Approve first amendment to Agreement No. 23-318 with Granite Wellness to add funding in the amount of $126.87 for 2023-24; and add funding in the amount of $275,000 for 2024-25 for a new contract maximum of $987,626.87 for the period of January 1, 2024 through June 30, 2025; add two scopes of services; and add rates for 2024-25 for the provision of providing substance use disorder (SUD) adult continuum of care services. (No general fund impact) (Sullivan)

Approve first amendment to Agreement No. 23-318 with Granite Wellness to add funding in the amount of $126.87 for 2023-24; and add funding in the amount of $275,000 for 2024-25 for a new contract maximum of $987,626.87 for the period of January 1, 2024 through June 30, 2025; add two scopes of services; and add rates for 2024-25 for the provision of providing substance use disorder (SUD) adult continuum of care services.

The County entered into an agreement with the California Department of Health Care Services (DHCS) to provide Drug Medi-Cal Organized Delivery System (DMC-ODS) Substance Use Disorder (SUD) treatment services to eligible clients. DMC-ODS is a program for organized SUD services to Medi-Cal eligible individuals with SUD residing in a county that has elected to participate in the DMC-ODS. The program provides beneficiaries with access to care and system interaction needed to achieve sustainable recovery. The County also receives funding from a variety of other federal and state funding streams for the provision of SUD treatment services to various client populations, which may include but not limited to: Substance Abuse Prevention and Treatment (SABG) Block Grant Funds; Substance Abuse and Mental Health Services Administration (SAMHSA); CalWORKS and Child Welfare Services (CWS) funding; 2011 Realignment; AB109 Revenue, FFP, and Opioid Settlement funds.

SUD Continuum of Cares services includes the following:

These services are provided to any eligible Yolo County resident referred through an access point established by Yolo County or directly requesting services through a provider and include, but not limited to, the following populations/programs:

Contracting History:
On October 13, 2023, the Deputy Director/Manager of Procurement or designee approved a single source procurement for Granite Wellness to provide withdrawal management, low intensity residential, high intensity residential, perinatal residential services, care coordination, and clinician consultation services.  

On September 13, 2024, the Deputy Director/Manager of Procurement or designee approved a second single source procurement allowing the addition of two new scopes for fiscal year 2024-25 that includes outpatient services and recovery residence (details below).

On or about January 12, 2024, the County and Granite Wellness entered into Agreement No. 23-318 (“the Agreement”) for withdrawal management, low intensity residential, high intensity residential, perinatal residential services, care coordination, and clinician consultation services.

On or about May 7, 2024, the County exercised its option to extend the Agreement per its terms for fiscal year (FY) 2024-25.

Now, HHSA requests approval of this amendment to the Agreement to add funding to FY 2023-24 to cover remaining fiscal year 2023-24 invoices. The additional funding for FY 2023-24 is needed due to an increase utilization in services in FY 2023-24 were greater than projected. The funding for this FY 2023-24 increase was found in cost savings from other SUD treatment service agreements.

The approval of this amendment will also add funding for FY 2024-25. The additional funding for 2024-25 is needed to meet the increase in services. The number of residential referrals has tripled and sometimes quadrupled in the past two years. It is expected that the County will continue to see even further increases in current and future years.

Performance Measures included in this Agreement are as follows:
The Performance Measures were included in the underlying Agreement and are not being revised at this time (see Att. B. Performance Measures). HHSA confirms Granite Wellness has performed satisfactorily under this agreement. For example, 70% of referrals to Granite Wellness resulted in successful intake. Granite Wellness offers increased after-care follow-up and coordination to outpatient services. Granite Wellness Center has had an increase in successful completions in the past 6 months as compared to the prior 6 months. 

County Counsel has approved this Agreement as to form.
Department of General Services, Procurement Division.

A single source was deemed appropriate for these services because the County has a contractual obligation with the State to provide SUD continuum of Care services that include 3.1 residential, withdrawal management 3.2, residential 3.5 and perinatal services. County staff completed outreach to several agencies in the region and Granite Wellness is the only provider that offers perinatal services and is willing to contract for those services. They are the only perinatal provider in the region that is currently certified for Drug Medi-Cal delivery system services.

By contracting these services with Granite Wellness, the County is able to meet the state requirements of providing SUD services to all levels of care in a timely manner. The provider costs for these services align with County SUD budgets and set rates. Without single source approval, the County would not be able to meet the needs of Yolo County residents. County residents would be put at risk of not having timely access to SUD services, costly interventions, significant delays in treatment and adverse effects when needed.