OTHER-2026-043-Renewal of Health Services Agreement with Southern Health Partners for Medical Services at the Orange County Detention Center

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i Southern Health Partners March 19 , 2026 Sheriff Charles Blackwood Orange County Sheriff's Office 106 East Margaret Lane Hillsborough , NC 27278 Re : Health Services Agreement Dear Sheriff Blackwood : I hope this letter finds you well and pleased with the program of services at the Jail provided by Southern Health Partners ( SHP ) . I am writing to acknowledge annual pricing/terms for continuation of the inmate medical program for the July 2026 -2027 contract period . We continue to see unprecedented wage inflation and competition for skilled nursing staff, commonly contending with local hospitals , facilities and agencies offering wage rates far in excess of our site budgets . This is making it necessary for us to account for now- current costs of providing competitive salaries/benefit packages to keep good nurses and maintain contract staffing levels . Labor costs are one very substantial area of our operating budget , among many other ever- increasing costs of doing business in correctional care . Therefore , SHP will need a rate adjustment on the contract this year. Additionally, with many of our existing contracts , there is a need for restructuring along the same lines as how our newer contracts are priced considering the now- current industry standard , with certain service items covered by SHP for inclusion in the cost pool , rather than under the base fees . For Orange County's contract , there is a need to shift the cost of medically generated hazardous waste to the cost pool . Going forward under the new arrangement , the costs for this item will still be paid for by SHP , with the County continuing to receive the benefit of SHP ' s bulk pricing discounts from our various vendors , but the amounts will be applied toward the cost pool accounting totals to accrue against the annual pool limitation . Only if the annual cost pool limit is used up fully for any given contract period , then at that point SHP would begin to seek reimbursement from the County for any costs in excess of the cost pool limit , as is done under our current normal practice . Costs for medically generated hazardous waste have run approximately a total of $ 440 . 00 over the last twelve months . Under this new structure , we can limit our annual increase to four percent (4 % ) on the base fee and per diem rate for the July 2026 -2027 period , making use of the cost pool to help offset an otherwise higher annual adjustment that would be needed to get all operating cost- items and expenses adequately accounted for under the site budget if we were to continue under the existing terms . Be assured we take into consideration site -specific circumstances in reviewing each customer contract individually before formulating renewal pricing . Despite being faced with rising costs , we absorb as much as we reasonably can in an effort to support minimal annual adjustments for customers . 2030 Hamilton Place Blvd, Ste . 1 40 Chattanooga , ( phone ) 423 . 553. 5645 (fax )