DEPARTMENT: Public Health
FILE TYPE: Regular Information
TITLE
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Dakota County Opioid Settlement Response Update
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PURPOSE/ACTION REQUESTED
Receive updates related to the Minnesota Opioid Settlement.
SUMMARY
Over the past several years opioid misuse and dependence have reached epidemic levels, causing Dakota County and other local governments to expend significant public dollars to combat this public health crisis. Between 2000 and 2020, 378 Dakota County residents died from opioid-involved overdoses rising from two to 36 cases annually for a total of 378 for this period. From 2016 to 2020, the number of nonfatal opioid overdose emergency room visits increased from 88 in 2016 to 211 in 2020 for a total of 647 for this period. In 2018, the Office of Performance & Analysis (OPA) compiled key statistics on the effects of opioid misuse across Dakota County which were recently updated in 2022 (Attachment: Opioid OPA Summary Data).
Pharmaceutical manufacturer, Johnson and Johnson and opioid distributors, McKesson, Cardinal Health and AmericsourceBergen were engaged in marketing efforts to encourage doctors to prescribe opioid drugs and it is alleged they misrepresented the risk of addiction which resulted in over 3,000 state and local lawsuits. By Resolution No. 17-671 (December 12, 2017), the County Board authorized the County Attorney’s office (CAO) to commence civil action against companies responsible for the opioid epidemic and the CAO led the work for the multi-state opioid litigation process for Dakota County. By Resolution No. 21-619 (December 14, 2021), the County Board authorized the participation in the multistate settlements relating to opioid distributors and manufacturers and supported the Memorandum of Agreement which allocates 25 percent of the settlement funds directly to the state and 75 percent directly to participating local governments. (Attachment: Summary of Distributors and Johnson & Johnson Settlement).
Dakota County will receive a consolidated state allocation of $9,814,545.38. The Johnson & Johnson funding is paying out over nine to ten years, with front-loaded payments in the first three years. The distributor settlement agreement is paying out over 18 years through 2039. The cities of Burnsville, Eagan, Apple Valley, Lakeville, and Inver Grove Heights will also receive funding and once a year may direct all or part of their funds to the County (Attachment: Estimated Payment Schedule). Additional funds from the pending Purdue Pharma and Mallinckrodt bankruptcy case will be available, however, timeline and funding amounts are still to be determined. In addition, the pharmaceutical manufacturer, Teva has recently proposed a tentative settlement of approximately $4 billion nationally. The County Attorney’s office will provide updates on the Teva settlement structure as more information is provided.
The Memorandum of Agreement mandates that Public Health shall serve as the Chief Health Strategist to lead the efforts to identify, collaborate and respond to local issues. Working with Dakota County cities and community partners is required. Funding should be prioritized on prevention strategies and used for treatment and prevention efforts across public health, human services, and public safety to address both mental health and substance use (Attachment: Eligible Use of Funds). Over the last month, a countywide opioid program assessment was conducted to determine current opioid programming (Attachment: Dakota County Opioid Services). As a first step, an Opioid Advisory Committee will be formed with external and internal partners who will develop a framework and guiding principles. Staff will update the County Board in early 2023 on the framework, guiding principles and funding guidelines and will seek approval to move forward with the implementation phase anticipated in Q2 2023.
OUTCOMES
Staff will use evidence-based models across Dakota County and measure opioid use, overdose, and deaths of all ages. Goals, strategies, and outcomes will be developed by the Opioid Advisory Committee as part of the workplan.
RECOMMENDATION
recommendation
Information only; no action requested.
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EXPLANATION OF FISCAL/FTE IMPACTS
Revenue generated from this allocation is estimated to be $9,814,545.38 over 18 years.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
Information only; no action requested.
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PREVIOUS BOARD ACTION
17-671; 12/12/17
21-619; 12/14/21
ATTACHMENTS
Attachment: Opioid OPA Summary Data
Attachment: Summary of Distributors and Johnson & Johnson Settlement
Attachment: Estimated Payment Schedule
Attachment: Eligible Use of Funds
Attachment: Dakota County Opioid Services
BOARD GOALS
☒ A Great Place to Live ☒ A Healthy Environment
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
PUBLIC ENGAGEMENT LEVEL
☐ Inform and Listen ☐ Discuss ☐ Involve ☒ N/A
CONTACTS
Department Head: Gina Adasiewicz
Author: Madeline Goebel