To: Board of Supervisors
From: Dr. Ori Tzvieli, Interim Health Services Director
Report Title: Grant Amendment #29-502-50 with the California Department of Health Care Services
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee

RECOMMENDATIONS:
APPROVE and AUTHORIZE the Interim Health Services Director, or designee, to execute on behalf of the County Standard Amendment Agreement #29-502-50 (State #22-20151, A2) with the California Department of Health Care Services (DHCS), to increase the amount payable to the County by $22,485,000, from $193,200,000 to a new amount not to exceed $215,685,000 to provide additional Substance Use Disorder (SUD) prevention and treatment services, with no change in the term through June 30, 2027.
FISCAL IMPACT:
Approval of this Grant Amendment will result in an additional amount of $22,485,000 payable to the County.
BACKGROUND:
DHCS provides funding to counties for SUD prevention and treatment services through a contractual mechanism. This contract is supported by State General Fund and the Federal share of reimbursement claimed for Drug Medi-Cal services. This agreement is entered into by and between DHCS and the county for the purpose of identifying and providing covered Drug-Medical Organized Delivery System (DMC-ODS) services for SUD treatment within Contra Costa County. The county will provide covered DMC-ODS services described under this agreement to eligible Medi-Cal beneficiaries who reside within the county. The objective of this agreement is to make DMC-ODS services available to Medi-Cal beneficiaries through utilization of Federal and State funds.
On November 29, 2022, the Board of Supervisors approved Standard Agreement #29-502-48 with the DHCS, to pay the County an amount not to exceed $193,200,000 to provide SUD prevention and treatment services, for the period from July 1, 2022 through June 30, 2027. This Agreement includes the County agreeing to indemnify, defend and hold the State harmless for claims arising out of the County’s performance under the Agreement.
On January 9, 2024, the Board of Supervisors approved Grant Amendment #29-502-49 with the DHCS, effective July 1, 2023, to align the California Advancing and Innovating Medi-Cal Payment Reform with the DHCS Payment Reform Plan, for continuing Drug Medi-Cal Substance Abuse Treatment Services with no change in the original amount paid to the County of $193,200,000 or term July 1, 2022 through June 30, 2027
Approval of this Grant Amendment #29-502-50 will allow the County to receive additional funds to continue to provide SUD prevention and treatment services, through June 30, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this Grant Amendment is not approved the County will not be able to receive additional funding to support SUD prevention and treatment services.