Agenda 05-19-2026; 8-d - Renewal of Health Services Agreement with Southern Health Partners for Medical Services at the Orange County Detention Center

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 19, 2026 Action Agenda Item No. 8-d SUBJECT: Renewal of Health Services Agreement with Southern Health Partners for Medical Services at the Orange County Detention Center DEPARTMENT: Sheriff's Office ATTACHMENT(S): INFORMATION CONTACT: Renewal Letter Dated March 19, 2026, Sheriff Charles S. Blackwood, for Contract Period July 1, 2026 — 919.245.2900 June 30, 2027 Jennifer Galassi, Legal Advisor to the Sheriff, 919.245.2952 PURPOSE: To approve a renewal of the Health Services Agreement with Southern Health Partners for medical services at the Orange County Detention Center. BACKGROUND: Since 2009, the County has contracted with Southern Health Partners (SHP) to provide a structured and comprehensive medical program for inmates housed in the Orange County Detention Center (OCDC). SHP is experiencing wage inflation and competing agencies offering substantially higher pay, leading to its decision to impose a four percent (4%) increase on the base fee and per diem rate. FINANCIAL IMPACT: Upon approval of the renewal, the monthly contract price will increase $17,887.80 per year. The new contract price will be $465,081.96 annually ($38,756.83 per month). If the average daily population (ADP) exceeds 140 inmates, the compensation payable to SHP shall be increased by a per diem rate of $1.82 for each inmate over 140. As in the previous two (2) fiscal years, SHP has continued the restructuring of the contract to shift the costs of medical supplies, over-the-counter medications, and labs, applying them toward the cost pool accounting totals to accrue against the annual pool limitation. If these costs were to exceed the annual cost pool limit, SHP would seek reimbursement from the County for the excess amount. The first tier of the annual outside cost pool is $60,000, and the second tier is $140,000. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 1. Improve harm reduction, prevention, and support services for adults and children experiencing behavioral health issues, substance use disorder, and intellectual or developmental disability OBJECTIVE 4. Reduce impacts and barriers for justice-involved children and adults through deflection, diversion, therapeutic interventions, and re-entry support, including housing.