This Aug. 15, 2017, file photo shows an arrangement of pills of the opioid oxycodone-acetaminophen, also known as Percocet, in New York.
The Associated Press File Photo
Johnson County and its communities could receive millions of dollars from opioid lawsuit settlements over the next two decades.
The state of Indiana is expected to distribute more than $116 million in unrestricted funds and more than $323 million in restricted funds, which can only be used for opioid remediation or abatement purposes, to counties and communities across the state from now through 2038. These numbers are estimates and could be subject to change, according to the Indiana Attorney General’s office.
The latest batch of funds, about $44.7 million, were distributed by the AG’s office to communities earlier this month. The payments sent result from settlements with Allergan, Teva, Walgreens, CVS and Walmart — along with a small additional payment received from pharmaceutical distributors Cardinal Health, McKesson and AmerisourceBergen. Throughout all opioid settlements obtained under Attorney General Todd Rokita, Indiana is anticipated to receive more than $925 million, his office said in a news release.
“The scourge of opioid abuse and overdose has inflicted such unspeakable pain on so many Hoosiers,” Rokita said in a statement. “No amount of money will ever compensate families for the loss of loved ones, but these settlements help prevent similar types of corporate irresponsibility from ever happening again.”
Through the settlement framework, there is a 50-50 split between the state and local governments. The $44.7 million sent to local communities — plus another approximately $2.6 million in attorney fees paid to litigating subdivisions’ counsel — represents 50% of the approximately $95 million in funds remitted by the pharmaceutical companies for this round of payments. The other 50% goes to the state, and local communities are encouraged to seek information regarding the state’s 50% share and take steps to obtain additional funds, according to the attorney general’s office.
Johnson County could receive up to $2.4 million in unrestricted funds, and up to $5.7 million in restricted funds over 18 years, data from the AG’s office shows. Each city and town will also receive money:
- Greenwood could receive up to $180,806 in unrestricted and $582,281 in restricted funds, subtracting $72,080 in attorney fees.
- Franklin could receive up to $107,663 in unrestricted and $346,727 in restricted funds, subtracting $42,921 in attorney fees.
- Edinburgh could receive up to $27,416 in unrestricted and $64,706 in restricted funds.
- New Whiteland could receive up to $20,633 in unrestricted and $48,696 in restricted funds.
- Whiteland could receive up to $17,485 in unrestricted and $41,267 in restricted funds.
- Bargersville could receive up to $16,679 in unrestricted and $39,364 in restricted funds.
- Prince’s Lakes could receive up to $5,382 in unrestricted and $12,704 in restricted funds.
- Trafalgar could receive up to $4,788 in unrestricted and $11,301 in restricted funds.
Local governments have “wide discretion” in choosing exactly how to use the opioid funds. Settlement funds can support local law enforcement efforts, drug task forces, regional treatment hubs, early intervention and crisis support, other programs aimed at combating substance abuse and overdoses and more, according to the AG’s office.
The Daily Journal reached out to governments across the county to ask what they planned on using the funds for. Bargersville, New Whiteland and Prince’s Lakes do not have any plans as of now, while Edinburgh and Whiteland did not respond to inquiries before print deadlines.
Franklin, Greenwood and Johnson County do have some plans in the works, with Greenwood’s plans being closer to reality.
Community collaboration
Franklin was among one of the first communities to participate in the lawsuits because of the “devastating impact” opioids were having on residents, and therefore, government employees and agencies like first responders, said Lynn Gray, city attorney. The city is receiving about $107,663 in unrestricted funds and $305,000 in restricted funds, she said.
These numbers are from current settlements and could increase as further settlements are reached, Gray said.
For the unrestricted funds, both Mayor Steve Barnett and the city council have indicated a desire to use them to offset general fund expenses such as police and fire costs, Gray said.
On the other hand, the restricted funds are more complicated. These funds will be paid out at different levels over 18 years, with some payments being front-loaded. This means more may be received in years one and two, but less in future years, she said.
The average amount for restricted funds is $10,000 a year. With the restricted funds, both Barnett and the city council have expressed making it a priority to use the funds in a manner that “best addresses the issue and creates a real impact,” Gray said.
