REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  May  9, 2017
CATEGORY:  Consent - Health and Human Services-4.

SUBJECT:

Substance Use Disorder Services Fifth Amendment

Supervisorial District No. :  ALL

DEPARTMENT CONTACT:  Dean True, Branch Director, (530) 225-5901

STAFF REPORT APPROVED BY:  Dean True, Branch Director

RECOMMENDATION

Approve and authorize the Chairman to sign: (1) A retroactive amendment, effective July 1, 2016, to the revenue agreement (No. 14-90103) with the California Department of Health Care Services to provide alcohol and other drug treatment and prevention services to modify terms and conditions, increase the contract maximum compensation for the entire term of the agreement by $1,273,200 (from $6,103,103 to $7,376,303), and revise applicable exhibits and clarifying language and duties for the delivery of alcohol and other drug treatment and prevention services, retaining the term July 1, 2014 through June 30, 2017; (2) the Contractor Certification Clauses Form (CCC-307); and (3) the California Civil Rights Laws Certification Form.

SUMMARY

Approval of this fifth amendment assures Shasta County will continue to receive federal and state funds designated for the provision of Drug Medi-Cal alcohol and other drug treatment and prevention services through Fiscal Year (FY) 2016-17.

DISCUSSION

This multi-year agreement (Agreement Number 14-90103), is the mechanism by which Shasta County receives Federal and State funds for the delivery of alcohol and other drug treatment and prevention services and covers fiscal years 2014-15, 2015-16 and 2016-17.  This fifth amendment is required to increase compensation and for Shasta County to continue to receive this funding.

With the approval of this fifth amendment, the funding under this multi-year agreement will increase by $1,273,200 for the entire three-year term for a new total funding amount of $7,376,303.  This funding increase is largely the result of the change from “County of Service” to “County of Responsibility” for the provision of and payment for drug and alcohol services: it does not represent any substantive increase in dollars available for services.  Due to this change, as of July 1, 2016, Shasta County now has the responsibility to pay for services that were previously provider to Shasta County beneficiaries in another county. An example of such service ismethadone treatment that Shasta County beneficiaries were provided in Butte County. Until this change, Butte County submitted billing claims directly to the state, and they received the funds necessary to pay for those services. With the change to ‘county of responsibility’, those dollars will now flow to Shasta County, and Shasta will be responsible for submitting claims and paying out of county providers directly.  This change brings Drug Medi-Cal billing into line with other Medi-Cal billing practices. 

The fifth amendment identifies the following increased funding levels for FY 2016-17 within Federal Drug/Medi-Cal allocation from $205,692 to $1,478,892, thus increasing overall total State and Federal Funding from $1,718,746 to $2,991,946.  Funding for FY 2014-15 and FY 2015-16 did not increase or decrease as stated in the previous fourth amendment in which the Board approved on September 20, 2016.

Additional changes proposed by this amendment are:  providing threshold language translation and interpreter services; annual sub-recipient pre-award risk assessments; and increasing Drug Medi-Cal reimbursement rates.

This fifth amendment is retroactive as it was not received from the State of California Department of Health Care Services (DHCS) until March of this year.

ALTERNATIVES

The Board could choose not to approve the amendment with DHCS.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the amendment as to form.  Risk Management has approved the amendment.  The Information Technology department has approved the amendment. This recommendation has been reviewed by the County Administrative Office.

FINANCING

The total amount of funding available to Shasta County under the terms of this agreement is $7,376,303. Associated revenue is included in the HHSA FY 2016-17 Adjusted Budget.  There is no additional General Fund impact with approval of the recommendation.