HomeMy WebLinkAboutResolutions - 1994.08.18 - 24003MISCELLANEOUS RESOLUTION #94243 August 18, 1994
BY: GENERAL GOVERNMENT COMMITTEE, DONALD W. JENSEN, CHAIRPERSON
IN RE: DEPARTMENT OF HUMAN SERVICES/COMMUNITY MENTAL HEALTH -
AMENDMENTS TO THE 1993/1994 FULL MANAGEMENT CONTRACT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS pursuant to Miscellaneous Resolution 4t93092, the
Oakland County Board of Commissioners authorized the execution of
the Full Management Contract between the Michigan Department of
Mental Health (MDMH) and the Oakland County Community Mental
Health Services Board (CMH); and
WHEREAS included in the authorizing resolution is a
provision requiring Board of Commissioner approval of contract
amendments; and
WHEREAS the MDMH has recommend changes to the Full
Management contract language; and
WHEREAS the MDMH recommendations have been reviewed by
Community Mental Health, Human Services, Management and Budget,
and Corporation Counsel staff, and modified to fit the particular
needs of Oakland County as delineated in the attached agreement;
and
WHEREAS the Oakland County Community Mental Health Services
Board approved, on July 28, 1994, the contract language submitted
by staff.
NOW THEREFORE BE IT RESOLVED that the Oakland County
Community Mental Health Services Board is authorized to execute
the Full Management Contract amendments as developed by staff and
approved by the CMH Board on July 28, 1994.
Chairperson, on behalf of the General Government Committee,
I move adoption of the foregoing resolution.
Z1104.4e
GE ERAL GOVERNMENT COMMITTEE
rev. 7/27/94
MICHIGAN DEPARTMENT OF MENTAL HEALTH/
OAKLAND COUNTY COMMUNITY MENTAL HEALTH SERVICES BOARD
CONTRACT FOR FULL MANAGEMENT
PART I
A. General Provisions
1. The Michigan Department of Mental Health (hereinafter "Department") and
the Oakland County Community Mental Health Services Board (hereinafter
"Board"), agree to the provisions of this Contract for the purpose of ensuring
the provision of services to identified populations according to standards
and policies as specified in this Contract.
Notwithstanding any provisions in this Contract, the Department shall retain
its constitutional and statutory responsibility for providing Mental Health
services for county residents with the Board acting under contract with the
State. Nothing in this Contract shall require the County of Oakland or its
Board to commit funds in excess of the local match requirements
established in Act 258 of the Public Acts of 1974, as amended (hereinafter
"Michigan Mental Health Code").
2. This Contract is entered into under the authority granted by Sections
116(e)(ii) and (j) and Sections 226(g) and 228 of the Michigan Mental
Health Code, as amended. Provisions of that Act, all rules promulgated and
adopted under that Act and applicable state and federal laws shall govern
the expenditure of funds and provision of services. The Board enters into
this Contract under the authority granted in Section 226(g) and 228 of the
Michigan Mental Health Code and by Oakland County Board of
Commissioners Miscellaneous Resolution 93092, or pertinent subsequent
resolutions authorizing full management status.
3. This Contract shall not be construed to establish any employer-employee
or principal-agency relationship between employees of the Board and the
Department, nor between any of the Board's subcontractors or
subcontractor's employees and the Department.
4. The Board shall have the freedom to arrange for the provision of Mental
Health services as it deems necessary and appropriate, in accordance with
Oakland County Board of Commissioners procedures. The Board may
subcontract for the provision of any of the services specified in this
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Contract. The terms and conditions of its contracts shall be within the
exclusive discretion of the Board and not subject to the review of the
Department. The Board shall ensure that all subcontracts are consistent
with the provisions of this Master Contract and the affirmative action
requirements as set forth in Part I, B, Paragraphs 5 and 6.
In the event a subcontract is determined to be inconsistent with this Master
Contract, the provisions of the Master Contract shall prevail.
5. This Contract shall commence on October 1, 1992 and shall constitute a
continuing contractual arrangement unless amended or terminated
according to the provisions for amendment or termination. The budget and
fiscal provisions of this Contract shall be adjusted as funding authorizations
issued by the Department change. An initial adjustment shall be made to
reflect the DMH authorizations issued at the beginning of each fiscal year.
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The Department shall respond in writing to the submission of said
adjustments covering a new fiscal year within thirty (30) days of submission
of the document, signed by the Board, to the Department's Area Manager.
The response shall either approve the adjustments or identify specific
reasons for failure to approve. Failure to respond within thirty (30) days
shall constitute approval of the adjustments.
6. With the exception of those amendments described in Part I, C, 3, below,
amendments may be made only by written agreement of the Department
and the Board acting under the authority of Oakland County Board of
Commissioners Resolution. A request for such amendment must be
received no later than forty-five (45) days following the end of the State
fiscal year. Failure by any party to approve or deny in writing a request for
amendment within thirty (30) days of receipt of such request shall constitute
approval of the amendment.
