Approve third amendment to Agreement No. 23-315 with Ole Health dba CommuniCare OLE to add funding in the amount of $605,000 for 2025-26 for a new contract maximum of $5,707,806.84 for the period of January 1, 2024 through June 30, 2026; for the provision of Substance Use Disorder Adult Continuum of Care services. (No general fund impact) (Morales)

Approve third amendment to Agreement No. 23-315 with Ole Health dba CommuniCare OLE to add funding in the amount of $605,000 for 2025-26 for a new contract maximum of $5,707,806.84 for the period of January 1, 2024 through June 30, 2026; for the provision of Substance Use Disorder Adult Continuum of Care services. 

Program Details:

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, including 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.

The SUD Continuum of Care services includes the following:

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

Contracting History:
As a result of a competitive solicitation process (details below), OLE Health dba CommuniCare OLE (“CommuniCare OLE”) was selected to provide outpatient, intensive outpatient, recovery, care coordination, clinician consultation, early intervention, contingency management/recovery incentives, and in-person access, screening, and referral services. On or about December 14, 2023, the County and CommuniCare OLE entered into Agreement 23-315 (“the Agreement”) for these services.  On or about August 7, 2024, the County exercised its option to extend the Agreement per its terms for Fiscal Year (FY) 2024-25. On or about October 22, 2024, the Agreement was amended to add funding to FY 2023-24 to cover the remaining FY 2023-24 invoices. Due to an increased utilization in services, the costs for services in FY 2023-24 were greater than projected. The funding for the increase was found in cost savings from other SUD treatment service agreements. On or about June 24, 2025, the Agreement was further amended via the Second Amendment to extend the term of the Agreement through FY2025-26 and add funding to ensure uninterrupted services.

Now HHSA staff requests approval of this third amendment to add additional funding for FY 2025-26. The additional funding is needed to meet the need of increased cost of services and a significant increase in number of referrals to outpatient treatment. There has been an increase in people accessing services in response to quality assessment and review of forensic related populations. CARE Act, Proposition 36 and all new unfunded mandates have increased the number of referrals and cost of the SUD contracts.

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

On March 3, 2023, the County via the Department of General Services, Procurement Division (Procurement) issued a Request for Proposal on behalf of the Health and Human Services Agency (HHSA) for Substance Use Disorder Adult Continuum of Care services. The solicitation was open for 64 days, (just over 9 weeks). On March 24, 2023, the County offered potential bidders an opportunity to ask questions during a bidder’s conference.  The County received three (3) proposal(s) from this solicitation.  Procurement reviewed the proposals for minimum requirements and all three (3) proposals were moved forward to the Review Committee for scoring. The Review Committee was comprised of two (2) HHSA staff members, one (1) Yolo County Probation staff member and one (1) Placer County staff member. The Review Committee evaluated the proposals and determined that the proposal submitted by CommuniCare OLE met all the required qualifications necessary to successfully provide these services. On or about June 27, 2023, the County issued an Intent to Award letter. Additional information regarding the Competitive Bid Process is provided below, including a summary of the solicitation evaluation criteria.

Bids Received

*not awarded under this RFP

Performance Measures included in this Agreement are as follows:
Performance Measures associated with the Agreement were included in the underlying Agreement and are not being revised at this time (see Att. B. Performance Measures).

HHSA confirms CommuniCare OLE is performing satisfactory under the Agreement. The provision of outpatient services has resulted in a twenty-five percent (25%) reduction in incarceration rates, a ninety-eight percent (98%) reduction rate in number of incarceration days, and a thirty-four percent (34%) reduction in substance use.