To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Amendment Agreement #24-794-8(38) with John Muir 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 Contract Amendment Agreement #24-794-8(38) with John Muir Behavioral Health, a non-profit corporation, effective June 1, 2024, to amend Novation Contract #24-794-8(35), to increase the payment limit by $2,316,324, from $1,500,000 to a new payment limit of $3,816,324 to provide additional inpatient psychiatric hospital services to County-referred adults, children and adolescents, with no change in the term of July 1, 2023 through June 30, 2024, and to increase the six-month automatic extension payment limit by $658,162, from $1,250,000 to a new payment limit of $1,908,162 through December 31, 2024.
FISCAL IMPACT:
Approval of this Amendment will result in additional expenditures of up to $2,316,324 through June 30, 2024, and up to $658,162 for the automatic extension through December 31, 2024, and will be funded 100% by Mental Health Realignment revenues. (No rate increase)
BACKGROUND:
This contract meets the social needs of County’s population by providing inpatient psychiatric hospital services to County-referred adults, children and adolescents. The Behavioral Health Services Department (BHSD) has been contracting with John Muir Behavioral Health since May 1, 2000. 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. The BHSD Contract Monitoring staff meet on a regular basis to ensure monitoring of performance measures set forth in the contract are upheld. This contractor has been a longstanding partner in previous projects, fostering a deep understanding of our organization's mission, values, and long-term objectives.
On January 17, 2023, the Board of Supervisors approved Novation Contract #24-794-8(35) with John Muir Behavioral Health, in an amount not to exceed $1,500,000, for the provision of inpatient psychiatric hospital services to county-referred adults and adolescents for the period July 1, 2023 through June 30, 2024, which included a six-month automatic extension through December 31, 2024 in an amount not to exceed $1,20,000. This contract included mutual indemnification to hold harmless both parties for any claims arising out of the performance of this contract.
This contractor’s utilization has been higher than anticipated, therefore the BHSD Division requested the contract payment limit be increased to ensure proper compensation and to ensure all inpatient psychiatric hospital services to County-referred adults, children, and adolescents in Contra Costa County.
Approval of Amendment Agreement #24-794-8(38) will allow the contractor to provide additional inpatient psychiatric hospital services through June 30, 2024, including an automatic extension through December 31, 2024. This contract includes mutual indemnification to hold harmless both parties for any claims arising out of the performance of this contract.
CONSEQUENCE OF NEGATIVE ACTION:
If this Amendment is not approved, BHSD clients will not receive needed inpatient psychiatric services from the contractors’ facility putting their health and safety further at risk.
CHILDREN’S IMPACT STATEMENT:
This program supports the following Board of Supervisors’ community outcome: “Communities that are Safe and Provide a High Quality of Life for Children and Families”. Expected program outcomes include a decrease in the need for inpatient care and placement at a lower level of care.