To: Board of Supervisors
From: Dr. Ori Tzvieli, Interim Health Services Director
Report Title: Cancellation Agreement #74-394-20 and Contract #74-394-21 with Ronald L. Leon, MD, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Interim Health Services Director, or designee, to execute on behalf of the County, as follows: (1) Cancellation Agreement #74-394-20 with Ronald L. Leon, MD, Inc., a Corporation, effective at the end of business on July 31, 2025; and (2) Contract #74-394-21 with Ronald L. Leon, MD, Inc., a Corporation, in an amount not to exceed $300,000, to provide outpatient psychiatric care services for adults with mental illness in East Contra Costa County, for the period August 1, 2025 through July 31, 2026.
FISCAL IMPACT:
Approval of this Contract will result in annual expenditures up to $300,000 and will be funded 100% by Mental Health Realignment revenues.
BACKGROUND:
This Contract meets the social needs of County’s population by providing psychiatric services including, but not limited to diagnosing, counseling, evaluating, medication management and providing medical and psychiatric therapeutic treatment for mentally ill adults in East Contra Costa County. This Contractor has been providing outpatient psychiatric care services for the County since April 2010.
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 February 25, 2025, the Board of Supervisors approved Contract #74-394-19 with Ronald L. Leon, MD, Inc., in an amount not to exceed $255,000, for the provision of outpatient psychiatric care services for adults with mental illness in East Contra Costa County, for the period April 1, 2025 through March 31, 2026.
In consideration of the Contractor’s agreement to continue providing outpatient psychiatric care services and the departments need to increase rates to maintain an adequate network for members to meet Department of Health Care Services (DHCS) and Department of Managed Health Care (DMHC) mandates, the department and Contractor have agreed to (1) mutual cancellation of the current Contract in accordance with General Conditions Paragraph 5 (Termination), of the Contract (Cancellation Agreement #74-394-20) will accomplish this cancellation, and (2) establish a new Contract with the correct terms and conditions for the next year.
Under new Contract #74-394-21, Contractor will provide outpatient psychiatric care services for adults with mental illness in East Contra Costa County for the period August 1, 2025 through July 31, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
If this new Contract is not approved, the necessary psychiatric services needed for patient care will not be available or will create increased wait times due to the limited number of specialty providers available within the community.