6a. The Board shall review and resubmit to the Department Part Ill -
Funding of its Summary of Projected Funding on June 30 of each
fiscal year. This submission is intended to reflect adjustments to the
projected expenses and revenues of the Board under the Contract
based on program revisions approved by the Board and actual
utilization of facilities, and may amend the material financial
considerations contained in the Contract. The submission of June 30
shall include a projection of total CMH lapse. Should circumstances
substantially alter the June 30 expenditure projection, the Board will
submit an amendment to reflect this. The final amendment will
constitute the Board's final projection of lapse.
l
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Total Board expenditures of Department funds are limited by the
amount of the DMH Maximum Funding Authorization Section 2, Part
A of the Fiscal Addendum to this Contract) contained on the final
Summary of Projected Funding. Should total actual expenditures
(based on the parties' final cost-settlement for the previous year)
deviate from the total projected expenditures contained in the final
amendment by more than 20%, the Board will develop, with the
assistance of the Department, a plan to remediate the Board's
projection methods. Should this deviation continue in the next year,
cash flow shall be adjusted to actual expenditures. The Department
will notify the Board thirty (30) days in advance of any such action.
7. A written request for a compliance review of provisions of this Contract may
be initiated by either party to the Contract. Such a request shall include a
statement of specific areas of alleged non-compliance. A written response
to such a request shall be provided by certified mail within thirty (30)
calendar days of receipt of the request. The response shall either (a)
present facts which refute the allegation of non-compliance, or (b) present
a proposal for remediation which may include amendment to the Contract.
Failure to respond in writing within thirty (30) days shall be deemed as
verification and acceptance of the allegation. Should the response be
unsatisfactory, a request for a hearing involving the Department Director,
the Board Director and other parties as may be designated by either will be
held. Such hearing shall be scheduled within thirty (30) days of receipt of
the request. The results of this hearing shall be provided in writing to both
parties within fifteen (15) days of the hearing.
8. This Contract may be terminated at any time by either party by giving one
hundred twenty (120) days notice in writing to the other party by certified
mail or within a time frame mutually agreed-upon. Such termination shall
not relieve either party of any obligations incurred prior to the effective date
of such termination.
It is mutually agreed that if total State funding for all programs and
populations for the Board, without regard to inter-county transfers of
funding for residential services, drops below either (a) 95% of the
previous year's full-year cost funding, or (b) the final State authorized
funding level for the year of inception of this Contract (Fiscal Year
1992-93), as adjusted for inflation based on the national Consumers
Price Index, whichever is greater, then this shall cause the Contract to
cease within 120 days or a time mutually agreed upon, unless
contraindicated by the Oakland County Board of Commissioners. [Changes
are ours, not DMHJ
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9. All liability, loss, or damage as a result of claims, demands, costs, or
judgments arising out of activities to be carried out pursuant to the
obligation of the County of Oakland or the Board under this Contract shall
be the responsibility of the County and the Board, and not the responsibility
of the Department, if the liability, loss, or damage is caused by, or arises out
of, the actions or failure to act on the part of any County or Board member,
employee, or agent, provided that nothing herein shall be construed as a
waiver of any governmental immunity the County, the Board, their agencies
or employees has, as provided by statute or modified by court decisions.
10. All liability, loss, or damage as a result of claims, demands, costs, or
judgments arising out of activities to be carried out pursuant to the
obligations of the Department under this Contract shall be the responsibility
of the Department and not the responsibility of the County or the Board if
the liability, loss, or damage is caused by, or arises out of, the action or
failure to act on the part of any Department employee or agent, provided
that nothing herein shall be construed as a waiver of any governmental
immunity the State, its agencies or employees has, as provided by statute
or modified by court decisions.
11. All costs, including reasonable attorney fees which the County and/or the
Board may incur in the event that the courts of this state hold that a
co-employer status exists with reference to persons employed in
non-inpatient residential facilities under contract with the Board, shall be the
responsibility of the Department and not the responsibility of the County or
the Board, provided, that said costs are attributable solely to that period of
time prior to the transfer of contracts for such residential facilities from the
State of Michigan to the County and the Board.
12. Both parties recognize that the Department will abide by and enforce the
operating procedures contained in the State Facility/Board Agreement(s),
and the said Agreement(s), when agreed upon by the Department, State
Facilities/Centers, and the Board, will be appended to this Master Contract
between the Department and the Board.
The operating procedures contained in these agreements shall establish the
Board as the single point of entry to and exit from State facilities/centers
and shall include provisions for all of the following:
a. Evaluating the appropriateness of an individual for admission and
preparation of an alternative treatment report.
b. Serving as the single point of entry to a state hospital/ center.
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c. Participation by the Board in providing treatment.
d. Discharge of residents at the time and in the manner determined by
the Board.
e. State hospital or center/Board agreements shall provide a procedure
for Board review of recipient rights formal complaints and incident
reports filed by or on behalf of Oakland County patients in the
Department inpatient facility or residential services center
(hereinafter "hospital/center") or its contracted services. [Changes
are ours, not DIWH]
f. All physicians employed by or under contract to the Board shall have
the right to be accorded admitting, treatment and discharge privileges
at State managed facilities/ centers in accordance with medical staff
by-laws.
13. In the event that circumstances occur that are not reasonably foreseeable,
or are beyond the Board's or Department's control, which substantially
reduce or otherwise interfere with the Board's or Department's ability to
provide or maintain specified services or operational procedures for its
County, the parties to the Contract shall immediately notify the other party
and shall negotiate a revision of the Summary of Projected Funding
reflective of the reduction which shall become an amendment to this
contract. Examples of such occurrences include, but are not limited to,
default of subcontracts, acts of God, damage to facilities, employee strikes,
and ruling(s), order(s) and/or opinion(s) of a State or Federal Court.
