Josephine County Cancels Contract with Addiction Recovery Firm

After contracting OnTrack for substance abuse treatment in 2017, county commissioners decided on Wednesday to terminate that contract following an audit.

Posted: Oct 17, 2018 4:56 PM
Updated: Oct 17, 2018 6:59 PM

GRANTS PASS, Ore. — Josephine County will no longer require the addiction recovery services of OnTrack, the commissioners decided on Wednesday. The County claims that the termination of OnTrack's contract stems from an audit of their services that began in August.

OnTrack began working with Josephine County in September of 2017, providing both "outpatient and residential services" for homeless and low-income clients grappling with substance addiction.

According to the County, an audit that they initiated between August 20 and October 10 found that there were funds being allocated for clients who were "not eligible" for those services.

"The County has an obligation to our citizens to ensure that pass through funds are spent according to the law and in compliance with contracts," said Commissioner Lily Morgan. "Based on the results of the County’s audit, we cannot continue this contract.”

In a letter drafted by County Legal Counsel Wally Hicks and addressed to OnTrack Executive Director Alan Ledford, Hicks alleges that the County overpayed by $138,371 for clients who were not eligible for services, requiring that OnTrack pay that amount back within 30 days. The letter threatens litigation if the amount is not paid within that time.

The letter from Hicks does not provide any more specifics about what kinds of clients were deemed eligible for services by OnTrack that were not considered eligible by the County.

When contacted for comment regarding the County's decision, OnTrack administrators at first seemed to be unaware that the County planned to deliberate on the issue at all — not until people began calling following the termination.

Ultimately, OnTrack issued this statement in response to the decision:

"OnTrack is continuing its rebuilding process by rigorously examining all business practices and making improvements where needed. We look forward to renewing this contract with Josephine County in the future. No current OnTrack clients in Josephine County are affected by this decision."

OnTrack has been under fire in the past when public health officials shut down several of their facilities, alleging substandard housing conditions. However, the company changed leadership and embarked on a campaign to earn back the public's trust.

Since then, the company has experienced what appeared to be a resurgence, opening up new facilities for fathers and mothers seeking recovery in the Medford area.

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