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Commission approves two Alliance Healthcare contracts for detox and jail-diversion services
Summary
Shelby County commissioners approved two separate service contracts with Alliance Healthcare Services covering detox/substance-abuse services and post-booking jail-diversion services, totaling $1.39 million for FY2026. Commissioners raised unit-cost and utilization questions during debate.
The Shelby County Board of County Commissioners approved two contracts with Alliance Healthcare Services on Aug. 25: a service provider contract for detoxification, substance abuse and mental health services in the amount of $850,000 (item 12) and a contract for post-booking jail diversion services in the amount of $540,000 (item 14) for FY2026, with options for two additional one-year renewals.
Why it matters: The contracts fund services intended to treat substance use and mental illness and to divert people with severe mental illness away from jail into community-based care. Commissioners pressed for unit cost, utilization and outcome data during committee and on the floor.
Key points from the discussion: - Item 12 (detox and mental health services) came with a committee report recommending approval; one commissioner recused due to a construction conflict; the measure passed after vote (roll-call showed a majority in favor). - Item 14 (post-booking jail-diversion services to individuals with severe and persistent mental illness) drew detailed questions about capacity and outcomes: County staff reported that the FY25 crisis-stabilization served more than 6,100 people; Alliance’s post-booking program previously served 39 people last year and county staff estimated FY26 capacity at roughly 80 clients based on current funding. - Commissioners asked for data on referrals, how unused capacity was deployed, and a per-client cost estimate. Staff provided a per-client estimate for the Jericho Project (Alliance program) of $12,275.07.
Votes and outcome: Both contracts passed. Item 12 passed with the roll-call majority recorded in the meeting; Item 14 passed (roll call: 9 ayes, 1 no, 1 recused). Commissioner discussion requested quarterly reporting on utilization, referrals and unit costs.
Ending: Commissioners approved the contracts but asked for follow-up data on clients served, referrals, staff costs and barriers to full utilization to inform next-year funding decisions.
