Item Description:
title
Authorize the expenditure of $8,815,000 for 41 Agmts with providers for prevention, treatment, and other strategies to support the Hennepin County Opioid Framework; supp appr to 2024 Opioid Special Revenue fund
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Resolution:
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BE IT RESOLVED, that the County Board authorizes the expenditure of $8,815,000 from Opioid Settlement Funds for strategies: A1, A3, A5, A8, A9, A11, A13, B1, B2, B3, B4, B6, B10, B13, B15, C1, C2, C3, C6, C10, E1, G2, G6, G7, G8, G9, G10, G11, G12, H1, H2, H3, H9, H10, H11, J3, L1, as delineated in Exhibit A of the Amended Minnesota State-Subdivision Agreement; and
BE IT FURTHER RESOLVED, that 41 contracts, outlined in Attachment 1, to provide opioid prevention, response, and treatment services during the period of January 1, 2024 through December 31, 2025 with a total combined not to exceed amount of $8,815,000 be approved, as described in the table below; that the Chair of the Board be authorized to sign the Agreements on behalf of Hennepin County; and the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that a supplemental appropriation to increase the 2024 revenue and expenditure budget for the Opioids Settlement Special Revenue Fund by $4,407,500 for prevention, response, and treatment services be approved.
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Background:
Hennepin County filed suit against several opioid manufacturers and distributors several years ago. In 2022, Hennepin County began receiving direct allocations from the National Settlement Agreements with Johnson & Johnson, AmerisourceBergen, Cardinal Health, and McKesson and expected bankruptcy resolutions with Purdue Pharma L.P. and Mallinckrodt plc. (“Opioid Settlement Funds”). In a prior board action (Resolution 22-0404 R1), the County Board authorized the expenditure of $1,604,485 for 18 contract renewals addressing opioid treatment and prevention. In a prior board action (Resolution 23-0395), the County Board authorized the expenditure of an additional $825,556 to extend those 18 contracts through the end of 2023. Opioid Settlement Funds allocated to Hennepin County over 18 years (currently estimated to exceed $70 million) are being deposited in a Special Revenue Fund and will be expended yearly. Annual expenditure may include up to a 10% allotment for administrative expenses. Resolution 22-0404 R1 established that Board-authorized budgets for Opioid Settlement Funds do not lapse at year-end. The adopted budget for the Opioid Settlement Fund is $11.7 million. This resolution would increase the budget by an additional $4.4 million, for a total budget of $16,098,355.
In compliance with the opioid settlement terms in the Amended Minnesota State Subdivision Agreement, the Opioid Settlement Funds will be used to enhance current and new strategies that will support the Hennepin County Opioid Framework, which calls for prevention, response, and treatment with a strong focus on disparity reduction. This will incorporate lived experience, new themes, and communities affected disproportionately.
The Amended Minnesota State Subdivision Agreement, which all counties in Minnesota signed on to, requires a variety of reporting and evaluation criteria, such as an annual public meeting regarding the use of the Opioid Settlement Funds, as well as collaboration with the State, cities, and community stakeholders. The Opioid Settlement Funds must be used and designated for future opioid remediation activities in public health, human services, and public safety, which includes:
TREATMENT
A: Treat Opioid use disorder
B: Support people in treatment and recovery
C: Connect people who need help to the help they need (Connections to care)
D: Address the needs of criminal justice-involved persons
E: Address the needs of the prenatal population, caregivers, and families, including babies with neonatal opioid withdrawal syndrome
PREVENTION
F: Prevent over-prescribing and ensure appropriate prescribing and dispensing opioids
G: Prevent misuse of opioids
H: Prevent overdose deaths and other harms (Harm reduction)
OTHER STRATEGIES
I: First Responders
J: Leadership, planning, and coordination
K: Training
L: Research
M: Post-Mortem
Disparity Reduction Impact: This Board Action supports disparity reduction in the Health domain by providing funding for opioid prevention, response, and treatment and recovery which disproportionately impacts residents of color. Recognizing that racism is a public health crisis and health equity is a priority, disparity reduction guides the Opioid Framework and funding, focusing on services provided with compassion and care and through the lens of public health.
Current Request:This Board Action Request seeks authority to execute 41 new contracts for a total of $8,815,000 to address the opioid crisis in the community, and also provides a supplemental appropriation to increase the 2024 budget for the Opioids Settlement Special Revenue Fund by $4,407,500
recommendation
Recommendation from County Administrator: Recommend Approval