January 7, 1999

Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, California 90012

Dear Supervisors:

TERMINATION OF SIX AGREEMENTS WITH THE LOS ANGELES NATIVE AMERICAN CENTER (2nd and 4th Districts) (3 Votes)

IT IS RECOMMENDED THAT YOUR BOARD:

1. Terminate two Alcohol and Drug Program Administration Agreements (Nos. H-208685 and H-209318) for alcohol and drug residential treatment and recovery services; and four Office of Managed Care Agreements (Nos. 70403, H-207165, H-208751, and H-209698) for primary care services, all with the Los Angeles Native American Center, further described in Attachment A.

2. Instruct the Director of Health Services, or his designee, to provide the Notices of Termination to the Los Angeles Native American Center, with 30 or 90-day advance written notice, as appropriate, substantially similar to the sample notices found in Attachment B.

PURPOSE OF THE RECOMMENDED ACTIONS:

In approving these actions, the Board is authorizing the Director of Health Services, or his designee, to:

- Terminate six Department of Health Services (DHS) agreements with the Los Angeles Native American Center (LANAC); and

- Issue the required 30 or 90-day advance written notice of termination, as appropriate, to LANAC.

Honorable Board of Supervisors
January 7, 1999
Page 2

The current agreements may be terminated at the convenience of the County, at any time by providing a 30 or 90-day advance written notice to LANAC, depending on each contract's termination provisions.

JUSTIFICATION:

As a result of a recently conducted programmatic and fiscal monitoring of LANAC, it has become apparent to DHS that LANAC is in imminent danger of insolvency, unable to meet its payroll or pay its utility bills, with a pending foreclosure on its two properties in Bellflower and Compton. As such, the Department has determined that the best recourse is to recommend termination of the six referenced agreements, at the convenience of the County.

FISCAL IMPACT:

For Fiscal Year (FY) 1997-98, LANAC received advance funding from the Public/Private Partnership (PPP) Program. Because of the FY 1997-98 advance (and an additional advance made during FY 1996-97), LANAC currently owes the County $52,690 for FY 1996-97 and $114,345 for FY 1997-98.

LANAC was given until December 24, 1998, to produce any outstanding claims for services provided in the current and two prior fiscal years. Any amounts payable from these claims will be offset against the amounts owed for the advance payments. The Department plans to refer collection for the balance owed to the Treasurer and Tax Collector.

For FY 1998-99, the Department intends to reallocate unexpended LANAC contract funding to other contractors under the respective DHS contract programs, with the first priority being culturally-appropriate agencies which serve American Indian populations.

FINANCING:

On June 16, 1998, the Board approved $688,000 in FY 1998-99 funding for LANAC's Bellflower site under the PPP Program on a per visit basis.

(Because LANAC's reimbursement under the Healthy Families and Medi-Cal Managed Care Programs is based on a monthly capitated per member enrolled basis, there is no adverse financial impact. The Office of Managed Care (OMC) has removed LANAC from the next publication of the membership provider directory for these two programs and suspended assignments beginning November 1998.)

Honorable Board of Supervisors
January 7, 1999
Page 3

On October 21, 1997 and June 30, 1998, the Board approved $48,680 and $111,619, respectively, in FY 1998-99 funding for LANAC's Compton site under the Alcohol and Drug Program Administration (ADPA) Residential Program on a fee-for-service basis.

FACTS AND PROVISIONS/LEGAL REQUIREMENTS:

Two ADPA Agreements

Two of the affected agreements are administered by ADPA, under its Residential Program for alcohol and drug treatment and recovery services. Agreement No. H-208685 is effective November 1, 1997 through June 30, 1999; and Agreement No. H-209318 is effective July 1, 1998 through June 30, 1999. The only service site under these two agreements is located at 1330 S. Long Beach Blvd., Compton, in the 2nd Supervisorial District.

On November 24, 1998, ADPA suspended the two agreements which funded LANAC's "Main Artery" program at the Compton service site and offered relocation for the remaining residents to another appropriate treatment program.

Four OMC Agreements

Four of the affected agreements are administered by OMC, under three separate contract programs for primary care services: (1) Community Health Plan (CHP) Healthy Families Program (No. H-207165 effective July 1, 1998 through June 30, 2000); (2) CHP Medi-Cal Managed Care Program (No. H-209698 effective July 1, 1998 through April 30, 2000); and (3) PPP Program (Nos. 70403 and H-208751, effective October 1, 1996 and October 1, 1997, respectively, both through June 30, 2000).

Although there were a total of three service sites approved by the Board under the PPP Program, the only operational site was located at 9500 E. Artesia Blvd., Bellflower (the same service site for the CHP Healthy Families and Medi-Cal Managed Care Programs), in the 4th Supervisorial District.

On October 30, 1998, after it was determined that LANAC had closed its Bellflower site, OMC requested that LANAC post information diverting patients from this site to three other PPP Program service sites in the immediate area, along with a DHS 800 telephone number for additional clinic site information.