14. Department policies to be implemented by the Board during the life of the
Contract shall be limited to applicable Federal and State statutes and local
ordinances and policies enumerated in this Contract, including its
attachments and in the CMH/State hospital or center contracts.
15. In the event that a new Fiscal Addendum to this Contract is not signed by
the end of the State fiscal year of the current Addendum, the terms,
conditions and funding levels contained in the current Fiscal Addendum
attached to this Contract shall remain in effect, subject to legislative
appropriation for ninety (90) days following issuance of the Board's base
continuation allocation and appropriated economic increases applicable to
the new fiscal year. By mutual written consent, this Fiscal Addendum, in
whole or in part, may be extended further. The conditions in the contract
governing fiscal year closing and cost settlement shall pertain if the Contract
is continued.
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16. Inquiries and requests concerning the terms and conditions of this Contract,
including requests for amendment, should be directed by the Board to the
attention of the Department's Area Manager serving the Board's area.
Performance and expenditure reports should be submitted to the
Department of Mental Health, Finance Division, with a copy to the Area
Manager, and a copy to the Department's Bureau of Community Mental
Health Services.
17. Notwithstanding any provision of this agreement to the contrary, this
Contract shall not be construed or interpreted to permit a violation of the
Consent Judgment of July 29, 1991, entered in the matter of Oakland
County v State of Michigan Department of Mental Health, et. al., Oakland
Circuit Court Case No. 85-305141 CZ, nor shall it constitute a waiver of the
provisions of said judgment by Oakland County. Further, it shall not be
construed to allow a violation of Const. 1963, art. 9, 29.
B. Board Assurances
The Board agrees:
1. To ensure the provision of services to populations designated in Part II of
this Contract. The populations to be served shall include:
a. Individuals located in the service area of the Board who are not
residents of Department state inpatient facilities/ centers or
Department contracted residential settings; and
b. Individuals located in Department state inpatient facilities/centers or
Department contract residential settings for whom the Board (County)
is financially liable for the cost of care under P.A. 258 of 1974, Sec.
306.
2. To comply with the operational procedures specified in Part III of this
Contract.
3. To immediately notify the Department of modifications in provision of
services and compliance with operational procedures under the following
conditions:
a. Action by the Oakland County Board of Commissioners which
removes the Board's funding for or authority to provide specified
services.
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./
b. Action by the Oakland County Board of Commissioners which
reduces the Board's funding level below that required to maintain
specified services in the Board's service area.
c. Action by Federal or local funding sources which removes funding or
reduces the Board's funding levels below that required to maintain
specified services in the Board's service area.
In the event of any or all of the conditions specified in "a" through "c"
occurring, the Board shall submit a revision of its Summary of Projected
Funding reflective of the reduction, which shall become an amendment to
this Contract. Such amendments shall be received by the Department no
later than forty- five (45) days following the end of the contract period.
Failure by the Department to approve or deny the request within thirty (30)
days shall constitute approval.
4. To permit authorized representatives of the Department or a properly
identified representative of a DSS Medicaid Review Office, to make such
review of the records of the Board as may be deemed necessary to satisfy
audit purposes.
5. That no otherwise qualified person shall be excluded from participation in,
be denied the benefits of, or be subject to discrimination in any programs
or activities solely on the basis of race, color, national origin, religion, age,
sex, marital status, physical or mental handicap, or ability or inability to pay
therefor. The Board agrees to analyze service delivery by age, race, sex
and physical handicap, to identify barriers to service delivery for those
groups found to be under served, and to prepare a plan for removing such
barriers.
6. That no employee or applicant for employment shall be subjected to
discrimination with respect to hiring, recruitment, advancement or discharge
or in the terms, conditions or privileges of employment, or a matter directly
or indirectly related to employment solely because of religion, race, color,
national origin, age, sex, height, weight, marital status, record of arrest
without conviction, or physical or mental handicap, and that affirmative
action will be taken to assure equal employment opportunity for Blacks,
Hispanics, American Indians, Asians, women and handicappers where they
are under utilized, by making all good-faith efforts to comply with the goals
contained in Oakland County's approved Affirmative Action Plan.
7. To comply with program and fiscal standards identified in Attachments A
and B, which are attached to and made a part of this Contract.
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8. To furnish to the Department statistical and other management information
as designated in Parts ll and III of this Contract. Information concerning
services provided and expenditures shall be submitted no later than thirty
(30) days following the end of each reporting period. A preliminary written
estimate of anticipated accounts payable to the Department or accounts
receivable from the Department shall be submitted within sixty (60) days
following the end of the contract year. The final year-end report shall be
submitted within ninety (90) days following the end of the State's fiscal year.
The reporting requirements for grant projects shall be specified in the
agreement governing the grant, which shall be appended to and become
part of this Contract.
9. To ensure the collection of information consistent with the DMH
INFORMATION REQUIREMENTS contained in this Contract and its
Attachments. The standard reports included as Attachment B to this
Contract shall be submitted on the dates indicated on the report form.
Other reports utilizing the Information requirements document may be
specifically requested with at least forty-five (45) days' notice from the
Department.
