TO: Board of Supervisors
FROM: AJ Alarcón, Interim Director of Corrections
REPORT BY: Daniel Sanchez, Staff Services Manager
SUBJECT: Agreement with Serrano Advisors, LLC
RECOMMENDATION
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Approve and authorize Agreement No. 260343B with Serrano Advisors, LLC to provide consulting services related to implementing the California Advising and Innovating Medi-Cal program. (Fiscal Impact: $250,000 Expense; General Fund; Budgeted; Discretionary)
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BACKGROUND
California Advancing and Innovating Medi-Cal (CalAIM) is a series of state mandated initiatives and reforms under the State of California Department of Health Care Services (DHCS) to California’s Medi-Cal members.
One of the initiatives of CalAIM is the Justice-Involved Reentry Initiative (Initiative). On January 26, 2023, California became the first state in the nation approved to offer a targeted set of Medicaid Services to youth and eligible adults in state prisons, county jails, and youth correctional facilities for up to 90 days prior to release. The Initiative addresses poor health outcomes in these populations by establishing pre-release Medi-Cal enrollment strategies to ensure individuals have continuity of coverage upon their release, as well as access to key services to help them successfully return to their communities.
The CalAIM program planning will necessitate Consultant services leading into the implementation phase with critical milestones to include: planning and implementation, coordinating prerelease services, facility readiness for the jail and juvenile hall, contract management support for the medical services provider and medical billing firm, and data sharing for continuity of care.
Providing Access and Transforming Health (PATH) is a five-year, $1.85 billion initiative to build up the capacity and infrastructure of partners with the State to successfully participate in the Medi-Cal delivery system. California will implement Enhanced Care Management; Community Supports and Justice Involved services under CalAIM. The Department of Corrections is receiving a total of $3,500,000 to implement this program. Of this, $250,000 will be used to pay for the services of Serrano Advisors, LLC. The entire contract amount with Serrano Advisors is eligible for PATH funding as a revenue offset.
Serrano Advisors, LLC, has 28 years of experience in Medicare and Medicaid finance and administration. The president of this agency was the CEO for the Alameda Alliance for Health, a public managed care health plan serving 400,000 adults, youth and children in the East Bay of California.
Serrano Advisors, LLC provides consulting services to assist counties with budget implementation; coordinate interagency collaborations to reach a successful launch of pre-release and post-release services; and oversee the pre-go-live quality assurance and readiness effort. They have specialty skills and qualifications in Medicare and Medicaid policy and reimbursements including coordinated entry services for justice-involved populations, and behavioral health realignment.
With CalAIM, Corrections is now tasked with implementing Justice Involved pre-release services. Serrano Advisors, LLC will support the Department of Corrections in implementing CalAIM pre-release services through program management, vendor oversight, regulatory compliance, operational planning, and cross-agency coordination to ensure effective service delivery and continuity of care.
Requested Action:
Approve Agreement No. 260343B with Serrano Advisors, LLC from July 1, 2026 to June 30, 2029, not to exceed a contract maximum of $250,000.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Corrections - General Fund |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Corrections does not have the resources or expertise to implement the state mandated requirements for CalAIM. Consultant assistance is needed to comply with State legislation. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Appropriation has been requested in FY2025-26 Recommended Budget and will be budgeted accordingly in the succeeding fiscal year with offsetting Revenue of a DHCS grant. |
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Consequences if not approved: |
If the agreement is not approved, the Department is not able to meet the requirements for CalAIM. |
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Strategic Initiative |
Building Healthy, Connected Communities |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.