To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment/Extension #74-315-30 with EMBRACE
☒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 #74-315-30 with EMBRACE, a non-profit corporation, effective January 31, 2026, to amend Contract #74-315-29, to increase the payment limit by $2,453,478, from $1,815,232 to a new payment limit of $4,268,710, and to extend the termination date from June 30, 2026 to December 31, 2026, for additional Medi-Cal specialty mental health services for Seriously Emotionally Disturbed (SED) children, youth, and their families.
FISCAL IMPACT:
Approval of this Contract Amendment/Extension will result in additional expenditures of up to $2,453,478 and will be funded 50% by Federal Medi-Cal revenues and 50% by Mental Health Realignment funds. (Rate increase)
BACKGROUND:
The Contract meets the social needs of the County by providing Medi-Cal specialty mental health services to SED children who have been discharged from a hospital or have failed in other placements. Contractor also provides a Multisystemic Behavioral and Functional Family Therapy program for adolescents who are discharged from Juvenile Hall and the Orin Allen Youth Rehabilitation Facility. This Contractor has been providing these mental health services while fostering a deep understanding of the Behavioral Health Services Department organizations mission, values, and long-term objectives since September 2007.
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 #74-315-29 with EMBRACE, in an amount not to exceed $1,815,232, for the provision of Medi-Cal specialty mental health services for SED children, youth and their families, for the period July 1, 2025 through June 30, 2026.
Approval of Contract Amendment/Extension #74-315-30 will allow the Contractor to provide additional 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, SED children and youth involved in the juvenile justice system 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.
CHILDREN’S IMPACT STATEMENT:
This program supports the following Board of Supervisors’ community outcomes: “Children Ready For and Succeeding in School”; “Families that are Safe, Stable, and Nurturing”; and “Communities that are Safe and Provide a High Quality of Life for Children and Families”. Expected program outcomes include an increase in positive social and emotional development as measured by the Child and Adolescent Functional Assessment Scale (CAFAS).