To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract #77-312-1 with Sierra Health and Wellness Centers LLC (dba New Start Recovery Solutions)
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #77-312-1 with Sierra Health and Wellness Centers LLC (dba New Start Recovery Solutions), a limited liability company, in an amount not to exceed $300,000, to provide substance abuse rehabilitation services to Contra Costa Health Plan (CCHP) Members for the period from January 1, 2024 through December 31, 2026.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $300,000 over a three-year period and will be funded 100% by CCHP Enterprise Fund II revenues. (No rate increase)
BACKGROUND:
CCHP has an obligation to provide certain specialized substance abuse rehabilitation facility health care services for its members under the terms of their Individual and Group Health Plan membership contracts with the County. This contractor has been a member in the CCHP Provider Network providing substance abuse services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since January 1, 2021. This contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000; Health and Safety Code § 1451. Health Services Personnel approved this contract to ensure no conflicts with labor relations in December 2023.
The nature of substance abuse rehabilitation facility services needed is complex and requires seamless coordination, integration and collaboration with existing programs and systems. Opting for Sierra Health and Wellness Centers with a proven track record and established reputation within the medical community mitigates potential risks associated with CCHPs success and patient well-being. There are a total of 6 agencies for substance abuse rehabilitation facility services in CCHP’s service area. CCHP is currently contracted with 2 of the substance abuse rehabilitation facility providers. This Contract renewal will maintain comprehensive area coverage for the entire CCHP membership and meet the Knox-Keene Act, time and distance mandate required by the State of California Department of Managed Health Care (DMHC) services. This contractor has been approved by the Public Works Department’s Purchasing Division on December 12, 2023.
On January 19, 2021, the Board of Supervisors approved Contract #77-312 with Sierra Health and Wellness Centers, LLC, in an amount not to exceed $225,000, for the provision of substance abuse rehabilitation facility services for CCHP members, for the period January 1, 2021 through December 31, 2023.
Approval of Contract #77-312-1 will allow the contractor to continue to provide substance abuse rehabilitation services for CCHP members through December 31, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved certain specialized substance abuse rehabilitation facility services for CCHP members under the terms of their Individual and Group Health Plan membership contracts with the county will not be provided and services may be delayed.