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Agenda Item
ASR
Control 22-000947 |
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MEETING
DATE: |
05/23/23 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
Health
Care Agency (Approved) |
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Department contact person(s): |
Annette
Mugrditchian (714) 834-5026 |
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Veronica
Kelley (714) 834-7024 |
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Subject: Amendments and Contracts for Adult
Residential Drug Medi-Cal Treatment Services
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement to Form |
Discussion |
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3
Votes Board Majority |
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Budgeted: N/A |
Current Year
Cost: N/A |
Annual Cost: FY 2023-24 $2,000,000 |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: No |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 5/24/2022 #33, 5/11/2021 #18,
12/15/2020 #16, 5/5/2020 #5 |
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RECOMMENDED
ACTION(S):
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1. |
Approve Amendment No. 6 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 $2,000,000 for the term of July 1, 2023, through June
30, 2024, for a revised aggregate cumulative total amount not to exceed
$40,429,045. |
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2. |
Approve Amendment No. 6 to the
individual Amendment with G & C Swan, Inc. for Adult Residential Drug
Medi-Cal Substance Use Disorder Treatment Services for the term of July 1,
2023, through June 30, 2024. |
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3. |
Approve Amendment No. 5 to the
individual Amendment with Hope House Corporation for Adult Residential Drug
Medi-Cal Substance Use Disorder Treatment Services for the term of July 1,
2023, through June 30, 2024. |
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4. |
Approve Amendment No. 8 to the
individual Amendment with Straight Talk Clinic, Inc. for Adult Residential
Drug Medi-Cal Substance Use Disorder Treatment Services for the term of July
1, 2023, through June 30, 2024. |
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5. |
Approve Amendment No. 6 to the
individual Amendment with The Teen Project, Inc. for Adult Residential Drug
Medi-Cal Substance Use Disorder Treatment Services for the term of July 1,
2023, through June 30, 2024. |
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6. |
Approve Amendment No. 6 to the individual
Amendment with Woodglen Recovery Junction, Inc. for Adult Residential Drug
Medi-Cal Substance Use Disorder Treatment Services for the term of July 1,
2023, through June 30, 2024. |
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7. |
Approve the selection of and individual
Contract with Phoenix House Orange County, Inc. under existing Master
Contract for provision of Adult Residential Drug Medi-Cal Substance Use
Disorder Treatment Services for the term of July 1, 2023, through June 30,
2024. |
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8. |
Approve the selection of and individual
Contract with Spencer Recovery Centers Inc. under existing Master Contract
for provision of Adult Residential Drug Medi-Cal Substance Use Disorder
Treatment Services for the term of July 1, 2023, through June 30, 2024. |
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9. |
Authorize the County Procurement Officer
or Deputized designee to execute the individual Amendments with G & C
Swan, Inc., Hope House Corporation, Straight Talk Clinic, Inc., The Teen
Project, Inc., and Woodglen Recovery Junction, Inc., and individual Contracts
with Phoenix House Orange County, Inc. and Spencer Recovery Centers Inc., as
referenced in the Recommended Actions above. |
SUMMARY:
Approval of the selection of and
individual Contracts with Phoenix House Orange County, Inc. and Spencer
Recovery Centers Inc. 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 and 2 to the Master Agreement for
administrative revisions were executed under Deputy Purchasing Agent (DPA)
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. The Orange County Preference Policy is not applicable to
the Master Contract.
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Board Date |
Contract/Amendment |
Action |
Term |
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May
21, 2019 |
Master Contract
and Individual Contracts |
Board
Approved Master Contract and Two Individual Contracts |
July
1, 2019 - June 30, 2022 |
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September
24, 2019 |
N/A |
Board
Approved Individual Contract with The Teen Project, Inc. |
October
1, 2019 - June 30, 2022 |
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January
28, 2020 |
N/A |
Board
Approved Individual Contract with G & C Swan, Inc. |
March
1, 2020 - June 30, 2022 |
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May
5, 2020 |
N/A |
Board
Approved Individual Contracts with Clean Path Recovery, LLC and Hope House
Corporation |
July
1, 2020 - June 30, 2022 |
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December
15, 2020 |
N/A |
Board
Approved Individual Contract with Coastal Addiction Center, Inc. |
February
1, 2021 - June 30, 2022 |
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May
11, 2021 |
Amendment
No. 4 to Master Contract |
Board
Approved Contract Increase |
July
1, 2021 - June 30, 2022 |
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May
24, 2022 |
Amendment
No. 5 to Master Contract |
Board
Approved Term Renewal and Contract Increase |
July
1, 2022 - June 30, 2024 |
On June 7, 2022, the Health Care Agency
(HCA) released a Request for Applications (RFA) seeking additional, qualified
DMC organizations to provide SUD treatment services for adults. Phoenix House
Orange County, Inc. (Phoenix House) and Spencer Recovery Centers Inc. (Spencer)
submitted applications and were deemed responsive. Reference letters for
Phoenix House were completed by State of California Division of Rehabilitative
Programs and County of Los Angeles Public Health Department with positive
reports. Reference letters for Spencer were completed by Warriors Heart and Dr.
