Title
Health and Human Services Agency recommending the Board:
1) Approve and authorize the Chair to sign Amendment 3 to Agreement for Services 25, (010-S1711) with Crestwood Behavioral Health, Inc., for the provision of “as requested” long-term, 24-hour treatment programs for adults with serious mental disorders, to extend the current term by two years to June 30, 2021, and to increase the compensation by $3,300,000 for a maximum contractual obligation of $7,500,000;
2) Make findings in accordance with County Ordinance 3.13.030 that it is more economical and feasible to contract with Crestwood Behavioral Health, Inc. for services because the County has neither the staff nor facilities to provide 24x7 residential treatment and detoxification services; and
3) Authorize the Purchasing Agent, or designee, to execute further documents relating to Agreement for Services 25, (010-S1711), including amendments which do not increase the maximum dollar amount or term of the Agreement, and contingent upon approval by County Counsel and Risk Management.
FUNDING: Behavioral Health Realignment.
Body
DISCUSSION / BACKGROUND:
On behalf of the County, HHSA contracts with the State as the Mental Health Plan (MHP) for the County. As the MHP, HHSA is required to provide Specialty Mental Health Services to eligible individuals, including long-term residential facility placements when appropriate. To meet this requirement, the MHP contracts with long-term residential treatment facilities and psychiatric facilities, to ensure availability of services on an “as requested” basis, in accordance with Title 9, California Code of Regulations (CCR), Title 22 CCR and Welfare and Institutions Code (WIC), Division 5.
Crestwood Behavioral Health, Inc. is licensed by the State of California to provide long-term residential intensive psychiatric and rehabilitation services to adults with serious mental health disorders. The services are designed to assist eligible clients, age 18 or older, in the development of skills to become more self-sufficient and to move toward increasing levels of independent functioning with the goal of community reintegration.
Pursuant to WIC Section 5912, Crestwood Behavioral Health, Inc.’s rates will increase annually by 3.5 percent. The rates are established by the State Department of Health Care Services.
HHSA has contracted with Crestwood Behavioral Health, Inc. since 2007. The Board approved Agreement for Services #25, 010-S1711 on May 17, 2016 (File 16-0391, Item 19), and on September 16, 2016, the Purchasing Agent signed Amendment 1 as authorized by the Board (File 16-0391, Item 19) as the Amendment included language revisions but no change to term or compensation. Amendment 2 to increase the maximum obligation by $1,200,000 and to incorporate the language revisions necessary to accommodate the statutorily-authorized rate increase effective July 1, 2017 was approved on May 23, 2017 (File 16-0391 version 2, item 8).
Due to a higher than anticipated utilization, HHSA now recommends the Board’s approval of Amendment 3 to Agreement for Services #25, 010-S1711, increasing the maximum obligation by $3,300,000 for a total NTE amount of $7,500,000, update rates in Exhibit B, and to extend the termination date to June 30, 2021. The current contract term is July 1, 2016 through June 30, 2019.
In accordance with Board of Supervisors Policy C-17, Section 7.11 “Contracts over $100,000,” prior to finalizing this Amendment, HHSA sought and received a review of the scope of services and the contractor’s professional qualifications by a group of individuals qualified to judge the contractor’s ability to perform the services, including one representative from outside the department requesting the services.
ALTERNATIVES:
Disapproval of Amendment 3 to Agreement for Services #25, 010-S1711 will result in severe difficulty meeting the service demands of the community and may disrupt the progress and continuity of care for clients currently receiving services from Crestwood Behavioral Health, Inc.
PRIOR BOARD ACTION:
1) 05/17/2016, 16-0391 v.1, HHSA Crestwood
2) 05/23/2017, 16-0391 v.2, HHSA Crestwood Amendment 2
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
N/A
CAO RECOMMENDATION:
It is recommended that the Board approve this item.
FINANCIAL IMPACT:
There is no Net County Cost associated with this Agenda item. Sufficient appropriations were included in the fiscal year 2018-19 budget, and will be included in future budgets for the term of the Agreement.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Obtain signature of Chair on two (2) original Amendment 3 of Agreement for Services #25 (010-S1711).
2) Forward one (1) fully executed document to HHSA-Contracts Unit, 3057 Briw Road, Placerville for further processing.
STRATEGIC PLAN COMPONENT:
Healthy Communities: “Improved health, well-being and self-sufficiency of El Dorado County communities, residents, and visitors.”
CONTACT
Don Semon, Director, Health and Human Services Agency