10. To submit a written report to the Department explaining deviations from the
Contract with regard to services provided or expenditures by
non-Department agencies within sixty (60) days of the end of each reporting
period. This report must present a proposal to bring performance and/or
expenditures into conformance with the total contractual commitment or
request a revision to the Contract, if:
a. The deviation is projected to result in a deviation in excess of ten
percent (10%) from the total projected end of year expenditures.
b. The deviation is projected to result in a deviation in excess of five
percent (5%) from projected end of year expenditures for Board
Administration.
The Department shall approve or disapprove the Board proposal for
remediation in writing within thirty (30) days of receipt of the Board's report.
If approval or disapproval is not received within thirty (30) days, the
proposal shall be deemed approved.
A report of deviation shall not be construed as a determination of
compliance or non-compliance with this Contract.
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C. Department Assurances
The Department agrees:
1. To provide funds to the Board, subject to legislative appropriation and
availability of funds, as stipulated in the Fiscal Addendum to this Contract
for assuring that services designated in Part II and the Fiscal Addendum of
this Contract are provided.
2. To ensure funding stability, subject to the availability of legislatively
appropriated and allocated funds, to the Board during the life of the
Contract. The Department shall immediately notify the Board of
modifications in funding commitments in the Contract under the following
conditions:
a. Action by the State legislature which removes the Department's
funding for, or authority to provide for, specified services.
b. Action by the State legislature which reduces the Department's
funding level below that required to maintain services on a Statewide
basis.
c. Action by the Governor pursuant to Const. 1963, art. 5, 320 which
removes the Department's funding for specified services, or which
reduces the Department's funding level below that required to
maintain services on a Statewide basis.
d. A formal directive by the Governor, or Department of Management
and Budget on behalf of the Governor, requiring a reduction in
expenditures below that incorporated in contracts.
In the event of any of the conditions specified in "a" through "d" occurring,
the Board shall submit a revision of its Summary of Projected Funding
reflective of the funding reduction, which shall become an amendment to
this Contract.
In the event of a reduction of funding to the Board, the Board shall, subject
to the provisions of Partl, Section A, paragraph 8, decide how the reduction
is to be implemented within its programs, within policy established in the
P.A. 258 of 1974 and its Rules, except that:
i. Reduction of services underwritten by funds allocated by the State
legislature for demonstration and prevention grants shall be
negotiated with the Department.
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ii. Funding in the base for continuation of demonstration projects shall
be governed by Department Guideline 1V-H-007-0001.
3. To permit the Board to redirect funds within target populations (M1-A, MI-C,
DD, Other) among program elements as clients move to more appropriate
treatment settings, with the exceptions noted as Categorical Funding in
the Summary of Projected Funding. However, such Categorical
Funding shall be automatically rolled over into the Board's base
funding after three years, unless contraindicated by legislative
appropriations or conditions of original funding. [NOTE: This last
sentence is folded back into the body of the Contract from our last year's
Fiscal Addendum, since Categorical Funding is no longer tabulated in the
Fiscal Addendum; "after three years" was omitted by oversight from last
year's contract.]
The Board may redirect Department funds, with the exception of those
funds identified in the Summary of Projected Funding, among target
populations (M1-A, MI-C, DD, Board Administration and Other Populations)
as changing needs of the Board's residents require response from the
Board.
If movement of clients and the funds associated with their care results in
cost savings, the Board may utilize funds saved for the purpose of
expanding or improving the Board's program, as contained in this Contract,
during the life of this Contract. Redirected funds and cost savings realized
as a result of movement of clients to more appropriate treatment settings
shall be included in the Board's base program for the purpose of planning
for all subsequent years.
Additional funds awarded to the Board beyond the base funding of this
Contract as indicated in the Fiscal Addendum shall not be restricted for
special Categorical programs by the Department, unless so mandated by
the State legislature or accepted by the Board for a specific program or
population.
Funds authorized to the Board by the Department and identified as
Categorical Funding in the Summary of Projected Funding shall not be
redirected without prior approval of the Department.
4. To provide ongoing assistance to the Board in the implementation of this
Contract.
5. That it will not establish any direct funding to an agency or individual,
absent legislative mandate, to serve Oakland County residents, nor with any
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.;
Oakland County family, circumventing the Board. The Department certifies
that all such contracts which it held prior to the inception of this Contract
have, as of that date or a mutually agreed upon date, been terminated or
transferred to the Board. This provision does not apply to contracts held by
facilities/centers of the Department, for purchase of services consistent with
the statutory function of said facilities/centers.
6. That it agrees to cooperate and assist in the Board's effort to pursue and
collect funds from third parties, whenever possible. The Department
agrees to supply to the Board at the time of completion, copies of the
State hospital/center's ability-to-pay determination on each Oakland
County resident admitted to a State hospital or center, and to inform
the Board of any claims on the financial assets of consumers and their
families and of any appeals by consumers or their families.
6a. To ensure that the Department will pursue all possible first- and third-
party reimbursements.
6b. To provide to the Board rates for State-managed services no later than
the end of the first quarter of the contract year. Rates shall be issued
governing the net rate paid by full management boards and the local
share of hospital/center billings.
6c. That the protection and investigation of rights of recipients while on
inpatient status at Department hospitals/centers shall be the
responsibility of the Department of Mental Health, Office of Recipient
Rights. As provided in Section 12(e), page 4 of this Contract, the
Department's Office of Recipient Rights shall share appropriate
information on investigations related to the Board residents in
accordance with the confidentiality provisions of the Michigan Mental
Health Code.
