Doña Ana County delegates payment authority after jail medical contractor misses payroll

Doña Ana County commissioners on Friday authorized the county manager to make emergency payments and take related contract steps to ensure medical services continue at the Doña Ana County Detention Center after the contractor, YesCare, missed payroll.

County staff told the Board of County Commissioners that YesCare "has missed another payroll" and that limited communication and incomplete payroll records had left jail medical staff unpaid for the most recent pay cycle. The board convened an emergency session to consider three responses: (1) have the incoming contractor, Thrive Medical Services, begin early and pick up delinquent payrolls and future payrolls with the county later withholding those amounts from YesCare's final payment; (2) have the county make direct-pay disbursements for the missed payroll (and potentially the next pay cycle) through existing direct-pay vouchers; or (3) a combination of termination and county interim payments to limit administrative fees.

Legal counsel Jim told commissioners that YesCare (referred to in discussion as CSK in contract contexts) is in bankruptcy, limiting the county's practical ability to compel payment. "They are in bankruptcy and there's no resources," Jim said, adding that litigation options would be constrained and that strategy items should be discussed in closed session. He emphasized that the immediate concern was avoiding a break in health care at the jail.

County staff said option two — direct county payment of the missed payroll and potentially the following payroll — would be the quickest way to maintain continuity and preserve employee benefits until Thrive is scheduled to take over on June 22. Staff noted W-9s and direct-pay systems are already in place and estimated the catch-up payment could be processed as early as Monday once staff reviews a 245-page payroll report to confirm dollar amounts. Staff also clarified that in some cases payments could be processed as NEC/1099 rather than regular payroll, which carries separate administrative considerations.

Commissioners raised concerns about any lapse in health insurance or other employee benefits if the contract were terminated immediately; multiple commissioners said they preferred to preserve coverage until the transition to Thrive. To give staff flexibility to act quickly while prioritizing the county-direct-pay option, commissioners worked with staff to craft a short motion delegating signature and payment authority to the county manager. As read by staff, the motion stated: "Delegate signature authority to the county manager for making payments through any of these options using his discretion." A motion to approve that wording was seconded and carried in a roll-call vote.

According to the roll call, the motion passed with recorded 'yes' votes from Commissioners recorded on the vote as Commissioner Shaljo Hernandez, Commissioner Kimball, Commissioner Zapata, Vice Chair Gameroz and Chair Sanchez. After the vote, staff said the county's legal team would submit materials to the attorney general and monitor developments; the board adjourned at 1:43 p.m.

What happens next: county staff will verify precise payroll totals from the payroll report and — under the delegated authority approved by the board — execute the chosen payment option to avoid interruption of medical services and employee benefits pending Thrive's planned start on June 22.