To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #27-917-6 with La Cheim School, Inc. (dba La Cheim Behavioral Health Services)
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #27-917-6 with La Cheim School, Inc. (dba La Cheim Behavioral Health Services), a non-profit corporation, in an amount not to exceed $3,000,000, to provide behavioral health services for Partial Hospitalization Programs (PHP) and Intensive Outpatient Programs (IOP) for Contra Costa Health Plan (CCHP) members, for the period October 1, 2026 through September 30, 2028.
FISCAL IMPACT:
Approval of this Contract will result in contractual service expenditures of up to $3,000,000 over a two-year period and will be funded 100% by CCHP Enterprise Fund III revenues.
BACKGROUND:
CCHP has an obligation to provide certain medical specialized services for its members under the terms of their Individual and Group Health Plan membership contracts with the County. This Contractor has been a part of the CCHP Provider Network providing PHP and IOP behavioral services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since October 1, 2013.
CCHP must also maintain network adequacy in accordance with applicable state and federal requirements, ensuring members have timely access to clinically appropriate services. The Contractor supports CCHP in meeting these obligations by providing specialized offerings that are limited within the local market, thereby helping CCHP uphold access-to-care standards and avoid delays in service delivery.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000; Health and Safety Code § 1451. Health Services Personnel approved this Contract to ensure no conflicts with labor relations in June 2023. Contractor currently cooperates with and participates in CCHP’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. Medicare and Medicaid programs have stringent accreditation and compliance standards that healthcare providers must meet. La Cheim School, Inc. (dba La Cheim Behavioral Health Services), has a demonstrated history of maintaining the required accreditations and compliance with these federal regulations. Per Administrative Bulletin 600.4, CCHP Physician services are exempt from solicitation requirements.
On December 5, 2023, the Board of Supervisors approved Contract #27-917-4 with La Cheim School, Inc. (dba La Cheim Behavioral Health Services), in an amount not to exceed $7,500,000, for the provision of behavioral health services for PHP and IOP for CCHP members, for the period October 1, 2023 through September 30, 2026.
On October 7, 2025, the Board of Supervisors approved Contract Amendment #27-917-5 with La Cheim School, Inc. (dba La Cheim Behavioral Health Services), effective January 1, 2026, to include Dual Eligible Special Needs Plan (D-SNP) requirements and obligations, to allow Contractor to provide specialized care to beneficiaries who are dually eligible for Medicare and Medi-Cal and offer care coordination and wrap-around services with no change in the payment limit of $7,500,000 or term.
Approval of Contract #27-917-6 will allow the Contractor to continue to provide behavioral health services for PHP and IOP for CCHP members through September 30, 2028.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, CCHP members will not have access to Contractor’s behavioral health services for PHP and IOP under the terms of their Individual and Group Health Plan memberships which could cause delays in service to CCHP members.