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Consent-Health & Human Services   # 21.
Board of Supervisors
Meeting Date:
09/09/2025
Brief Title
Drug Medi-Cal Organized Delivery System Services
From:
Monica Morales, Director, Health and Human Services Agency
Staff Contact:
Tony Kildare, Interim Behavioral Health Director, Health and Human Services Agency
Supervisorial District Impact:
Countywide

Subject

Approve and authorize the Chair to sign State Agreement No. 25-50120 with the California Department of Health Care Services (DHCS) to receive funding to reimburse County for covered services for the period of July 1, 2025 through December 31, 2026 for the provision of Drug Medi-Cal Organized Delivery System services. (No general fund impact) (Morales) 

Recommended Action

  1. Approve and authorize the Chair to sign State Agreement No. 25-50120 with the California Department of Health Care Services (DHCS) to receive funding to reimburse County for covered services for the period of July 1, 2025 through December 31, 2026 for the provision of Drug Medi-Cal Organized Delivery System services; 
     
  2. Authorize the Yolo County Manager of Procurement, or designee, to execute any non-financial extensions or amendments of the Agreement, upon approval as to form by the County Counsel; and
     
  3. Authorize the Director of Health and Human Services Agency, or designee, to execute any fiscal and program reports required under this Agreement, including reports required under any extensions or amendments thereto.

Strategic Plan Goal(s)

Thriving Residents
Collaborative Community
County Mandated Service

Reason for Recommended Action/Background

On or about August 31, 2023 the County entered into State Agreement No. 23-30126 with the California Department of Health Care (DHCS) to receive funding in the amount of $36,675,000 for the period of July 1, 2023 through June 30, 2027. This funding supports the Drug Medi-Cal Organized Delivery System (DMC-ODS), which provides substance use disorder (SUD) support services. On April 1, 2025 the County received a Cancellation of Intergovernmental Agreement No. 23-30126 letter from DHCS, notifying that Agreement No. 23-30126 would be cancelled effective June 30, 2025. The letter further stated that DHCS would be issuing a new reimbursement based, zero-dollar agreement that would be effective July 1, 2025 through December 31, 2026, which would allow the County to submit claims for Covered Services.

Covered Services under DMC-ODS include:
  • Outpatient Treatment: Individual and group counseling for substance use
  • Intensive Outpatient Treatment: Structured, multi-hour sessions for higher acuity clients
  • Medication-Assisted Treatment (MAT): Use of medications like buprenorphine, methadone, and naltrexone in combination with counseling
  • Withdrawal Management (Detoxification): Medically monitored and non-medical detox services
  • Residential Treatment Services: Short-term, live-in treatment for individuals with severe SUD needs
  • Recovery Services: Ongoing support services post-treatment including relapse prevention, peer support, and care coordination
  • Care Coordination: Service navigation and coordination between providers to ensure continuity of care
  • Narcotic Treatment Program Services: Daily medication dosing and counseling for opioid use disorder
  • Youth and Perinatal Services: Specialized care for adolescents and pregnant/postpartum individuals
These services are essential to ensuring that Medi-Cal beneficiaries have timely access to effective SUD treatment, reduce hospitalizations, support recovery, and reduce criminal justice involvement related to untreated substance use. Without an active agreement, the County would be unable to claim reimbursement for these critical services, which would directly impact our capacity to serve vulnerable populations and meet statewide behavioral health objectives.

Collaborations (including Board advisory groups and external partner agencies)

County Counsel has approved this Agreement as to form

Competitive Bid Process/Vendor Performance

Not applicable to revenue agreements

Vendor Performance
Performance Measures are not associated with this revenue agreement.

Fiscal Impact

Fiscal impact (see budgetary detail below)

Fiscal Impact (Expenditure)

Total cost of recommended action:
$    5,000,000
Amount budgeted for expenditure:
$   5,000,000
Additional expenditure authority needed:
$   
On-going commitment (annual cost):
$   2,500,000

Source of Funds for this Expenditure

FFP FY25-26
$5,000,000

Further explanation as needed:

No general funds are required by this action. The total amount of this action has historically been $4,000,000 in Federal Financial Participation (FFP) reimbursement revenue per fiscal year. HHSA estimates the FFP reimbursement for this zero-dollar agreement to be $5,000,000 for fiscal year 2025-26 and $2,500,000 for fiscal year 2026-27. The estimated total revenue for the period of July 1, 2025 through December 31, 2026 is $7,500,000. The amount of $5,000,000 is included in the HHSA recommended budget for fiscal year 2025-26. The related funding will be included in the requested budget process for future fiscal years.

Attachments

Form Review

Inbox Reviewed By Date
Evis Morales Evis Morales 08/28/2025 01:29 PM
Evis Morales Evis Morales 08/28/2025 02:27 PM
Tony Kildare Tony Kildare 08/29/2025 11:50 AM
Monica Morales Monica Morales 09/02/2025 10:14 AM
Financial Services Laura Liddicoet 09/02/2025 11:15 AM
County Counsel Hope Welton 09/02/2025 12:03 PM
Yen Nguyen Yen Nguyen 09/02/2025 03:02 PM
Form Started By:
Emily Covey
Started On:
07/24/2025 01:16 PM
Final Approval Date:
09/02/2025