TITLE
Title
RENEW AND AMEND THE CONE HEALTH BEHAVIORAL HEALTH SERVICES AGREEMENT
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SPONSOR
Sponsor
Natalie Craver, Assistant County Manager
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BACKGROUND
Background
This agenda item approves an amendment to, and acknowledges the renewal of, the Cone Health Behavioral Health Services Agreement to operate in the Behavioral Health Center. Guilford County has an existing services agreement with Cone Health for operation of the County's Behavioral Health Center (BHC) on Third Street in Greensboro. The service agreement was approved in October 2019 for a five (5) year term that began when the center began operations which occurred in June 2021; the current term will accordingly end at the end of June 2026. Staff recommends taking the renewal option in the contract which will extend it for another five (5) year term, running from July 2026 to June 2031. The cost to the County for the first year of the renewal for Cone Health to operate and provide behavioral services in the facility will be $4,215,914, with an escalator applying in future years. The funding for this Services Agreement is part of the County's Behavioral Health "Maintenance of Effort" funding that is budgeted and can be allocated to a range of Behavioral Health services including urgent care, facility-based, outpatient, and substance use recovery services for adults and youth.
County and Cone Health staff have also identified some points in the current services agreement that, if amended, will help improve operations of and client experience at the BHC and across the broader behavioral health system in the County. Staff recommend making those amendments at this time so they are effective for the entire term of the renewal, starting on July 1, 2026.
The County also leases the facility to Cone Health for $1 per year for a term that runs concurrently with the services agreement term. The lease outlines the County's and Cone's respective responsibilities for ensuring the facility is maintained and functional including security arrangements. The County is responsible for external site security and Cone Health is responsible for providing internal security, for which the County pays Cone Health. Staff have recommended budgeting $437,750 for this cost in FY 2027. By accepting the renewal of the services agreement, the County and Cone Health will also be accepting the renewal of the lease term as outlined in the lease agreement with no further action needed.
Total cost for the Services Agreement plus the County's payments for Cone to provide security inside the facility will be $4,653,664 in FY 2026-27.
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BUDGET IMPACT
Budget Impact
FUNDING COMMENSURATE WITH ADOPTION OF FY 2026-27 BUDGET
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REQUESTED ACTION
Requested Action
Authorize staff to take any and all necessary steps to execute the amendment to, and acknowledge renewal of, the Cone Health Behavioral Health Services Agreement for one additional five year term to run from July 2026 to June 2031 with a FY 2026-27 funding amount of $4,215,914, and acknowledge the renewal of the lease of the Behavioral Health Center to Cone as outlined in the lease agreement.
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