To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Rescind Prior Board Action Pertaining to Contracted Services with Naomi Natalie Terao, MD, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
RESCIND prior Board action of October 7, 2025 (C.105.) which approved and authorized the Health Services Director, or designee, to execute on behalf of the County Contract #74-735 with Naomi Natalie Terao, M.D., in an amount not to exceed $425,000 to provide outpatient psychiatric care services for mental health patients with a substance abuse disorder in Contra Costa County for the period October 1, 2025 through September 30, 2026; and APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #74-735 with Naomi Natalie Terao, M.D., Inc., a professional corporation, in an amount not to exceed $425,000, to provide addiction medicine services for mental health patients with substance abuse disorders in Contra Costa County, for the period January 1, 2026 through December 31, 2026.
FISCAL IMPACT:
Approval of this Contract will result in annual expenditures of up to $425,000 and will be funded as budgeted by the department, 100% by Mental Health Measure X Funds.
BACKGROUND:
This Contract meets the social needs of County’s population by providing Measure X funded mental health addiction medicine services including, but not limited to diagnosing, counseling, evaluating, medication management and providing medical and psychiatric therapeutic treatment services to mental health patients with substance abuse disorders in Contra Costa County. This is a new Contractor who will provide these services and foster a deep understanding of the County’s organization, mission, values, and long-term objectives starting January 1, 2026.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000; and Welfare and Institutions Code, § 5600 et seq. (The Bronzan - McCorquodale Act). Health Services Personnel approved this Contract to ensure no conflicts with labor relations. Acting as a Mental Health Plan designated by Department of Health Care Services (DHCS), Contra Costa Behavioral Health is required to meet federal and state network adequacy standards to ensure that all Medi-Cal managed care covered services are available and accessible to beneficiaries in accordance with timely access and time and distance standards. Contractor currently cooperates with and participates in BHSD’s Quality Management Program which consists of quality improvement activities to improve the quality of care and services and member experience. Cooperation includes collection and evaluation of performance measurement data and participation in the organization’s clinical and service measure Quality Improvement Programs. These Physician services were determined to be exempt from Administrative Bulletin 600.3 solicitation requirements by the Public Works Department’s Purchasing Division.
On October 7, 2025 (C.105), the Board of Supervisors approved Contract #74-735 with Naomi Natalie Terao, M.D., in an amount not to exceed $425,000, for the provision of outpatient psychiatric care services for mental health patients with substance abuse disorders in Contra Costa County, for the period October 1, 2025 through September 30, 2026, however, the Contractor’s name, entity status, term, and services to be provided were incorrect.
Approval of this Board Order will rescind the prior Board action and allow the Department to correct the Board Order to read Naomi Natalie Terao, MD, Inc., a professional corporation, to provide addiction medicine services for the period January 1, 2026 through December 31, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
If this recommendation is not approved, the prior incorrect Board action will stand and the department will not have Board authorization with the correct Contract information.