To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment for Services Provided by John Muir Behavioral Health
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $24,670.66 to John Muir Behavioral Health, a non-profit corporation, for the provision of inpatient psychiatric hospital services to county-referred adults and adolescents that exceeded the contract payment limit and were provided in good faith for the period June 13, 2023 through June 30, 2023.
FISCAL IMPACT:
This retro payment in the amount of $24,670.66 is funded 100% by Mental Health Realignment revenue.
BACKGROUND:
The Behavioral Health Services Department has been contracting with John Muir Behavioral Health since May 2000 to provide all necessary inpatient psychiatric hospital services to county-referred adults and adolescents, including maintaining facilities and providing organizational, and administrative capabilities needed to carry out its duties and responsibilities under this contract.
On July 18, 2023, the Board of Supervisors approved Contract #24-794-8(33) with John Muir Behavioral Health, in an amount not to exceed $1,200,000, for the provision of inpatient psychiatric hospital services to county-referred adults and adolescents for the period January 1, 2023 through June 30, 2023, including a six-month automatic extension through December 31, 2023 in an amount not to exceed $1,200,000.
Due to a much higher than anticipated number of inpatient psychiatric residents, there are insufficient funds to cover the additional services provided by the contractor in the amount of $24,670.66.
Therefore, the county has determined that John Muir Behavioral Health is entitled to payment for the reasonable value of their services under the equitable relief theory of quantum meruit. That theory provides that where a person has been asked to provide services without a valid contract, and the provider does so to the benefit of the recipient, the provider is entitled to recover the reasonable value of those services. The contractor has provided services at the request of the county after the original contract payment limit had been reached. The Department cannot pay contractor for services rendered that exceed the contract limits. As such, the Department recommends that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $24,670.66 to John Muir Behavioral Health.
CONSEQUENCE OF NEGATIVE ACTION:
If this request is not approved, contractor will not be paid for the additional inpatient psychiatric hospital services provided outside of the contract payment limit rendered in good faith.
CHILDREN’S IMPACT STATEMENT:
This program supports the following Board of Supervisors’ community outcome: “Communities that are Safe and Provide a High Quality of Life for Children and Families”. Expected program outcomes include a decrease in the need for inpatient care and placement at a lower level of care.