Committee advances $107 million amendment to HealthRight360 agreement, sending it to full Board
June 01, 2023 | San Francisco County, California
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The Government Audit & Oversight Committee on June 1 voted to send to the full Board a resolution approving Amendment No. 2 to the agreement between HealthRight360 and the Department of Public Health, increasing the contract by about $60.6 million to a new not‑to‑exceed amount of roughly $107.4 million and extending the term through Dec. 31, 2025.
The Department of Public Health’s Michelle Ruggles told supervisors the contract covers reimbursements to small residential care facilities, emergency and stabilization hotels, client wraparound expenses and other direct services that often cannot contract directly with the City. "They write about 1,500 checks per year," Ruggles said, describing HR360’s role advancing payments to vendors and invoicing DPH for monthly reimbursement. Ruggles said the largest single category discussed was residential care, roughly $19 million of the reported budgets.
Severn Campbell of the Budget and Legislative Analyst clarified the fiscal breakdown: of the $60.6 million increase, about $88,000 was earmarked for check‑writing services while the remainder funds the vendors who deliver direct services. "Of that $60.6 million, about $88,000 is actually for check writing services," Campbell said.
At least one member of the public urged more documentation about the amendment’s spending, calling the figure "a lot of money" and saying the contract "is not real to me," remarks that drew a brief committee response about the funds' pass‑through nature. DPH staff offered to provide a vendor list and said monitoring occurs through memoranda of understanding, monthly reporting and the Controller’s fiscal monitoring program.
Chair Supervisor Dean Preston moved to forward the resolution to the full Board with a positive recommendation; Vice Chair Stephanie and Supervisor Connie Chan joined him in voting aye and the motion passed. The item is expected to appear on the Board’s calendar for the full Board’s consideration.
The Department of Public Health’s Michelle Ruggles told supervisors the contract covers reimbursements to small residential care facilities, emergency and stabilization hotels, client wraparound expenses and other direct services that often cannot contract directly with the City. "They write about 1,500 checks per year," Ruggles said, describing HR360’s role advancing payments to vendors and invoicing DPH for monthly reimbursement. Ruggles said the largest single category discussed was residential care, roughly $19 million of the reported budgets.
Severn Campbell of the Budget and Legislative Analyst clarified the fiscal breakdown: of the $60.6 million increase, about $88,000 was earmarked for check‑writing services while the remainder funds the vendors who deliver direct services. "Of that $60.6 million, about $88,000 is actually for check writing services," Campbell said.
At least one member of the public urged more documentation about the amendment’s spending, calling the figure "a lot of money" and saying the contract "is not real to me," remarks that drew a brief committee response about the funds' pass‑through nature. DPH staff offered to provide a vendor list and said monitoring occurs through memoranda of understanding, monthly reporting and the Controller’s fiscal monitoring program.
Chair Supervisor Dean Preston moved to forward the resolution to the full Board with a positive recommendation; Vice Chair Stephanie and Supervisor Connie Chan joined him in voting aye and the motion passed. The item is expected to appear on the Board’s calendar for the full Board’s consideration.
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