To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Novation Contract #24-794-12(14) with BHC Fremont Hospital, Inc. (dba Fremont Hospital)
☒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 Novation Contract #24-794-12(14) with BHC Fremont Hospital, Inc. (dba Fremont Hospital), a corporation, in an amount not to exceed $450,000, to provide inpatient psychiatric hospital services to County-referred adults and adolescents for the period from July 1, 2023 through June 30, 2024, which includes a six-month automatic extension through December 31, 2024, in an amount not to exceed $225,000.
FISCAL IMPACT:
Approval of this contract will result in budgeted expenditures of up to $450,000 for Fiscal Year 2023-24 and will be funded 100% by Mental Health Realignment funds. (Rate increase)
BACKGROUND:
The Behavioral Health Services Department has been contracting with BHC Fremont Hospital, Inc. (dba Fremont Hospital) since January 2018 to provide inpatient psychiatric hospital services to County-referred adults and adolescents. This contract is entered into under and subject to the following legal authorities: 42 U.S.C. §§1396, §300e; §1395; California Welfare and Institutions Code §§14000, et seq.; California Health and Safety Code, §§1340, et seq.; California Government Code §§ 25209.6, 26227, and 31000.
There are a limited number of acute-care inpatient psychiatric beds in California and BHC Fremont Hospital, Inc. (dba Fremont Hospital) is one of the facilities in the state with the qualifications and capabilities to provide acute inpatient psychiatric care and is selected for admissions when it is the closest facility. 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. This contract approved by the Public Works Department’s Purchasing Division on September 25, 2023.
On July 26, 2022, the Board of Supervisors approved Novation Contract #24-794-12(13), in an amount not to exceed $700,000, for the provision of inpatient psychiatric hospital services, for the period from July 1, 2022 through June 30, 2023, which included a six-month automatic extension through December 31, 2023, in an amount not to exceed $350,000.
Approval of Novation Contract #24-794-12(14) replaces the automatic extension and will allow this contractor to continue providing inpatient psychiatric services through June 30, 2024.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, county’s mental health clients will not receive needed inpatient psychiatric services from contractor’s facility.