To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Novation Contract #24-794-15(14) with SJBH, LLC (dba San Jose Behavioral Health
☒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 #24-794-15(14) with SJBH, LLC (dba San Jose Behavioral Health), a limited liability company, in an amount not to exceed $2,200,000, to provide inpatient psychiatric hospital services to children, adolescent, and adult Clients referred and authorized by the County, for the period July 1, 2025 through June 30, 2026, which includes a six-month automatic extension through December 31, 2026.
FISCAL IMPACT:
Approval of this Contract will result in an annual contractual expenditure of up to $2,200,000 and will be funded as budgeted by the Division in FY 2025-26, 100% by Mental Health Realignment funds.
BACKGROUND:
This Contract meets the social needs of the County’s population by providing inpatient psychiatric hospital services to County-referred Clients. These services include but are not limited to routine and hospital-based ancillary services directly related to the psychiatric diagnosis for which they are admitted, bed and board, pharmaceutical, dietary, medical social services, therapeutic services, medical and non-medical supplies, appliances, equipment, and Physician services. The Behavioral Health Services Division (BHSD) has been contracting with SJBH, LLC (dba San Jose Behavioral Health) to provide these services and has been a longstanding partner in treating Contra Costa Clients, while fostering a deep understanding of the County’s mission, values and long-term objectives since October 2018.
This Contract is entered into under and subject to the following legal authorities: 42 U.S.C. 1395, et seq.; 42 U.S.C. 300e; Welfare and Institutions Code §§ 14000, et seq.; Health and Safety Code, §§ 1340-1399.904; California Government Code §§ 25209.6, 26227, and 31000. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. BHSD contracts with or makes every attempt to contract with every acute inpatient psychiatric facility within a 50-mile radius of the County. SJBH, LLC have a proven track record and established reputation within the psychiatric community which mitigates potential risks associated with the regulatory compliance and patient well-being. The BHSD’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, BHSD’s Physician services are exempt from solicitation requirements.
On October 22, 2024, the Board of Supervisors approved Novation Contract #24-794-15(12) with SJBH, LLC (dba San Jose Behavioral Health Hospital), in an amount not to exceed $300,000, for the provision of inpatient psychiatric hospital services to County referred Clients for the period July 1, 2024 through June 30, 2025, which included a six-month automatic extension in an amount not to exceed $150,000 through December 31, 2025.
On January 21, 2025, the Board of Supervisors approved Contract Amendment #24-794-15(13) with SJBH, LLC (dba San Jose Behavioral Health Hospital), effective January 1, 2025, to amend Novation Contract #24-794-15(12), to correct the Contractor’s dba name with no change in the original payment limit of $300,000 or term through June 30, 2025, and no change in the automatic extension payment limit of $150,000 or term through December 31, 2025.
Approval of Novation Contract #24-794-15(14) replaces the automatic extension under the prior Contract and allows the Contractor to continue providing inpatient psychiatric hospital services to children, adolescent, and adult Clients through December 31, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, County referred Clients will not have access to Contractor’s inpatient psychiatric hospital services and may go untreated.
CHILDREN’S IMPACT STATEMENT:
This Contract supports the following Board of Supervisors’ community outcomes: “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 increases in social connectedness, communication skills, parenting skills, and knowledge of the human service system in Contra Costa County.