To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment/Extension #74-475-169(5) with Psynergy Programs, Inc.
☒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 #74-475-169(5) with Psynergy Programs, Inc., a corporation, effective April 1, 2026, to amend Contract #74-475-169(4), to increase the payment limit by $293,340, from $338,489 to an amount not to exceed $631,919, 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 diagnosed with Serious Mental Illness (SMI) and Severe and Persistent Mental Illness (SPMI).
FISCAL IMPACT:
Approval of this Contract Amendment/Extension will result in additional expenditures of up to $293,340 and will be funded 66% by Federal Medi-Cal revenues and 34% by Mental Health Realignment funds. (Rate increase)
BACKGROUND:
This Contract meets the social needs of County’s population by providing Medi-Cal specialty mental health services focusing on adults diagnosed with SMI and SPMI who are stepping down from the Institutes for Mental Diseases (IMD) levels of care and transitioning back into the community. This Contractor has been providing these mental health services while fostering a deep understanding of the Behavioral Health Service Departments organizations mission, values, and long-term objectives since July 2023.
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 #74-475-169(4) with Psynergy Programs, Inc., in an amount not to exceed $338,489, for the provision of Medi-Cal specialty mental health services for adults diagnosed with SMI and SPMI, for the period July 1, 2025 through June 30, 2026.
Approval of Contract Amendment/Extension #74-475-169(5) will allow the Contractor to provide additional Medi-Cal specialty mental health services through December 31, 2026. This Contract is delayed due to administrative oversight and lack of real time knowledge of expenditures.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, there will be fewer Medi-Cal specialty mental health services available for adults diagnosed with SMI and SPMI as the County solicits and engages an alternative Contractor.