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Health and Human Services Agency (HHSA) recommending the Board:
1) Make findings pursuant to Section 3.13.030 (B) of the El Dorado County Ordinance Chapter 3.13, Contracting Out, that the Residential Treatment services provided by Compassion Pathway Behavioral Health, LLC doing business as Compassion Springs (Compassion), require specialty skills and qualifications not expressly identified in County classifications are involved in the performance of the work;
2) Approve and authorize the Chair to sign Amendment II to Agreement for Services 8092 with Compassion, for the retroactive effective date of November 21, 2025, to update billing rates to include a rate schedule for the Bayoak Social Rehabilitation Facility (SRF) that was added to the Agreement via Notice to Parties letter on November 21, 2025, with no changes to the maximum obligation or term of the Agreement;
3) Authorize the Purchasing Agent to execute amendments relating to Agreement 8092, contingent upon approval by County Counsel and Risk Management, which do not increase the maximum dollar amount or term of the Agreement; and
4) Authorize the HHSA Director, or the Chief Assistant Director, to execute programmatic, administrative, and fiscal documents relating to Agreement 8092.
FUNDING: 36% Federal Medi-Cal, 54% Realignment, and 10% Mental Health Services Act / Behavioral Health Services Act.
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DISCUSSION / BACKGROUND:
On behalf of the County, HHSA Behavioral Health Division (BHD) contracts with the State as the Medi-Cal Mental Health Plan (MHP). As the MHP, HHSA BHD is required to provide Specialty Mental Health Services (SMHS) to individuals, including long-term residential facility placements when appropriate. To meet this requirement, the MHP contracts with providers of inpatient residential treatment facilities to ensure availability of services in accordance with Title 9 and Title 22 of the California Code of Regulations (CCR) and California Welfare and Institutions Code (WIC) Section 5600 et seq., 14000 et seq., and 17000 et seq.
Through Agreement 8092 approved by the Board on June 11, 2024, Compassion provides long-term treatment facilities for County clients whose serious mental illness requires continuous supervision (Legistar file 23-2148). The Board made findings in accordance with Procurement Policy C-17 Section 3.4(2f), exempting the competitive bidding process, with Purchasing Agent concurrence, because “the procurement is for services where the continuity of providers will provide efficiency or critical knowledge, and other providers of the services cannot provide similar efficiencies or critical knowledge." The services provided by Compassion are designed to assist clients in the development of skills to become more self-sufficient and to move towards increasing levels of independent functioning, with the ultimate goal of community reintegration.
Amendment I to Agreement 8092 was executed by the Purchasing Agent on October 10, 2024, to update the Provider Rates included in the Agreement, with no change to the term of maximum obligation. Amendment II is being brought to the Board as HHSA was notified on October 23, 2025, of a new Bayoak Social Rehabilitation Facility (SRF) location in Sacramento County. BHD approved the addition of this location via a Notice to Parties letter dated November 21, 2025, to add to the list of available facilities under the Agreement. Shortly after the contract addition, a conserved County client was urgently placed at Bayoak SRF due to the discovery of a significant mold problem at the client’s previous facility. Consequently, bringing this retroactive Amendment before the Board was unavoidable to allow BHD to add the rate for the Bayoak SRF, as the services have been provided at this facility, and the Provider Rates must be retroactively updated to allow for payment of services at the new location.
HHSA recommends the Board approve this Amendment II to Agreement 8092 with the retroactive period beginning November 21, 2025, to allow HHSA to pay for retroactive services performed by Compassion.
ALTERNATIVES:
Should the Board decline to approve these recommendations, HHSA would not be able to reimburse Compassion for services provided to County clients at the Bayoak SRF.
PRIOR BOARD ACTION:
01/09/24, 23-2148, HHSA Residential Treatment Contracts 8091, 8092, 8093
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
County Counsel, Human Resources, and Risk Management.
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
There is no Net County Cost associated with this agenda item. Sufficient appropriations were included in the Fiscal Year (FY) 2025-26 Budget and FY 2026-27 Budget request and will be included in future budgets for the terms of the Agreement.
CLERK OF THE BOARD FOLLOW UP ACTIONS:
Clerk of the Board to obtain signature of Chair on one original Amendment II to Agreement for Services 8092.
STRATEGIC PLAN COMPONENT:
N/A
CONTACT:
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency