RECOMMENDATION(S): (CONT'D)
(3) APPROVE and AUTHORIZE the revised rates contained on Attachment B for Substances Use Disorder (SUD) for Outpatient, Intensive Outpatient Treatment, Case Management, Recovery Support Services, Residential Treatment and Withdrawal Management.
(4) APPROVE and AUTHORIZE amended contract language to read “Contractor may request a monthly advance payment equal to 1/12th of the contract payment limit for the months of April through June. Contractor agrees to provide the services and fulfill the performance measures under the contact, for which the advance payment is rendered. If Contractor has not fully performed these contractual obligations, Contractor shall reimburse the County for the advance payment in proportion to its unfulfilled obligations”.
FISCAL IMPACT:
The recommended contract amendments recognize the business interruption issues faced by the Community Based Organizations (CBO’s). The rate adjustments coupled with the payment advance option will ensure that the CBO’s have sufficient cash to continue providing needed services to the community without a change to the annual contract payment limit. The contracts are partially funded with State “2011 Realignment” dollars. Given the COVID-19 impact on State revenues it is likely that collection of the Realignment funding will be delayed.
BACKGROUND:
COVID-19 is causing significant impacts to the community based behavioral health providers in Contra Costa County. Shelter in place orders are impacting the operations of these non-profit organizations that provide critical services to vulnerable residents of Contra Costa County. Social distancing requirements to prevent disease transmission may make delivery of critical services extremely difficult, impossible or ineffective. Many non-profit organizations have few, if any, financial reserves to sustain themselves. These advance funds are intended to be used by the Contractor to retain its providers who deliver direct reimbursable behavioral health services to Contra Costa residents both during and after the current emergency.
In accordance with Board Order Item D.6 approved by the Board of Supervisors on March 31, 2020, these contractors will receive a one-month advance payment as long as they provide the services and fulfill the performance measures under the contact, for which the advance payment is rendered.
This action provides changes to the contract payment structure through the end of the fiscal year thereby providing cash flow and budget predictability to the CBO’s.
CONSEQUENCE OF NEGATIVE ACTION:
If these Amendment Agreements are not approved the residents of Contra Costa County may experience reduced or discontinued behavioral health services.