6d. To conduct any of the following reviews/audits of the Board during the
life of this contract:
a. Financial/compliance audit of the Board.
b. Review of the Board's program for the purpose of maintaining
Medicaid provider eligibility and/or the eligibility of specific
programs for Medicaid reimbursement.
c. Review of the Board's reimbursement system, including rate-
setting methodologies and reimbursement practices.
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d. Review of the Board's program for the purpose of certifying its
Children's Diagnostic and Treatment Center.
e. Review of the Board's program to determine compliance with
any of the Standards/Guidelines identified in Attachment A of
this Contract.
Other reviews and/or audits shall be conducted according to the
following protocol:
a. A mutually acceptable date for the review/audit shall be
negotiated.
b. The Guideline and/or instrument to be used to review the Board
and the criteria for assessing the Board's performance shall be
provided to the Board at least sixty (60) days prior to the review,
unless the Board agrees otherwise.
c. The following information shall be provided at least sixty (60)
days prior to the date of the review, unless negotiated
otherwise:
1. A list of documents to be reviewed.
2. Identification of Board staff to participate and estimate of
time required of staff.
3. An estimate of the time required for the review/audit.
All reviews/audits shall provide to the Board:
a. An opportunity to discuss andlor dispute any aspect of the
preliminary report prior to dissemination of any report of the
review within or outside the Department.
b. An appeal regarding findings contained in the final report.
This section shall not be construed as preventing the Board from
agreeing to work with the Department, on short notice, on an
emergency review under extraordinary circumstances.
7. That it shall be financially responsible for all audit exceptions pertaining to
State-provided services which occurred prior to the date of this contract.
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,
8. Nothing in this Contract shall negate the State of Michigan's ultimate
constitutional responsibility to provide appropriate treatment for those
persons adjudged to be a threat to themselves or others, in accordance with
the provisions of P.A. 258 of 1974.
PART II: SPECIFICATION OF SERVICES, FUNDING LEVELS
AND RELATED REPORTING REQUIREMENTS
Section 1 - Service Plan
Service Plan funding levels are as set forth in the Fiscal Addendum attached to this
Contract.
Section 2 - Funding Levels and Reporting Requirements
A. Total Obligations:
Total funding obligations are set forth in the Fiscal Addendum attached to this Contract.
B. Cash Advances, including Medicaid Advances:
Cash advances and Medicaid advances shall be made as set forth in the Fiscal
Addendum attached to this Contract.
The Medicaid advance amount will be adjusted to reflect any change in the total
amount of Title XIX Medicaid (state and federal) revenues in the most recently
submitted Summary of Projected Funding which is at least $100,000. Any decrease
to this advance will be deducted from the regular monthly cash advances to the Board
and the Department will notify the Board to adjust its Medicaid cash advance liability. Any
increase to the Medicaid advance will be paid to the Board, and the Department will
advise the Board to increase its Medicaid cash advance liability.
The Department will also provide advances monthly, subject to availability of funds or
conditions identified in Part I. The amount of each advance will be determined in
accordance with the Board's Summary of Projected Funding. This amount will consist
of 1/12 of Federal Medicaid as reflected in the Contract plus 1/12 of the total projected
Department funding, which includes the State share of Medicaid. These cash advances
will be reduced by the amount of gross Medicaid/Personal Care payments received since
the previous Department advance of funds.
This advance will not be affected by the fiscal year change. The Board's October
advances will, therefore, be reduced by actual Medicaid payments processed by
DSS/DMH during the month of August, and so on.
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,
Advances are conditional upon receipt of revisions to the Summary of Projected
Funding on June 30, and a final expenditure report by December 31. Should the
Board fail to pay to the Department the full amount of the 116 Medicaid advance by
November 1, monthly advances will stop until the amount of the payable has been
recovered.
Section 3 - Funding Obligations for State-Operated Services
A. Funding obligations shall be as set forth in the Fiscal Addendum attached to this
Contract.
The Board may withhold payment for days of care provided to specified individuals
when such care is delivered in a fashion which is contrary to the provisions stated
in either the Master Full Management Contract or the hospital/center subcontracts.
Payments shall not be withheld until the Board has notified the hospital/center
director of specific areas, related to a specified client, in which the Contract or
subcontract has been violated. A copy of this notification shall be forwarded by the
Board to the Department's Area Manager within five (5) days of the point of non-
payment.
B. The Department commits itself to a good-faith effort to achieve equitable funding
for Oakland County in comparison with other counties, based on consideration of
per-capita funding and other relevant factors.
C. This Contract shall be reopened and the funding base revised in the event that the
Board and/or the Department discovers data which supports such a revision.
D. The Department agrees that when State-managed services are transferred to the
Board, the State shall transfer dollars representing the negotiated amount that
reflects the costs necessary to operate the program, including but not limited to,
administrative and support costs, day programming, transportation, recipient rights
protection, public relations costs, one to one staffing, power and other utility costs,
exception payments, and day program funding for residential clients.
Any and all programs and services currently under development by the Department
for Oakland County residents shall be transferred to the Board with full funding
folded into the base of this Contract.
Any and all cost increases, either economic or salary, made to State- managed
services or employees shall also be made available to the Board if funding is
appropriated.
E. Changes in State-operated hospitals/centers' per diem rates will be accompanied
by a corresponding change in State allocation to the Board's Contract base.
