To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Amendment #24-794-12(15) with BHC Fremont Hospital, Inc.
☒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 #24-794-12(15) with BHC Fremont Hospital, Inc., a corporation, effective June 1, 2024, to amend Novation Contract #24-794-12(14), to increase the payment limit by $1,281,069, from $450,000, to a new payment limit of $1,731,069, with no change in the term of July 1, 2023 through June 30, 2024 and to increase the automatic extension payment limit by $640,534, from $225,000 to a new payment limit of $865,534 through December 31, 2024.
FISCAL IMPACT:
Approval of this Amendment will result in additional expenditures of up to $1,281,069 through June 30, 2024, and up to $640,534 for the automatic extension through December 31, 2024, and is funded 100% by Mental Health Realignment funds. (No rate increase)
BACKGROUND:
Assembly Bill (AB) 757, (Chapter 633, Statutes of 1994), authorized the transfer of state funding for Fee-For-Service/Medi-Cal (FFS/MC) acute psychiatric inpatient hospital services from the Department of Health Services (DHCS) to the Department of Mental Health (DMH). On January 1, 1995, the DMH transferred these funds and the responsibility for authorization and funding of Medi-Cal acute psychiatric inpatient hospital services to counties that chose to participate in this program. County has been contracting with BHC Fremont Hospital, Inc. under this contract since January 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. The Behavioral health Services Divisions (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 July 18, 2023, the Board of Supervisors approved Novation Contract #24-794-12(14) with BHC Fremont Hospital, Inc. in an amount not to exceed $450,000 for the provision of inpatient psychiatric hospital services to County-referred adolescents and adults for the period from July 1, 2023 through June 30, 2024, which included an automatic extension not to exceed $225,000 through December 31, 2024.
At the time of negotiations, the payment limit was based on target levels of utilization. However, the utilization and service units during the term of the contract were higher than originally anticipated.
Approval of Contract Amendment Agreement #24-794-12(15) will allow the contractor to provide additional inpatient psychiatric services through June 30, 2024, including an automatic extension through December 31, 2024.
CONSEQUENCE OF NEGATIVE ACTION:
If this Amendment is not approved, BHSD clients will not receive inpatient psychiatric services from this contractor’s facility, further putting their health and safety 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.