To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment/Extension #24-712-14 with Telecare Corporation
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract Amendment/Extension #24-712-14 with Telecare Corporation, a corporation, effective June 30, 2026, to amend Contract #24-712-13, to increase the payment limit by $1,584,970, from $3,107,785 to an amount not to exceed $4,692,755, and to extend the termination date from June 30, 2026 to December 31, 2026, to provide additional Medi-Cal specialty mental health services for adults with mental illness.
FISCAL IMPACT:
Approval of this Contract Amendment/Extension will result in additional expenditures of up to $1,584,970 and will be funded 50% by Federal Medi-Cal revenues and 50% by Mental Health Realignment funds. (Rate increase)
BACKGROUND:
This Contract meets the social needs of County’s population by providing Medi-Cal for specialty mental health services, for adults, age eighteen (18) and older, who require support to avoid hospitalization or are being discharged from the hospital or long-term locked facilities and require step-down care to transition to community living. The Behavioral Health Services Department has been contracting with Telecare Corporation since December 2013.
This Contract is entered into under and subject to the following legal authorities: Welfare and Institutions Code, § 5600 et seq. (The Bronzan McCorquodale Act); California Code of Regulations (“CCR”), Title 9, § 523 et seq. (Community Mental Health Services) and California Government Code §§ 26227 and 31000. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. The Behavioral Health’s Quality Management, Utilization Management and Contract Monitor Staff meet on a regular basis to ensure monitoring and performance measures in the Contract are upheld. Per Administrative Bulletin 600.3, the Department has posted a continuous Request for Qualifications and maintains a current qualified list of vendors at all times.
On July 22, 2025, the Board of Supervisors approved Contract #24-712-13 with Telecare Corporation, in an amount not to exceed $3,107,785, for the provision of Medi-Cal specialty mental health services for adults with mental illness, for the period July 1, 2025 through June 30, 2026.
Approval of Contract Amendment/Extension #24-712-14 will allow the Contractor to provide additional Medi-Cal specialty mental health services through December 31, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment/Extension is not approved, County clients will not have access to Contractor’s Medi-Cal specialty mental health services which may result in a reduction of services and placement in higher levels of care.