Memorandum
Date: April 28, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Approve Amendment No. 1 to the Agreement Between the County of Lake and New Life Health Authority dba New Life, LLC for Substance Use Disorder Services for Fiscal Year 2025-2026 in the Amount of $16,300,000 and Authorize the Board Chair to Sign.
Executive Summary:
The County of Lake entered into an agreement with New Life Health Authority dba New Life, LLC effective July 1, 2025, to provide Drug Medi-Cal Organized Delivery System (DMC-ODS) substance use disorder services, including outpatient drug-free services, intensive outpatient treatment services, and Narcotic Treatment Program services. Under its agreement with the State, the County is required to provide or arrange for these mandated substance use disorder services for Medi-Cal beneficiaries.
New Life is a licensed and certified provider operating in a Tribal Health Care setting in Ukiah and is contracted to furnish medically necessary covered SUD services, including Narcotic Treatment Program services, in accordance with applicable state and federal requirements. The agreement requires the contractor to maintain the necessary DMC site certification, ASAM designation or DHCS level-of-care designation, and all other required licenses, permits, and credentials for the contracted services.
Amendment No. 1 increases the total compensation payable under the agreement by $4,300,000, resulting in a revised contract maximum of $16,300,000, due to service utilization exceeding original projections. This amendment is necessary not only to address increased demand, but also to ensure continued access to a required level of SUD treatment capacity that does not currently exist within Lake County. Without this contracted provider arrangement, the County would risk gaps in its DMC-ODS provider network for required services.
The Contractor will continue to provide services in accordance with Exhibit A and will be reimbursed under Exhibit B, subject to the terms of the agreement and the availability of state and federal funding. Importantly, the non-federal share continues to be provided through the tribal funding arrangement, so this amendment does not require any additional County General Fund contribution. The underlying agreement also expressly contemplates the voluntary provision of the non-federal share by a tribal 638 entity.
Except as specifically amended, all other terms and conditions of the original agreement remain unchanged and in full force and effect. This amendment supports continuity of care, preserves required access to DMC-ODS services, and allows the County to continue meeting its regulatory and network obligations for Medi-Cal beneficiaries.
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Recommended Action: Approve Amendment No. 1 to the Agreement Between the County of Lake and New Life Health Authority dba New Life, LLC for Substance Use Disorder Services for Fiscal Year 2025-2026 in the Amount of $16,300,000 and Authorize the Board Chair to Sign.