Agenda - 06-07-2022; 8-e - Renewal of Health Services Agreement with Southern Health Partners for Medical Services at the Orange County Detention Center

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Southern Health 3 Partners March 11, 2022 Sheriff Charles Blackwood Orange County Sheriff's Office 106 East Margaret Lane Hillsborough, NC 27278 Re: Health Services Agreement Dear Sheriff Blackwood: Southern Health Partners values the long-standing partnership developed with Orange County and it is a privilege to work with you and the Detention Center staff. We work hard to keep the cost of our program at Orange County as low as reasonably possible. We do, however, continue to experience rising costs associated with doing business and providing medical services, most remarkably in the following areas: • Pay rates — These have soared significantly in a highly competitive market due to the national nursing shortage. o Competitive pay rates-Given the current climate in the health care field we need to be competitive in what we are paying staff and in providing an attractive employee benefits plan. This is crucial to maintain the support and environment needed to promote staff stability in retaining good quality team members. o Unfavorable working shifts - The pay rates for night and weekend shifts are at a much greater increased cost than for other favorable work shifts. • Inflationary costs — Supply lines and core business insurance (professional liability, general liability) costs have substantially escalated and outpaced our average operating expenses. With these factors in mind, the new rates reflect an increase of$1,547.69 per month on the base fee and $0.07 on the per diem for the 2022-2023 contract period. Contract Period: July 1, 2022 through June 30, 2023 Base annualized fee: $390,017.64 ($32,501.47 per month) Per diem greater than 140: $1.52 Annual outside cost pool limits: $60,000.00 (first tier); $140,000.00 (second tier) For the historical contract record and to confirm the renewal of our original Health Services Agreement dated August 18, 2009 with Orange County, I will ask you to keep this letter and return a si_pned copy to me on or before April 29. 2022 by email geanette.rodriguez@southernhealthpartners.com) or by fax (423-305-6964). If this letter is not signed in a timely manner, then billing will be prorated back to the contract inception date. Except as modified above, or as may be further amended or modified by mutual agreement between the parties, all provisions of the contract will remain in full force and effect during the renewal period. Please call me at 423-553-5635, ext. 922 with any questions or concerns. We appreciate your understanding and investment in working with SHP to deliver a program of high-quality patient care services for Orange County. Sincerely, SOUTHERN HEALTH PARTNERS, INC. ORANGE COUNTY, NC BY: Jeanette Rodriguez Contracts Administrator 2030 Hamilton - . . Ste.140 Chattanooga,