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Regular-General Government # 43.
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| Board of Supervisors |
County Administrator |
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| Subject |
| Approve contract amendment with Dignity Health (dba Woodland Memorial Hospital) to continue their operation of the Yolo Adult Day Health Center for an additional year ending June 30, 2017. (Potential general fund impact) (Blacklock/West) |
| Recommended Action |
| Approve contract amendment with Dignity Health (dba Woodland Memorial Hospital) to extend their operation of the Yolo Adult Day Health Center (ADHC) for an additional year ending June 30, 2017, equally share documented program operating losses up to an amount payable by the County not to exceed $150,000 for the fiscal year; and continue to utilize the ADHC Board Ad Hoc Subcommittee to collaboratively examine sustainable organizational structures for the center. |
| Strategic Plan Goal(s) |
| Thriving Residents Safe Communities |
| Reason for Recommended Action/Background |
In November 2015 the Board of Supervisors directed the formation of an Ad Hoc Subcommittee to facilitate identifying a long term solution for the Yolo ADHC. As discussed at the November Board meeting, the center is in need of a long term solution to address its structural deficit, current waiting list and facility limitations.
Currently, the Yolo ADHC is operated by Dignity Health through a management agreement with Yolo County, who owns the facility and holds the license for the center. The agreement is set to expire at the end of June 2016 (see Attachment A). Dignity has expressed an interest in no longer serving as the operator of the Yolo ADHC. Therefore, the County has negotiated with Dignity Health to amend the current agreement to extend their operation of the center for an additional year in order to allow further time for a long term organizational solution to be established.
The amendment agreed upon, as set forth in Attachment B, extends Dignity Health’s operation of the Yolo ADHC through June 30, 2017 with the option to extend for an additional year. The County and Dignity Health agree to split documented center operating losses up to an amount payable by the County not to exceed $150,000. Lastly, the agreement specifies that Dignity Health and the County continue to participate in the established Ad Hoc Subcommittee to identify a long term sustainable organizational structure for the Yolo ADHC.
Over the course of the past six months, the Ad Hoc Subcommittee has reviewed data regarding the demographics and financial limitations of the Yolo ADHC as well as conducted site visits at various ADHCs in the region to determine best practices. This research has shown that the structural deficit at the center is not uncommon among non-profit ADHCs due to low Medi-Cal reimbursement rates as well as facility size limiting the number of participants needed to reach a balanced budget. With these findings in mind, the Subcommittee is currently in the process of reaching out to health care providers in the region (see Attachment C for outreach timeline) . The purpose of this outreach is to gage the potential interest in partnerships for the continuation of the services provided by the center and to aid in the development of a sustainable long term plan. |
| Collaborations (including Board advisory groups and external partner agencies) |
Yolo ADHC Ad Hoc Committee
Dignity Health
County Counsel |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| The amendment requires Dignity Health and Yolo County to split the documented operating losses for the Yolo ADHC for the year of the extension. The operating losses paid by the County will not exceed $150,000. The determined cost is estimated to be paid on contingency in fiscal year 2017-2018. |
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