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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: December 10, 2024 <br /> Action Agenda <br /> Item No. 8-f <br /> SUBJECT: Renewal of Health Services Agreement with Southern Health Partners for <br /> Medical Services at the Orange County Detention Center <br /> DEPARTMENT: Sheriff's Office <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Renewal Letter Dated October 29, 2024 Sheriff Charles S. Blackwood, <br /> for Contract Period July 1, 2024 919.245.2900 <br /> through June 30, 2025 Jennifer Galassi, Legal Advisor to the <br /> Sheriff, 919.245.2952 <br /> PURPOSE: To approve a one-year renewal of the Health Services Agreement with Southern <br /> Health Partners for medical services at the Orange County Detention Center. <br /> BACKGROUND: Since 2009, the County has contracted with Southern Health Partners (SHP) <br /> to provide a structured and comprehensive medical program for inmates housed in the Orange <br /> County Detention Center (OCDC). SHP is experiencing rising costs associated with providing <br /> competitive pay rates to staff, employee benefits, and other lines of insurance coverage. <br /> FINANCIAL IMPACT: Upon approval of the renewal, the monthly contract price will increase <br /> $13,650.64 per year. The new contract price will be $423,169.12 annually ($35,264.09, on <br /> average over the 12-month period, per month). If the average daily population (ADP) exceeds <br /> 140 inmates, the compensation payable to SHP shall be increased by a per diem rate of $1.60 <br /> for each inmate over 140. <br /> To bring this contract in line with now-current industry standards, SHP restructured it to shift the <br /> costs of medical supplies, over-the-counter medications, and labs, applying them toward the cost <br /> pool accounting totals to accrue against the annual pool limitation. If these costs were to exceed <br /> the annual cost pool limit, SHP would seek reimbursement from the County for the excess amount. <br /> The first tier of the annual outside cost pool is $60,000, while the costs for medical supplies, over- <br /> the-counter medications, and labs were $4,150 over the last twelve months. <br /> ALIGNMENT WITH STRATEGIC PLAN: This item supports: <br /> • GOAL 2: HEALTHY COMMUNITY <br /> OBJECTIVE 1. Improve harm reduction, prevention, and support services for adults and <br /> children experiencing behavioral health issues, substance use disorder, and intellectual or <br /> developmental disability. <br />