To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Payment for Services Provided by Paradise Adolescent Homes, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $32,329.06 to Paradise Adolescent Homes, Inc., a non-profit corporation, for additional Medi-Cal Specialty mental health services for Seriously Emotionally Disturbed (SED) youth in Contra Costa County provided during the period April 1, 2025 through June 30, 2025, as recommended by the Health Services Director.
FISCAL IMPACT:
Approval of this action will result in a one-time expenditure in an amount of $32,329.06 and will be funded 50% by Federal Medi-Cal funds and 50% by State Medi-Cal funds.
BACKGROUND:
This Contract meets the social needs of County’s population by providing community-based Medi-Cal Specialty mental health services to youth with emotional and behavioral problems to improve school performance, reduce unsafe behavioral practices, and reduce the need for out-of-home placements. This Contractor has been providing these services to the County since January 2021.
On July 9, 2024, the Board of Supervisors approved Contract #74-622-7 with Paradise Adolescent Homes, Inc., in an amount not to exceed $395,910, for the provision of Medi-Cal Specialty mental health services for SED youth for the period from July 1, 2024 through June 30, 2025.
The Contractor is entitled to payment for the reasonable value of its services under the equitable relief theory of quantum meruit. That theory provides that where a Contractor has been asked to provide services without a valid contract, and the Contractor does so to the benefit of the County, the Contractor is entitled to recover the reasonable value of those services.
Due to the combined services for April, May and June of 2025 exceeding projections, the anticipated service levels, and the invoicing reports being released the month following services, the effect of the shortfall in the contract payment limit was not detected until it was too late to process a contract amendment request. The Department cannot pay the Contractor for services rendered that exceed the contract payment limit. As such, the Department recommends that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $32,329.06.
CONSEQUENCE OF NEGATIVE ACTION:
If this payment is not approved, the Contractor will not be paid for services requested by County staff and provided by Contractor in good faith.
CHILDREN’S IMPACT STATEMENT:
The recommendation supports the following children's outcome(s):” and then include whichever of the following apply (1) Children Ready for and Succeeding in School; (2) Children and Youth Healthy and Preparing for Productive Adulthood; (3) Families that are Safe, Stable and Nurturing; and (4) Communities that are Safe and Provide a High Quality of Life for Children and Families.