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F. All public mental health funds designated for direct or indirect treatment,
administration, public relations, recipient rights or other support activities for
Oakland County residents shall be provided by the Department solely to the Board.
G. The Department will arrange for the Board to receive notice from the Center for
Forensic Psychiatry as soon as possible when the status of a forensic client may
change to a probated order. It is the Department's intent that at least thirty (30)
days' prior notice shall be given. The Board is liable for the State share of
inpatient costs under the probated order when the client is receiving service from
a hospital under contract to the Board, except that such liability shall be waived for
up to thirty (30) days from the date of receipt by the Board of the notice described
in the preceding sentence. If this waiver is to be activated by a the Board, it will
provide appropriate documentation to its Area Manager demonstrating less than
thirty (30) days' notification.
The Board agrees to initiate an effort with the probate courts and prosecutors in
its catchment area within ninety (90) days after signing the Contract to develop
agreements, providing that those agencies notify and involve the Board in
arranging services for persons being considered for a probated order, as well as
persons in need of aftercare services.
H. The Board shall have the right to admit its clients to State hospitals/centers outside
of its usual catchment areas for persons requiring specialized services not
available at Clinton Valley Center or Fairlawn Center, with authorization from the
Department.
I. Full management bills for services provided by the Department will not be payable
by the Board until thirty (30) days after the end of the month in which services
were rendered. Payment for State-operated services shall be made at the full
management billing rate in effect for the current State fiscal year based upon a
bill which identifies the individuals served and days of care provided at a fixed net
State cost per day. The Board shall authorize payment of undisputed bills within
thirty (30) days of receipt of the bill, or thirty (30) days following receipt of the
advance, whichever is later. Failure to authorize payment of undisputed billings
when due will result in delayed advances.
J. The Board agrees to authorize payment of the County match portion of the net
cost of services provided to persons who are its residents as defined by Section
306 of P.A. 258 of 1974. Authorization of undisputed bills or undisputed portions
of bills will be made within thirty (30) days of receipt of the billing. The Board
agrees to identify to the Department disputes concerning bills on a case-by-case
basis within thirty (30) days of the bill, and to work with the Department in resolving
these disputes on a timely basis. The Department may refer to the Department
of Treasury for collection all bills which are both undisputed and overdue.
-Page 15-
Section 4 - Cost Settlement
With regard to funds expended for provision of services covered by the Board's
Summary of Projected Funding, the Department will cost-settle with the Board,
subject to Contract limitations, based upon the Board's reported actual net
matchable costs. Expenditure of total State funds may not exceed the DMH
Maximum Funding Obligation - Matched Services (from the Summary of
Projected Funding) as included in the Board's final Contract amendment. Net
matchable costs shall be identified in accordance with the Community Mental
Health Financing Guidelines published by the Department pursuant to
Administrative Rules R.2038 and R.2044, as revised in September, 1993 and
contained in Attachment A of this Contract. Matchable expenses are subject to
audit by the Department or by the Auditor General.
End-of-the-year cost settlements shall be considered final and not reopened for
negotiation in subsequent fiscal years as it regards the State share of cost of
services, except where audit finds the basis for cost settlement to be inaccurate
or out of compliance with Department guidelines, or where a prior year's cost
settlement still subject to DMH audit is re-opened by the Board for
negotiation in the current year, based on circumstances which shall be
submitted by the Board in writing to the Department.
PART Ill: OPERATING PROCEDURES
Financial Management Procedures
1. Payable for Medicaid Fund Advance:
The Medicaid advance is provided in addition to the monthly advance of
state and federal funds to the Board described below This advance
does not increase the Department's commitment or establish any additional
spending authority in excess of the total amount indicated in the last
approved Summary of Projected Funding under the terms of this
Contract
This advance does not increase the Department's commitment or
establish any additional spending authority in excess of the total
amount indicated in the last approved Summary of Projected Funding
under the terms of this Contract This advance shall be due and
payable to the Department as of the first day of November for all
amounts advanced to the Board for the previous twelve (12) months
ending September 30th of the current year.
-Page 16-
Upon the date of payment of this advance, the Department will issue
a new Medicaid advance for the twelve (12) months beginning October
1 of the current year.
2. Accounting and Auditing Standards, Principles and Procedures:
Expenditure reports are to reflect the accrual of client-based revenues. The
following documents should guide Board accounting procedures:
a. Governmental Accounting and Financial Reporting Standards as of
May 31, 1990 published by Governmental Accounting Standards
Board (Third Edition).
b. Audits of State and Local Governmental Units, issued by the
American Institute of Certified Public Accountants in 1989.
3. Fiscal Auditing:
a. The Board will ensure that a fiscal audit of each of its service
agencies identified by the Board and the Department is performed in
conformance with the Department's CMH Financing Guidelines, and
the results submitted to the Department, if requested.
b. The Board agrees to permit the Department to conduct an annual
financial audit of the Board's fiscal records and/or submit an
independent audit for this contract period.
4. County Appropriation Process:
The appropriation by the County Board of Commissioners and the
appropriation process, as it relates to the responsibility of the
CountyExecutive and the Board of Commissioners, shall be in accordance
with Public Act 2 of the Public Acts of 1968, as amended, known as the
"Uniform Budgeting and Accounting Act," and the General Appropriations
Act Resolution adopted by the Oakland County Board of Commissioners.
