actions.

 

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 Provider must seek express consent from HCA. Should the addition of a subcontractor impact the scope of work and/or contract amount, HCA will bring the item back to the Board for approval. See Attachment J for the Contract Summary Form.

 

 

FINANCIAL IMPACT:

 

Appropriations for this Contract will be included in HCA Budget Control 042 FY 2024-25 Budget and will be included in the budgeting process for future years.

 

The proposed Contract includes 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 –Master Contract MA-042-24011190 for Adult and Perinatal Residential DMC SUD Treatment Services
Attachment B – Contract MA-042-24011190 for Adult and Perinatal Residential DMC SUD Treatment Services with Cactus Gardens Opportunity House, Inc., DBA Recovery Beach
Attachment C - Contract MA-24011190 for Adult and Perinatal Residential  DMC SUD Treatment Services with G & C Swan Inc. DBA His House/New Creation
Attachment D - Contract MA-042-24011190 for Adult and Perinatal Residential  DMC SUD Treatment Services with Hope House Corporation
Attachment E - Contract MA-042-24011190 for Adult and Perinatal Residential DMC SUD Treatment Services with Phoenix House Orange County, Inc.
Attachment F – Contract MA-042-24011190 for Adult and Perinatal Residential DMC SUD Treatment Services with Sober Solutions
Attachment G – Contract MA-042-24011190 for Adult and Perinatal Residential DMC SUD Treatment Services with Straight Talk Clinic, Inc. 
Attachment H – Contract MA-042-24011190 for Adult and Perinatal Residential DMC SUD Treatment Services with The Teen Project, Inc.
Attachment I – Contract MA-042-24011190 for Adult and Perinatal Residential DMC SUD Treatment Services with Woodglen Recovery Junction, Inc.
Attachment J - Contract Summary Forms