September 28, 2023

The Department of Health Care Services (DHCS) is the reporting entity for funds received through the Mallinckrodt Bankruptcy, pursuant to the California Mallinckrodt Statewide Abatement Agreement. Funds from the Mallinckrodt Bankruptcy are distributed directly to local governments from the National Opioid Abatement Trust II Fund (NOAT II). DHCS will provide a training session on the Mallinckrodt expenditure reporting form on Wednesday, October 25, 2023, from 12:00 p.m. to 1:00 p.m.

Participants must register in advance at the link here. A recording and presentation slide deck will be posted to the DHCS Opioid Settlements webpage following the webinar.

DHCS, in collaboration with UCLA’s Integrated Substance Abuse Programs, has created an expenditure reporting form for local governments to report on the use of Mallinckrodt funds. A link to the form will be sent to listed contacts for each local government on October 25, 2023. The form will open on October 25, 2023, and will close on November 30, 2023.

Mallinckrodt Background

DHCS reports that California elected to distribute the majority of NOAT II funds to counties and cities for opioid remediation activities at the local level. Counties and cities will receive funding from the trust as determined by the California Mallinckrodt Statewide Abatement Agreement (Agreement). Local governments receiving funds from the Mallinckrodt Bankruptcy are required to complete DHCS annual expenditure reporting.

Local governments may review the Agreement for information about requirements and oversight. Eligible opioid remediation activities, strategies, and distribution procedures are available in Exhibit 4 of the Mallinckrodt Bankruptcy Plan. All relevant distribution/plan documents for the Mallinckrodt Bankruptcy can be found on the NOAT II website.

Reminder: Opioid Settlements Reporting Form Due October 31
The Expenditure Reporting Form for settlement agreements with McKesson, Cardinal Health and AmerisourceBergen (collectively, the Distributors) and Janssen Pharmaceuticals is still open. The reporting period opened on August 1, 2023, and runs through September 30, 2023. For this State Fiscal Year 2022-2023 reporting period, DHCS is allowing a one-time grace period for expenditure form submissions and will accept submissions until October 31, 2023.

Prior DHCS Listening Session/Webinar Information

DHCS hosted its first listening session in December 2022 on reporting requirements to fulfill the mandate outlined in the California State Subdivision Agreements requiring DHCS to confer with representatives of the plaintiff subdivisions prior to specifying the form of the report. DHCS has hosted subsequent webinars in 2023 to discuss allowable expenditures, considerations for allocating funds, and working with local coalitions to maximize the impact of the opioid settlement funds. The recorded sessions and webinar slides are posted on the DHCS California’s Opioid Settlements webpage.

Requesting Technical Assistance

DHCS has established a process for participating subdivisions to request technical assistance. Initial steps include review of the California Opioid Settlements Allowable Expenditures resource and the FAQs prior to submitting a request, followed by completion of the California Opioid Settlement Technical Assistance Form and submittal of the completed form to OSF@dhcs.ca.gov. For detailed instructions, please see the DHCS California’s Opioid Settlements webpage here.