Wayne County panel approves CMO contract amendments and a three-year MOU with Third Judicial Circuit Court

Wayne County’s Health & Human Services Committee voted to approve a set of contract renewals and an updated memorandum of understanding related to juvenile justice services.

Commissioner Killeen moved to approve items 2 through 6 (the five CMO contract renewals and related amendments), and Commissioner Anderson seconded. The chair called for the vote and the motion carried by recorded voice vote: "All in favor?" "Aye," the commissioners replied; the clerk recorded the motion as carried.

What passed: An amendment (referred to in the agenda as Amendment 15) to a multi-year contract with Vista Maria doing business as Insight Youth and Family Connections was presented to account for a fiscal-year 2025 third-quarter payment adjustment (a decrease) and to add funding for fiscal year 2026 so the contractor can continue providing comprehensive treatment plans to juveniles in accordance with juvenile justice requirements. County staff said this renewal represents the final available renewal under the existing contract structure and extends services through Sept. 30, 2026; a request for proposals will be released early in 2026.

Key contract changes described by JYS staff: the county will change how "level 2" residential costs are paid. Rather than a capitated rate, level 2 will be reimbursed on an itemized fee-for-reimbursement basis with a 6% case-management administration fee to the CMOs for residential placements. In-home services (probation levels 1 and 1.5) will be paid at daily rates; staff said level 1.5 is $175 per day and level 1 was stated as $170 per day in the presentation. CMOs will also receive a 10% case-management administration fee for in-home levels. County staff said the change aims to ensure CMOs are reimbursed for higher vendor residential rates rather than being constrained by a flat capitation.

Officials told the committee that residential bed costs have risen substantially since 2018: staff cited a historical figure of about $368 per night in 2018 and said current residential facility rates can be about $1,100 per night. County staff provided utilization figures: 141 probation level 2 youth in 2024 compared with 272 in 2018; probation level 1/1.5 utilization rose to 737 in 2024 from about 232 in 2018. The administration said it will continue to meet with CMOs during the contract term to monitor state rate changes and utilization and, if needed, amend contracts.

The committee also unanimously approved a three-year memorandum of understanding with the Third Judicial Circuit Court to define standing authority and roles for delivering juvenile justice services in Wayne County. County legal and juvenile justice staff described the MOU as largely an extension and update of prior agreements with minor language and administrative updates; the agreement runs three years so the county and court can continue the partnership while monitoring state-level developments.

Discussion vs. action: the committee debated contract mechanics and administrative changes before voting. Commissioners asked for clarification on admission levels, court assessment responsibilities and potential financial impact to CMOs; county staff and CMO representatives addressed the questions during the presentation. The committee approved the contracts and MOU, and staff said they would release an RFP in early 2026 and continue engagement with CMOs throughout the year.

Votes at a glance: Items 2–6 (renewal/amendment of five CMO contracts, including the Vista Maria amendment) — moved by Commissioner Killeen, seconded by Commissioner Anderson; voice vote recorded as all in favor; motion carried. Item 7 (three-year MOU with Third Judicial Circuit Court) — moved by Commissioner Killeen, seconded by Commissioner Anderson; voice vote recorded as all in favor; motion carried.

Ending: County officials said they will continue monitoring state rate-setting and utilization trends and will work with CMOs and the court during the contract term to address any financial or programmatic shortfalls.