Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Jei Africa, Director, Behavioral Health and Recovery Services
Subject: Agreement with Horizon Services, Inc. for Residential Substance Use Disorder Detoxification Services
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with Horizon Services, Inc. for residential substance use disorder detoxification services for the term of July 1, 2023 through June 30, 2024, in an amount not to exceed $3,051,472.
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BACKGROUND:
For over 35 years, Palm Avenue Detox (Palm Avenue), a program of Horizon Services, Inc. (Horizon), has been serving residents of San Mateo County. Horizon assists clients in connecting to ongoing substance use disorder treatment programs, primary and psychiatric care, housing, and other health-related services.
In April 2016, the California Department of Health Care Services (DHCS) and the Federal Government approved the Drug Medi-Cal Organized Delivery System (DMC-ODS) waiver for substance use disorder treatment services.
In July 2019, Horizon began providing services under the DMC-ODS waiver, allowing Horizon and other providers to bill for many more services than they were previously able.
In early 2021, DHCS investigated a client death that occurred at Palm Avenue in September 2020 and found widespread documentation fraud and practices that were putting clients' safety at risk.
In March 2021, DHCS issued an Immediate Temporary Suspension Order on Palm Avenue's license to operate, for violations of the Health and Safety Code and applicable regulations and rules. Class A deficiencies were found to "present an imminent danger" to client safety.
In June 2021, DHCS and Horizon executed a Stipulated Settlement Agreement (SSA) to resolve all the issues pertaining to the Order. In the SSA, Palm Avenue agreed to remain closed through August 14, 2021, an...
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