For the city itself, it would be difficult to maintain a sustainable program at $10,000 a year. So, Franklin has been working with Johnson County, and local entities like Bargersville, Whiteland and Edinburgh, to create a collaborative grant program that lets entities with expertise in addressing these issues apply for grants for specific programs, she said.
“The council and mayor felt this offers the ‘best bang for our buck’ in that the collective funds could support a program and if there are private or non-profit entities already doing the work, the money can be used to help people and not used for administrative costs that would be required if we started our own program,” Gray said. “Council members also expressed that the problem doesn’t just exist within certain geographic boundaries so collaboration with other communities makes sense.”
Franklin has already authorized moving forward with collaboration. Until that is complete, the city is holding the funds in a restricted account, Gray said.
The county and other municipalities are still working on the final details of how to administer the program, both Gray and Johnson County Attorney Adam Gadberry said.
Johnson County has received more than $578,125 in unrestricted funds and more than $1.4 million in restricted funds as of March 7. The county is holding their restricted and unrestricted funds within their respective accounts, Gadberry said.
While the “lion’s share” of the funds will be coming to the county itself, the county commissioners do want to use them collaboratively with other local units in the county, he said.
“These funds unfortunately will not be a magic bullet to fix the opioid epidemic but the goal for these funds will be to lessen the hurt and trauma that Johnson County families and children have suffered due to the ongoing opioid crisis,” Gadberry said.
Other counties such as Hamilton County are exploring options similar to this too, Gray said.
Greenwood’s solution
While the grant program is still being worked out, the city of Greenwood already has use of the funds that is close to reality: mobile integrated health care.
So far the city has received $33,705 in unrestricted funds and $144,610 in restricted funds as of March 7, said Greg Wright, city controller. The funds received so far are planned to be used by the fire department for a mobile integrated health care program, which is designed to bridge health care gaps, said Jayme Washel, fire chief.
“The mission of it would be to deliver high-quality, cost-efficient medical care by us, helping to coordinate resources and then helping patients to get the right care at the right location,” Washel said.
Washel is familiar with these types of programs and successfully started one three years ago when he was Bloomington’s assistant fire chief. In general, the emergency medical services field is trending toward programs like this, and the state of Indiana has an initiative for it too, he said. The state refers to these programs as Mobile Integrated Health, or MIH.
There are several components of this program, like community paramedicine. But essentially, an emergency response would trigger a proactive response to bridge the gap, he said.
“For us, had almost 9,100 calls last year. Approximately 86% of those are EMS,” Washel said. “So we feel like we’re in a good position to really try to help out the community with the best way and the best service model to specifically to try to help bridge some of those health care gaps that some folks here in Greenwood are experiencing.”
These gaps could include people who are having health issues that don’t necessarily require an emergency response but don’t have any other option other than calling 911. This is where the reactive approach comes in, he said.
A traditional EMS response would be triggered and after medics speak with the person, they would follow up with them to address that issue and try to get them the appropriate care and/or support system needed, Washel said.
Greenwood has already become certified with the state to do this program, with the Indiana EMS Commission approving the city’s application in November. Becoming certified helps the program become eligible for grants and other funding sources, he said.
The Indiana Department of Homeland Security has a dashboard with a list of MIH programs. There are 113 providers so far, with Greenwood Fire being the first in Johnson County.
A feasibility study was done before creating the program, so there is already a plan in place for when it officially launches. Starting out, it will be a two-person squad responding out of Station 91 in a quick response vehicle, Washel said.
Sending the squads out will be more cost-effective for the city too, as it is less expensive to send this unit than a ladder truck or fire engine, he said.
“This is a much more cost-effective, and a much more efficient way of doing it,” he said.
Washel says it’s too early to say if the mobile integrated health care program will be the only use of the opioid settlement funds by the city, though it will be the main driver for the fire department and its EMS division, he said.
Funds from the city’s general fund will be used to supplement the program too, Washel said.
This story is by Noah Crenshaw and Waylon O’Donnell. Daily Journal reporter Jayden Kennett contributed to this report.