Attachment A provides additional information. Attachment B provides sample Notices of Termination.

Honorable Board of Supervisors
January 7, 1999
Page 4

Upon Board approval of the terminations, the Director or his designee will provide the Notices of Termination to LANAC.

County Counsel has reviewed and approved the Notices of Termination.

CONTRACTING PROCESS:

It is inappropriate to advertise terminations on the Office of Small Business' Countywide Website.

IMPACT ON CURRENT SERVICES (OR PROJECTS):

The Department has taken steps to assure that clients/patients seeking services at either LANAC site are referred to other alcohol/drug treatment and primary care service sites in Los Angeles County. Because this is the only non-profit American Indian agency providing these licensed service modalities, the Department will seek other culturally-appropriate service providers for contracts.

When approved, this Department requires three signed copies of the Board's action.

Respectfully submitted,

Mark Finucane
Director of Health Services

MF:ds

Attachments

c: Chief Administrative Officer
County Counsel
Executive Officer, Board of Supervisors

BLETAFK7.DS
ds:12/22/98

ATTACHMENT A

SUMMARY OF TERMINATION OF SIX AGREEMENTS WITH
THE LOS ANGELES NATIVE AMERICAN CENTER

1. Type of Services:

2. Agency Address and Contact Person:

3. Agreement Terms:

4. Approvals:

BLETAFK7.DS

ATTACHMENT B
Sample 1 of 2

(213) 240-8101

January 19, 1999

William Beckley, DHSc, MPH, Executive Director
Los Angeles Native American Center
9500 East Artesia Boulevard
Bellflower, California 90706

Dear Dr. Beckley:

TERMINATION OF COUNTY AGREEMENT NOS. H-208685 AND H-209318 FOR RESIDENTIAL PROGRAM ALCOHOL AND DRUG TREATMENT SERVICES AND NOS. 70403 AND H-208751 FOR PUBLIC/PRIVATE PARTNERSHIP PROGRAM PRIMARY CARE SERVICES WITH THE LOS ANGELES NATIVE AMERICAN CENTER

On October 21, 1997 and June 30, 1998, the Board of Supervisors approved Residential Program Agreement Nos. H-208685 and H-209318, respectively, for alcohol and drug treatment services. On September 24, 1996 and October 21, 1997, the Board approved Public/Private Partnership Program Agreement Nos. 70403 and H-208751, respectively, for primary care services. On January 19, 1999, the Board of Supervisors approved termination of the four referenced agreements.

This letter constitutes 30-day advance written notice of the County's termination for convenience of the four referenced agreements in their entirety, effective at midnight on February 18, 1999, as provided under Paragraph 1, Term, of Agreement Nos. H-208685 and H-209318; and Paragraph 2.G, Termination of Agreement, of Agreement Nos. 70403 and H-208751.

Thank you for providing services under these contracts with the County of Los Angeles. If you have any questions regarding this notice, please contact NAME, TITLE, of the PROGRAM at PHONE NUMBER.

Very truly yours,

Mark Finucane
Director of Health Services

MF:ds

c: Each Supervisor
Chief Administrative Officer
County Counsel
Executive Officer, Board of Supervisors
Auditor-Controller

ATTACHMENT B
Sample 2 of 2

(213) 240-8101

William Beckley, DHSc, MPH, Executive Director
Los Angeles Native American Center
9500 East Artesia Boulevard
Bellflower, California 90706

Dear Dr. Beckley:

TERMINATION OF COUNTY AGREEMENT NOS. H-207165 AND H-209698 FOR HEALTHY FAMILIES AND MEDI-CAL MANAGED CARE PROGRAM PRIMARY CARE SERVICES WITH THE LOS ANGELES NATIVE AMERICAN CENTER

On May 19, 1998 and June 30, 1998, the Board of Supervisors approved Healthy Families Program Agreement No. H-207165 and Medi-Cal Managed Care Program Agreement No. H-209698, respectively, for primary care services. On January 19, 1999, the Board of Supervisors approved termination of the two referenced agreements.

This letter constitutes 90-day advance written notice of the County's termination for convenience of the two referenced agreements in their entirety, effective at midnight on April 30, 1999, as provided under Paragraph 2.E, Suspension and Termination of Agreement, General, of Agreement No. H-207165; and Paragraph 2.A, Term, Termination, Re-Negotiation, and Suspension, of Agreement No. H-209698.

Thank you for providing services under these contracts with the County of Los Angeles. If you have any questions regarding this notice, please contact NAME, TITLE, of the PROGRAM at PHONE NUMBER.

Very truly yours,

Mark Finucane
Director of Health Services

MF:ds

c: Each Supervisor
Chief Administrative Officer
County Counsel
Executive Officer, Board of Supervisors
Auditor-Controller

Top Of Page