DATE: January 6, 2026
TO: Board of Supervisors
SUBMITTED BY: Joe Prado, Director, Department of Public Health
SUBJECT: Amendment No. 2 to Agreement with Health Management Associates, Inc.
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment No. 2 to Agreement No. 24-337 with Health Management Associates, Inc. to provide additional consultation and assistance to the Department of Public Health with completing development of the 10-year Strategic Plan, with no change to the term of June 18, 2024, through December 31, 2026, and increasing the maximum by $14,000 to a total of $331,843.
REPORT
There is no additional Net County Cost associated with the recommended action. Approval of the recommended action will increase the maximum compensation of the agreement with Health Management Associates, Inc. (HMA) by $14,000 to a total of $331,843. HMA would provide the Department of Public Health (Department) with additional consultation and training to complete development and implementation of the Strategic Plan. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the Department will not be able to obtain additional consultation services from HMA to operationalize and enhance implementation of the Strategic Plan within each of the Department’s divisions.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Upon execution of the recommended amendment, the maximum compensation for the agreement will increase by $14,000 to a total of $331,843. The additional consultation services to assist the Department with the Strategic Plan will be funded by a State grant: Future of Public Health. Sufficient appropriations and estimated revenues are included in the Department’s Org 5620 FY 2025-26 Adopted Budget and will be included in subsequent budget requests.
DISCUSSION:
On June 18, 2024, the Board approved an agreement with HMA for consultation services in developing the Department’s new 10-year Strategic Plan with a focus on providing essential services in the most cost-effective manner possible. HMA worked with the Department to confirm goals and initiatives, complete stakeholder engagement, develop a departmental framework, evaluate revenue sources, and create an official document of the Plan.
On March 11, 2025, the Board approved Amendment I to Agreement 24-337 with HMA to increase the maximum compensation and add to the scope of services provided by HMA. The additional consultation services provided assistance with navigating a complex California Department of Health Care Services (DHCS) application for the Department’s inclusion to the DHCS’s VRRP and development of the Strategic Plan. Participation in the VRRP will allow the County to transfer funds to the DHCS to be used as the non-federal share in claiming Federal Financial Participation dollars for Medicaid covered services. The eligible funds will be used by DHCS to draw down federal funds, which can then be disbursed to the Managed Care Plans and participating counties as additional funding.
Approval of the recommended amendment No. 2 will increase the maximum compensation upon execution and add to the scope of services provided by HMA. The additional consultation services will assist each of the Department’s divisions with development of an operational implementation plan that aligns with the 10-year Strategic Plan. HMA will meet with each of the divisions and provide leadership coaching and support to enhance implementation of the Strategic Plan.
REFERENCE MATERIAL:
BAI #41, March 11, 2025
BAI #74, June 18, 2024
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment No. 2 to Agreement with HMA
CAO ANALYST:
Ron Alexander