To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment for Services Provided by Crestwood Behavioral Health, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $3,616.00 to Crestwood Behavioral Health, Inc., a corporation, for the provision of outpatient Medi-Cal mental health services to Contra Costa County residents that exceeded the contract payment limit and was provided in good faith for the period June 29, 2024 through June 30, 2024.
FISCAL IMPACT:
Approval of this payment will result in budgeted expenditures of up to $3,616.00 and will be funded 100% by Mental Health Realignment revenue.
BACKGROUND:
The Behavioral Health Services Department has been contracting with Crestwood Behavioral Health, Inc., since January 2007 to provide transitional residential treatment, rehabilitative services, medication support, and mental health services to Severe and Persistent Mental Illness (SPMI) adult clients. This contract meets the social needs of the County’s population by providing transitional residential treatment, rehabilitative services, medication support, and mental health services to SPMI adult clients at its Crestwood Healing Center. This contractor was selected as the sole source provider as they are the only licensed facility in Contra Costa County.
On October 17, 2023, the Board of Supervisors approved Contract #74-286-24 with Crestwood Behavioral Health, Inc., in an amount not to exceed $1,319,840, for the provision of residential treatment and mental health services to SPMI adults for the period from July 1, 2023 through June 30, 2024.
Due to an administrative oversight in the calculation of the correct number of days in the contract due to leap year shortening the contract by one day. As a result, there are insufficient funds to cover the additional services provided by the Contractor in the amount of $3,616.00.
Therefore, the County has determined that Crestwood Behavioral Health, Inc. 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 $3,616 to Crestwood Behavioral Health, Inc.
CONSEQUENCE OF NEGATIVE ACTION:
If this request is not approved, Contractor will not be paid for services provided to Contra Costa County residents outside of the contract payment limit rendered in good faith.