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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Health Services Agency
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DATE:
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June 10, 2004
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BOARD MEETING DATE:
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June 29, 2004
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TO:
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Honorable Board of Supervisors
Acting as the In-Home Supportive Services Public Authority
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FROM:
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Charlene A. Silva, Director of Health Services
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Lisa L. Mancini, Director of Aging and Adult Services
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SUBJECT:
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Agreement with Addus HealthCare, Inc.
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Recommendation
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Adopt a resolution authorizing the President of the Board of Supervisors to execute an agreement with Addus HealthCare, Inc., for July 1, 2004 to June 30, 2007
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Background
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In September 1993, by ordinance of the San Mateo County Board of Supervisors, a Public Authority was established to administer the provider components of the In-Home Supportive Services (IHSS) program. The enabling ordinance designated the Board of Supervisors as the governing board of the Public Authority.
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There are approximately 2,300 senior and disabled clients receiving IHSS in San Mateo County. Services are delivered using two modes: individual providers, who serve a majority of the clients, and a contract agency serving approximately 120 clients. Clients who are unable to hire, supervise or fire their own providers due to the type or severity of their disabilities are referred to the contractor for services. Contract services are reserved for the most at-risk clients who would otherwise need to be placed outside their home and thus are an integral part of our service delivery system. Contract services enable individuals to remain independent for as long as possible and avoid premature institutionalization.
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Discussion
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In December 2003, Aging and Adult Services, acting on behalf of the Public Authority, issued a Request for Proposals (RFP) for IHSS contract services for a three-year period beginning July 1, 2004. Only two organizations submitted proposals in response to the RFP: Addus HealthCare, Inc., and Home Instead Senior Care. A review committee made up of representatives from various health divisions and a community agency evaluated the two proposals. The committee reviewed each applicant’s experience, cost, and ability to comply with program requirements. Based on the criteria and the committee’s evaluation, Addus HealthCare, Inc., was selected to provide IHSS contract services for a three-year period.
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The agreement provides for the delivery of a maximum of 182,000 hours of IHSS to eligible senior and disabled residents of San Mateo County each year for three years beginning July 1, 2004.
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Payment for services provided under this agreement is dependent on the availability of Federal, State and County revenues at the sharing ratios in existence as of the date of execution of this agreement and on a state-approved Maximum Allowable Contract Rate (MACR) for IHSS Contract Services of $19.02 per hour. Should either the ratio or the MACR change, this contract may be renegotiated at a new rate or terminated with thirty (30) days’ notice by the Contractor or the Director of Health Services. County Counsel has reviewed and approved this agreement.
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Vision Alignment
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This Agreement with Addus HealthCare, Inc., keeps the commitment of Ensuring Basic Health and Safety for All as stated in goal number 8: Help vulnerable people – the aged, disabled, mentally ill, at-risk youth and others – achieve a better quality of life. This agreement contributes to this commitment and goal by providing services throughout the county designed to assist individuals with the greatest needs to maintain their independence and dignity within the least restrictive setting possible.
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Fiscal Impact
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The term of this agreement is July 1, 2004 to June 30, 2007.The maximum hours that can be purchased under this agreement each year is 182,000 at a fixed rate of $18.18 per hour for the first year for a total of $3,308,760; $18.29 the second year for a total of $3,328,780; and $18.42 the third year for a total of $3,352,440. The maximum amount payable under the agreement is not to exceed $9,989,980. State and Federal funds pay approximately 81.1% of the cost of this agreement. The remaining 18.9% ($1,888,106) represents the required County obligation for the agreement. It is anticipated that approximately 47.5% of this cost to the County will be offset through the application of Realignment trust funds. The amount necessary for reimbursement of this agreement for the first year is included in the recommended 2004-05 Public Authority budget.
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