Signatures:
Chairperson, Oakland County Community Date
Mental Health Services Board
Director, Michigan Department of Mental Health Date
-Page 17-
Concurrence:
Chairperson, Oakland County Board of Commissioners Date
County Executive, Oakland County Date
Director, Oakland County Community Date
Mental Health Services
-Page 18-
Fiscal Addendum
Michigan Department of Mental Health/
Oakland County Community Mental Health Services Board
CONTRACT FOR FULL MANAGEMENT
It is agreed among the parties, the Michigan Department of Mental Health ("Department")
and the Oakland County Community Mental Health Services Board ("Board"), that the
following constitutes the fiscal provisions for State fiscal year 1993-94 related to the
CONTRACT FOR FULL MANAGEMENT.
Section 1. Service Plan
The parties agree that the Summary of Projected Funding, which is attached to and
made a part of this Contract, represents the Board's plan of service and contains
funding commitments of the Department and the Oakland County Community
Mental Health Services Board.
Section 2. Funding Levels and Reporting Requirements
A. Total Obligations
The parties agree that decisions and actions outside of the terms of the Contract may
influence the level of funding included on lines B through F of the Summary of
Projected Funding. Changes in this funding which occur during the Contract period
will be reported to the Department as part of required Contract amendments.
The parties agree to obligate their respective share of funds for matched services in
accordance with the Summary of Projected Funding. The Department's obligation
shall be the DMH Maximum Funding Obligation - Matched Services (from the
Summary of Projected Funding). The Board's commitment shall be the Total
County Obligation (from the Summary of Projected Funding).
This obligation includes State funds, which may be used for specified purposes
only. These funds are described in the section of the Summary of Projected
Funding entitled CATEGORICAL PROGRAMS.
Specifically, the Department agrees to pay the Board, on a net matchable basis, the State
share of non-reimbursed expenditures not to exceed the Maximum Funding Obligation -
Matched Services which is established in this Contract, for formula funding. The Board
agrees to pay its share of non-reimbursed expenditures or the balance of formula-fund
expenditures, whichever is higher.
-Page 19-
• t. .
B. Medicaid Advances
The Department agrees to provide the Board with an advance equal to 1/6th of the total
Title XIX revenues (Federal and State share) as reflected in the attached approved
Summary of Projected Funding (total of items G 2b plus G 2c plus G 3b plus G 3d).
Section 3 - Funding Obligations for State-Operated Services
The parties agree that the Board shall authorize payment for the actual number of days
of care provided to its residents in State hospitals/centers, up to the maximum funding
obligation aggregated by population, identified as follows:
Contract Base
Vulnerability Maximum Funding
Factor Obligation
MI ADULTS:
Inpatient: 88,283 Days/$20,429,503
Residential: 69,503 Days/$ 5212.725
$25,642,228 x 1.05 =
MI CHILDREN:
Inpatient: 19,339 Days/$ 6,288,031
Residential: 22,080 Days/$ 2.612.883
$ 8,900,914 x1.05 =
DEVELOPMENTALLY DISABLED:
Inpatient: 10,053 Days/$ 1,337,326
Residential: 254,135 Days/$24.096.904
$25,434,230 x 1.05 =
Signatures:
$26,924,339
$ 9,345,960
$26,705,942
Chairperson, Oakland County CMH Services Board Date
Director, Michigan Department of Mental Health Date
-Page 20-
Concurrence:
Chairperson, Oakland County Board of Commissioners Date
County Executive, Oakland County Date
Director, Oakland County CMH Services Date
-Page 21-
1,113,846 517,105***
20
1,455,096 517,105
1,309,586 225,613
306,800 **
340,888
306,800
• 14.
07/28/9409:45 AM
PART III - FUNDING
CATEGORICAL PROGRAMS
CMH BOARD: OAKLAND
FY: 1993-94
Amendment #3
OBRA OBRA 93
ACTIVE PLACE- CRITICAL
TX MENT NEEDS
(B) DMH AUTH LETTER DATED: * * 12/09/93
(C) DMH FUNDING AUTHORIZATION 476,867 156,461 263,088
(0) EST. CLIENTS SERVED THIS YEAR 6 260
(E) PROJ ACTUAL GROSS EXPENDITURE 476,867 156,461 292,320
(F) PROJ ACTUAL STATE EXPENDITURE 476,867 156,461 263,088
*Total Categorical Funding for OBRA; includes $6,714 for 89-90 Obra Placement Categorical Funding on DMH Authorization
93 94 92-93
COMMUN COMMUN COMM MODEL ll
DEMAND DEMAND INPATIENT WAIVERS
6/15/94
(B) DMH AUTH LETTER DATED:
(C) DMH FUNDING AUTHORIZATION
(D) EST. CLIENTS SERVED THIS YEAR
(E) PROJ ACTUAL GROSS EXPENDITURE
(F) PROJ ACTUAL STATE EXPENDITURE
-* Total Community Demand includes $230,300 and $76,500 earmarked for 92-93 Community Demand
***Total Model Waiver represents amounts reflected on 6/15/94 authorization letter. There have been additional
authorizations that are not reflected; these amounts are not included in this document.
