Agenda Item Request
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Authorize the County Manager to amend the contract with CFG Health Systems L.L.C. for jail medical services to increase RN pay to $50/hour and adjust the annual budget for all cost categories, including the management fee, by 1.9%.
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Background and Purpose of Request
The County currently contracts with CFG Health Systems, L.L.C. for medical services at the Cumberland County Jail. The contract must be renewed each year. CFG requested various changes to the contract at the FY 26/27 renewal, but staff did not have enough time to review and negotiate the request prior to the renewal date. The Commissioners voted at the July 2026 meeting to extend the contract under the same terms as FY 25/26 anticipating an amendment would be forthcoming.
Staff are now presenting the Commissioners with a proposed amendment to the jail medical contract based on CFG’s request. Originally, CFG requested a salary raise for RNs (to $50/hr.), a change to the staffing matrix to increase the number of RN hours by 1.4 FTE and reduce the number of CRMA hours by .6 FTE, and a 2.5% increase of the annual budget for all cost categories. Under the contract, the County agreed to annual budget adjustments based on the Consumer Price Index (CPI) for the Northeast Area. However, the exact amount of the adjustment is negotiable. After discussions, CFG submitted a modified proposal that includes an RN salary increase to $50/hour and a 1.9% CPI increase.
25/26 contract total: $4,149,936
CFG's original FY 26/27 proposal total (2.5% CPI, RN salary increase, staffing matrix change): $4,531,814
Updated FY 26/27 proposal total (1.9% CPI, RN salary increase): $4,311,703
The updated FY 26/27 proposal is approximately $220,000 less than CFG's original proposal. Approximately $20,000 of the decrease comes from the CPI reduction (from 2.5% to 1.9%) and $200,000 comes from eliminating the staffing matrix change. Staff recommend postponing any decision on whether to change the staffing matrix until the increased costs can be properly incorporated into the County’s annual budget, given the significant impact this change will have on the total cost of the contract.
The updated FY 26/27 proposal is approximately $162,000 more than the FY 25/26 contract total. Approximately $83,000 of the increase is due to the RN salary increase and $79,000 is due to the CPI increase. Staff recommend approving the RN salary increase to align compensation with the local market average and enable CFG to recruit and retain qualified candidates for these vital positions. Staff appreciate CFG’s willingness to reduce the CPI adjustment to 1.9%, which is at the low end of the possible range
Funding Amount and Source
This contract falls under the Contract Special Services line for the Jail in the FY 26/27 Annual Budget. The total amount appropriated for this line in the FY 26/27 Annual Budget is $4,417,850. Therefore, the updated proposed contract cost ($4,311,703) can be covered by this line. Note that the MAT RN salary ($214,443) is included in the total contract cost, but is funded by a Maine DHHS MAT Program grant. Also, this budget line is used to cover other jail expenses, including the Westwood Pharmacy Contract for medications at the jail and hospital details covered by outside law enforcement agencies.
Effective Date July 1, 2026
Attachments
• Proposed “First Amendment to Health Services Agreement Between CFG Health Systems, L.L.C. and the County of Cumberland, Maine.”