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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 3, 2025 <br /> Action Agenda <br /> Item No. 8-r <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 February 27, Sheriff Charles S. Blackwood, <br /> 2025 for Contract Period July 1, 919.245.2900 <br /> 2025—June 30, 2026 Jennifer Galassi, Legal Advisor to the <br /> Sheriff, 919.245.2952 <br /> PURPOSE: To approve a renewal of the Health Services Agreement with Southern Health <br /> 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 operational costs associated with <br /> technology, infrastructure, and insurance products, leading to its decision to impose a four percent <br /> (4%) increase on the base fee and per diem rate. <br /> FINANCIAL IMPACT: Upon approval of the renewal, the monthly contract price will increase <br /> $17,199.72 per year. The new contract price will be $447,194.16 annually ($37,266.18 per <br /> month). If the average daily population (ADP) exceeds 140 inmates, the compensation payable <br /> to SHP shall be increased by a per diem rate of $1.75 for each inmate over 140. <br /> During the previous fiscal year, SHP restructured the contract to shift the costs of medical <br /> supplies, over-the-counter medications, and labs, applying them toward the cost pool accounting <br /> totals to accrue against the annual pool limitation. If these costs were to exceed the annual cost <br /> pool limit, SHP would seek reimbursement from the County for the excess amount. The first tier <br /> of the annual outside cost pool is $60,000, and the second tier is $140,000. <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 /> OBJECTIVE 4. Reduce impacts and barriers for justice-involved children and adults <br /> through deflection, diversion, therapeutic interventions, and re-entry support, including <br /> housing. <br />