LINE E.3 DWI PROJECT GRANT DETAIL
3. Project Grant Funding: Homeless 109,539
a. Federal Medicaid
b. 13113rdiSSI
c. Other 109,539
4. Project Grant Funding: Adoption Services 30,000
a. Federal Medicaid
b. lstf3rd/SSI
c. Other 30,000
5. Project Grant Funding: FAIR 10,307
a. Federal Medicaid
b. lst/3rdiSSI
c. Other 10,307
6. Project Grant Funding
a. Federal Medicaid
b. 1stnnifSSI
c. Other
7. Project Grant Funding
a. Federal Medicaid
b. 1stf3rd/SSI
c. Other
8. Project Grant Funding
a. Federal Medicaid
b. lsU3rd/SSI
C. Other
09:52 AM07128194
PART III - FUNDING
SOURCE OF REVENUE DETAIL
CMH BOARD: Oakland
Fiscal Year 1993-94
Amendment It3
LINE B - PROJECTED NON-DMH FUNDING DETAIL
1. Substance Abuse
2. DD Council Project Grant
3. Sheltered Workshop income
4. Other
S. Total:
LINE C - LOCAL NON-MATCH
1. Non-match expenditures
2. Local share - 0MH grants/earned contracts
3. Local share - Non-DMH Grants/earned contracts
4. Non-approved programs
5. Excess local - PA. 423 related
6. Excess local - other
7. Local share - SAM HSA federal grant
8. Other Forensic Center 248,488
9. Local share - state provided services 6.546,688
10. Total 6,795,176
LINE E.3 - STATE AGENCY EARNED CONTRACT DETAIL
1. AGENCY: OBRA 300,000
a. Federal Medicaid
b 1sti3rd/SSI
c. Other 300,000
2. AGENCY:
a. Federal Medicaid
b. 1sti3rdfSSI
c. Other
9. Total Project Grant Funding 449,846
a. Federal Medicaid
b. lstrarcUSSI
c. Other 449,846
LINE G. 3.C. SERVICES REQUIRING 10% MATCH - LOCAL FUNDING
1. XX Replacement 75,409
2. Other Load 2,398,646
3. Total (corresponds to G.3.c) 2,474,055
MATCHED SREV10ES TOTAL MEDICAID (FEDERAL AND STATE SHARE)
1. ICF - MR (ale)
2. Personal Care 1,296,329
3. 11.C.B. WaiVar
4. Clinic Serv. (Inc CSM) 7,321,262
5. Other - Specify
6. Other - Specify
7. Total 8,617.591
3,674
Caro Regional Center (MI)
; MI Adult Inpatient
Disputed Inpatient
260.00 955,240
260.00
07/28194
OAKLAND COUNTY COMMUNITY MENTAL HEALTH
STATE INSTITUTION ANALYSIS
Amendment #3
PART III - FUNDING
PLANNED STATE SERVICES UTILIZATION
AGENCY
STATE
PLANNED CONTRACT CONTRACT
DAYS RATE AMOUNT
Clinton Valley Center (MI)
; MI Adult Inpatient 76,664 232.00 17,786,048
MI Adult Residential* 78,300 75.00 5,872,500
Kalamazoo Regional Hospital
; MI Adult Inpatient 262.00 0
Disputed Inpatient 365 262.00 95,630
Northville Regional Hospital
; MI Adult Inpatient 367 285.00 104,595
Disputed Inpatient 366 285.00 104,310
Walter Reuther Facility
; MI Adult Inpatient 6,272 200.00 1,254,400
TOTAL MI ADULT
MI INPATIENT 87,708 20,300,223
MI RESIDENTIAL 78,300 5,872,500
Fairlawn Center
MI Children Inpatient 18,500 326.00 6,031,000
MI Children Residential 22,500 119.00 2,677,500
Hawthorn Center
MI Children Inpatient 260 273.00 70,980
TOTAL MI CHILDREN
MI Children Inpatient 18,760 6,101,980
MI Children Residential 22,500 2,677,500
Caro Regional Center (OD)
DD Inpatient 7,309 122.00 891,698
DO AIS 6,000 122.00 732,000
DD Residential 6,935 116.00 804,460
Macomb Oakland Regional
DD ALS 85,410 101.00 8,626,410
DID Residential 137,970 93.00 12,831,210
Mt Pleasant Center
OD inpatient 2,555 156.00 398,580
DD AIS 10,900 103.00 1,122,700
DID Residential 10,220 62.00 633,640
Southgate Center
OD Inpatient 1,084 151.00 163,684
TOTAL DD
DD Inpatient 10,948 1,453,962
DD AlS 102,310 10,481,110
DD Residential 155,125 14,269,310
TOTAL INPATIENT 117,416 27,856,165
TOTAL AIS 102,310 10,481,110
TOTAL RESIDENTIAL 255,925 22,819,310
61,156,585
Resolution #94243 August 18, 1994
Moved by Jensen supported
AYES: Jensen, Johnson,
McPherson, Moffitt, Newby, Oaks,
Wolf, Crake, Douglas, Garfield,
NAYS: None. (0)
by Kaczmar the resolution be adopted.
Kaczmar, Kingzett, Kramer, Law, McCulloch,
Obrecht, Palmer, Pernick, Powers, Schmid, Taub,
Gosling, Huntoon. (23)
A sufficient majority having voted therefor, the resolution was adopted.
I HE
L. Brooks
AR• „or'
—4- kg'
a
FOREGOING R 7e7.21UTIO!'-i
County Executive Date /
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on August 18, 1994 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and fixed the seal
County of Oakland at Pontiac, Michigan this 18th day of7August -14(9-
D. Allen, County Clerk
f the
4