To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Novation Contract #24-794-9 (24) with BHC Sierra Vista 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 Novation Contract #24-794-9(24) with BHC Sierra Vista Hospital, Inc., a corporation, in an amount not to exceed $200,000, to provide inpatient psychiatric hospital services to County-referred adults and adolescents for the period from July 1, 2024 through June 30, 2025, which includes a six-month automatic extension through December 31, 2025, in an amount not to exceed $100,000.
FISCAL IMPACT:
Approval of this Novation Contract will result in annual budgeted expenditures of up to $200,000 and $100,000 during the six-month automatic extension period and will be funded 100% by Mental Health Realignment revenues.
BACKGROUND:
The Behavioral Health Services Department (BHSD) has been contracting with BHC Sierra Vista Hospital, Inc. since November 1, 2006. This Contract meets the social needs of County’s population by providing inpatient psychiatric hospital services to County-referred adults and adolescents.
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. These contracted services were determined to be exempt from Administrative Bulletin 600.3 solicitation requirements by the Public Works Purchasing Division.
On August 1, 2023, the Board of Supervisors approved Novation Contract #24-794-9(19) with BHC Sierra Vista Hospital, Inc., in an amount not to exceed $75,000, for the provision of inpatient psychiatric hospital services to County-referred adults and adolescents for the period from July 1, 2023 through June 30, 2024, which included a six-month automatic extension through December 31, 2024, in an amount not to exceed $37,500.
On June 25, 2024, the Board of Supervisors approved Amendment Agreement #24-794-9(23) with BHC Sierra Vista Hospital, Inc., to increase the payment limit by $274,026 to a new payment limit of $349,026 for additional inpatient psychiatric hospital services with no change in the term and to increase the six-month automatic extension payment limit by $137,013 to a new payment limit of $174,513 through December 31, 2024.
Approval of Novation Contract #24-794-9(24) will allow the Contractor to continue to provide inpatient psychiatric hospital services through June 30, 2025. This Contract includes both parties agreeing to defend, save harmless and indemnify each other for any claims arising from or connected with the operations or the services under this Contract.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, County’s mental health clients will not receive needed inpatient psychiatric services from Contractor’s facility.
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.