To: Board of Supervisors
From: Dr. Ori Tzvieli, Interim Health Services Director
Report Title: Standard Agreement #29-502-52 with the California Department of Health Care Services
☒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 Standard Agreement #29-502-52 (State #25-50095) with the California Department of Health Care Services (DHCS), regarding County agreeing to provide Drug Medi-Cal Organized Delivery Services (DMC-ODS) for Substance Use Disorder (SUD) treatment within Contra Costa County for the period July 1, 2025 through December 31, 2026.
FISCAL IMPACT:
This is a non-financial agreement.
BACKGROUND:
This Agreement is for the purpose of identifying and providing covered DMC-ODS services for SUD treatment within Contra Costa County. The County will provide covered DMC-ODS services described under the 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 the utilization of Federal and State funds. County will provide and/or arrange for the provision of DMC-ODS services operating as a Pre-Paid Inpatient Health Plan (PIHP) as defined in 42 C.F.R. section 438.2.
This Agreement is an intergovernmental agreement between the State and County by authority of chapter 3 (§ 11758.10, et seq.) of Part 1, Division 10.5 of the Health & Safety Code and with approval of the County’s Board of Supervisors (or designee) for the purpose of providing alcohol and drug services. This Contract is entered into in accordance with Health and Safety Code section 11848.5, W&I Code sections 14021.51-14021.53, 14124.20- 14124.25, and 14184.100 et seq., and Behavioral Health Information Notice (BHIN) 23-001 (including any successor BHIN).
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 the term of July 1, 2022 through June 30, 2027.
On June 10, 2025, the Board of Supervisors approved Grant Amendment #29-502-50 with the DHCS, to increase the amount payable to the County by $22,485,000 to a new amount not to exceed $215,685,000 to provide additional substance use disorder prevention and treatment services with no change in the term ending June 30, 2027.
The Health Services Department received a cancellation notice from DHCS, dated April 1, 2025, terminating Standard Agreement #29-502-48 (as amended by Grant Amendments #29-502-49 and #29-502-50) effective June 30, 2025.
Approval of new Standard Agreement #29-502-52 (State #25-50095) will allow County to continue to provide DMC-ODS services for SUD prevention and treatment services, through December 31, 2026. The 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. This Agreement is late due to County receiving the documents from the State in June 2025.
CONSEQUENCE OF NEGATIVE ACTION:
If this Agreement is not approved, the County will not be able to receive funding to support SUD prevention and treatment services to County residents.