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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 21, 2022 <br /> Action Agenda <br /> Item No. 8-q <br /> SUBJECT: Funding Agreement Between Orange County and Alliance Health <br /> DEPARTMENT: County Manager's Office <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Alliance Funding Agreement Travis Myren, Deputy Manager, (919) <br /> 245-2300 <br /> Nancy Coston, Social Services Director, <br /> (919) 245-2800 <br /> PURPOSE: To consider approving a funding agreement between Orange County and Alliance <br /> Health for the management of certain contracts funded through the required Maintenance of Effort <br /> (MOE) and County outside agency funds. The County anticipates this agreement streamlining <br /> some of the contract work with these agencies and promotes using existing Medicaid or state <br /> funds for appropriate mental health services before using County funds. <br /> BACKGROUND: The Manager's Recommended FY 2022-23 Budget provides $897,045 for <br /> Alliance Health to manage certain identified contracts that comprise part of the County's MOE <br /> commitment. Each County is required to provide MOE funding and can either provide funds to the <br /> local management entity/managed care organization (LME/MCO) or spend these funds directly. <br /> Orange County Alliance Health is now the LME/MCO for Orange County and has agreed to <br /> provide this service for next fiscal year. In addition to the MOE funds, Alliance will also manage <br /> outside agency funds for these entities. <br /> Through this agreement, Orange County will still designate the amounts paid to the identified <br /> contractors and will work with Alliance on performance expectations. <br /> Orange County will directly manage the remaining MOE funds ($458,929), supporting services in <br /> four County departments: Criminal Justice Resource, Health, Housing, and Social Services. <br /> The attached agreement delineates the roles of Alliance Health and Orange County, and specifies <br /> the organizations to receive funds and the amounts of these allocations (pending approval of FY <br /> 2022-23 budget). Alliance Health, after receipt of the required documentation (including fiscal <br /> and performance data), will make payments to providers. Orange County will reimburse Alliance <br /> Health for these approved payments and pay 2% of the total amount to cover administrative costs. <br /> FINANCIAL IMPACT: The funds for this agreement are included in the Manager's <br /> Recommended FY 2022-23 Budget in mental health maintenance of effort and outside agencies. <br />