Kenneth Gheysar from the American Board of Addiction Medicine with positive
reports. Additional funding of $2 million is being added to the Master Contract’s
aggregate amount not to exceed in order to accommodate the two new providers.
Existing contracts are being amended to reflect the Master Contract increase.
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 or from the clinics where they are currently receiving
services. Providers will directly admit
individuals that use drugs intravenously and/or are pregnant. All clients have
an assessment and must be authorized to receive this level of service. For adults, the length of residential
services for all levels will be 90-days maximum, unless medical necessity
authorizes a one-time extension of up to 30 days. 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.
Components 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 and
education and employment so that clients have a specific plan at the time of
discharge.
Performance
Outcomes
Providers are required to meet the
following performance objective for Residential Treatment:
Fifty
percent of clients will complete residential treatment program.
Twenty
percent of clients who have discharged will be linked with a lower level of
care within seven days.
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Program |
Completion Rate FY 2021-22 >50% |
Completion Rate FY 2022-23 (To February) >50% |
Linkage Rate (2022-23*) >20% |
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G
& C Swan, Inc. |
52% |
72% |
48% |
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Hope
House Corporation |
62% |
98% |
32% |
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Straight
Talk |
58% |
61% |
68% |
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Teen
Project, Inc. |
59% |
100% |
50% |
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Woodglen
Recovery Junction, Inc. |
47% |
70% |
56% |
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Phoenix
House |
50% |
49% |
52% |
*
Linkage Rates were not tracked prior to 2022.
In FY 2021-22, all providers either
met or exceeded the performance objective, with one provider, missing the
performance objective by three percent but is on track to exceed the
performance objective this fiscal year.
In addition, all other providers are on track for meeting or exceeding
performance objectives this year.
Spencer Recovery is a new provider, therefore there are no rates to
report at this time. Phoenix House
currently provides these services under an individual contract, which is in the
fifth and final year and expires June 30, 2023.
Phoenix House applied under the RFA to join the Master Agreement.
Contractors' performance has been
confirmed as satisfactory with no identified issues. HCA has verified there are
no concerns that must be addressed with respect to Contractors' ownership/name
litigation status or conflicts with County interests.
This contract, due to the nature of the
services, could require the addition of subcontractors. In order to add
subcontractor(s) to the contract, the provider/contractor must seek express
consent from the department. Should the addition of a subcontractor affect the
scope of work and/or contract amount, the department will bring the item back
to the Board of Supervisors for approval. In the past (if there is information
available), subcontractor(s) have/have not been used for this contract. See
Attachment I 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. The Good Neighbor Policy can be found in
Exhibit D of the contract.
|
Contractor |
Facility Location |
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G
& C Swan, Inc. |
Colton,
Upland |
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Hope
House Corporation |
Anaheim |
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Phoenix
House Orange County, Inc. |
Santa
Ana |
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Spencer
Recovery Centers Inc. |
Laguna
Beach |
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Straight
Talk Clinic, Inc. |
Santa
Ana |
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The
Teen Project, Inc. |
Trabuco
Canyon |
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Woodglen
Recovery Junction, Inc. |
Fullerton |
HCA requests that the Board approve the
Amendments with G & C Swan, Inc., Hope House Corporation, Straight Talk
Clinic, Inc., The Teen Project, Inc. and Woodglen Recovery Junction, Inc. and
the individual Contracts with Phoenix House Orange County, Inc. and Spencer
Recovery Centers Inc. for the provision of Adult Residential DMC SUD Treatment
Services as reference in the Recommended Actions.
FINANCIAL
IMPACT:
Appropriations for the Contracts
will be 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 service to clients, if
necessary.
Funding
Sources:
Fed: 20% (Substance Abuse Prevention and
Treatment 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. 6 to Master Contract MA-042-20010248 for Adult Residential
Drug Medi-Cal Substance Use Disorder Treatment Services
Attachment B – Amendment No. 6 to Contract MA-042-20010248 with G & C Swan,
Inc.
Attachment C – Amendment No. 5 to Contract MA-042-20010248 with Hope House
Corporation
Attachment D – Amendment No. 8 to Contract MA-042-20010248 with Straight Talk
Clinic, Inc.
Attachment E – Amendment No. 6 to Contract MA-042-20010248 with The Teen
Project, Inc.
Attachment F – Amendment No. 6 to Contract MA-042-20010248 with Woodglen
Recovery Junction, Inc.
Attachment G – Contract MA-042-20010248 for Provision of Adult Residential Drug
Medi-Cal Substance Use Disorder Treatment Services with Phoenix House Orange
County, Inc.
Attachment H - Contract MA-042-20010248 for Provision of Adult Residential Drug
Medi-Cal Substance Use Disorder Treatment Services with Spencer Recovery
Centers Inc.
Attachment I - Contract Summary Form