REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  May  9, 2017
CATEGORY:  Consent - Health and Human Services-5.

SUBJECT:

First Amendment with Empire Hotel, EHARC, Inc. dba Empire Recovery Center

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Dean True, Branch Director, HHSA Adult Services, (530) 225-5900

STAFF REPORT APPROVED BY:  Dean True, Branch Director, HHSA Adult Services

RECOMMENDATION

Approve and authorize the Chairman to sign an amendment, effective date of signing, to the agreement with Empire Hotel, EHARC, Inc. d.b.a. Empire Recovery Center for alcohol and/or substance abuse outpatient services to extend the term for one year through June 30, 2018 and incorporate changes to contract language as required per the California Department of Health Care Services Substance Use Disorder Services agreement,  retaining the maximum compensation not to exceed $560,000 per fiscal year.

SUMMARY

This amendment will allow Empire Hotel, EHARC, Inc. dba Empire Recovery Center (Empire) to continue to provide outpatient alcohol and substance abuse treatment services to residents of Shasta County for an additional year and to remain in compliance with the California Department of Health Care Services (DHCS) regulations.

DISCUSSION

Empire has contracted with Shasta County for several years for the for the provision of outpatient drug-free treatment services and are certified as Drug Medi-Cal providers by the DHCS, making them eligible to bill for alcohol and other drug treatment services provided to Medi-Cal beneficiaries. This amendment extends the terms for one year while Shasta County works with DHCS to develop a Drug Medi-Cal Organized Delivery System (DMC-ODS).  This DMC-ODS project is jointly sponsored by Shasta County, Partnership HealthPlan of California (PHC), and other northern California counties that have PHC as their Medi-Cal managed care plan.  Once in place, the array of drug and alcohol treatment services covered and available to Medi-Cal beneficiaries will greatly increase and significantly improve care coordination and system integration.    

ALTERNATIVES

The Board could choose not to approve the amendment, defer consideration to a future date, or provide direction to staff to negotiate changes to the amendment.

OTHER AGENCY INVOLVEMENT

County Counsel approved the amendment as to form.  Risk Management has reviewed the amendment. The Probation Department supports this recommendation. The recommendation has been reviewed by the County Administrative Office.

FINANCING

The funding for the agreement is financed through a combination of federal and local (previously state) funding sources including the Federal Substance Abuse Prevention and Treatment Block Grant Drug/Medi-Cal program funds with a County share of cost that is funded through Realignment 2011 and Public Safety Realignment 2011.  Sufficient appropriation authority for the agreement is included in the Requested FY 17-18 Budget.  There is no additional General Fund impact with approval of the recommendation.