FAMILY & HUMAN SERVICES COMMITTEE
Meeting Date: May 12, 2025
Subject: Behavioral Health Transformation
Submitted For: Ori Tzvieli, Interim Health Services Director
Department: Health Services
Referral No: N/A
Referral Name: N/A
Presenter: Dr. Suzanne Tavano, Director of Behavioral Health
Contact: Dr. Suzanne Tavano, (925) 957-5169
Referral History:
In response to the nationwide opioid crisis, Contra Costa County has joined California's broader effort to leverage resources secured through national settlement agreements. These settlements, finalized in 2022 and 2023, resolve litigation against major opioid manufacturers, distributors, and retail pharmacies for their role in exacerbating the epidemic.
Through these agreements - which include companies such as Janssen Pharmaceuticals (Johnson & Johnson subsidiary), McKesson, Cardinal Health, AmerisourceBergen, Teva, Allergan, Walgreens, Walmart, and CVS - California is expected to receive more than $2 billion in settlement funds over the coming years. These funds are designated to support activities that prevent, treat, and remediate opioid use disorders (OUD).
Contra Costa County participates in the California Opioid Settlement Funds (OSF), through direct access to funding from the California Abatement Accounts Fund. The California Department of Health Care Services (DHCS) oversees these funds statewide, providing guidance and ensuring that allocations align with state law and the settlement terms. BrownGreer PLC, the national administrator, manages payment distribution.
According to the terms of the OSF, the funds must be used for opioid remediation activities outlined in Exhibit E3 of the National Settlement Agreement. Local priorities are expected to focus on Opioid-related prevention, treatment expansion, harm reduction services, and recovery support. Specific examples of eligible activities include:
• Naloxone distribution and overdose prevention initiatives
• Medication-assisted treatment (MAT) program expansion
• Public health education and awareness campaigns
• Services addressing co-occurring mental health and substance use conditions
Administrative costs are capped at no more than 5% of a jurisdiction's total funding allocation, ensuring that most dollars are directed toward direct service delivery and community impact.
Settlement payments are structured over multiple years, with funding disbursed annually and extending for up to 18 years, depending on the terms of each agreement. This long-term investment provides Contra Costa County with an opportunity to expand a sustainable opioid response infrastructure, strengthen partnerships with community-based organizations, and drive measurable reductions in opioid-related harm across diverse communities.
Referral Update:
Please see the attached 2025 report on the Opiod Crisis in Contra Costa, including Opiod Settlement Funds.
Recommendation(s)/Next Step(s):
ACCEPT the report from the Behavioral Health Division of the Health Services Department on the Opiod Crisis in Contra Costa, and FORWARD to the Board of Supervisors for discussion;
ACKNOWLEDGE that the delays created in program implementation, resulted from slow release of funding, workforce shortages, inability to hire in a timely manner and delays in implementing the required community engagement process;
DIRECT Behavioral Health to continue efforts intended to raise community awareness and education in the community;
DIRECT Behavioral Health to distribute funds through the Request for Proposals (RFP) process and support projects and activities with equity-driven programming, and measurable community impact;
ACCEPT the Division’s recommendation to distribute available OSF as follows: 50% treatment and recovery, 20% harm reduction/intervention, 30% prevention, while maintaining spending requirements of no less than 50% in High Impact Abatement Initiatives;
ACCEPT recommendation to issue additional Request for Proposals to ensure that Exhibit E activities and Core Strategies are implemented in the community;
DIRECT Behavioral Health staff to continue to track data to monitor the impact of opioids in the County and continue efforts to prevent overdoses;
SUPPORT, efforts intended to promote the County’s OD-Free Contra Costa campaign to increase awareness and education in the community;
SUPPORT continued efforts to increase substance use disorder (SUD) and medication assisted treatment (MAT) and support SUD treatment provider initiatives intended to remove barriers to treatment; and
DIRECT, Behavioral Health to continue to work with local cities and subdivisions to amplify the impact of abatement efforts.
Fiscal Impact (if any):
There is no fiscal impact.