To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #24-681-53(8) with Crestwood Behavioral Health, 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 #24-681-53(8) with Crestwood Behavioral Health, Inc., a corporation, in an amount not to exceed $6,194,415, to provide augmented board and care services for adults with mental illness in Contra Costa County for the period July 1, 2026 through June 30, 2027.
FISCAL IMPACT:
Approval of this Contract will result in annual contractual service expenditures of up to $6,194,415 and will be funded 100% by Behavioral Health Services Act (BHSA) revenues. Beginning July 1, 2026, the Mental Health Services Act (MHSA) funding fully transitions to the BHSA to reflect full implementation and oversight required under California Proposition 1, approved by voters in March 2024, which modernizes MHSA by renaming it the BHSA and redirecting funding to support building a comprehensive, integrated, and unified behavioral health system statewide.
BACKGROUND:
This Contract meets the social needs of the County's population by augmenting room and board and providing twenty-four-hour emergency residential care and supervision to eligible adults with mental illness, who are specifically referred by the County’s Behavioral Health Program Staff. Adult residential services for psychiatric clients require stringent accreditation and compliance standards, as well as licenses and regulatory approvals that a limited number of providers possess. This Contractor has been a part of the County’s Provider Network providing these services and fostering a deep understanding of the CCHP’s organization, mission, values, and long-term objectives since December 2000.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227; California Code of Regulations, Title 9, Section 523 et seq.; California Welfare and Institutions Code Section 5600 et. seq (known as The Bronzan-McCorquodale Act). This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. The Behavioral Health’s Quality Management, Utilization Management and Contract Monitor staff meet on regular basis to ensure monitoring and performance measures in the contract are upheld. These contracted services were determined to be exempt from Administrative Bulletin 600.3 solicitation requirements by the Public Works Department’s Purchasing Division.
On July 22, 2025, the Board of Supervisors approved Contract #24-681-53(7) with Crestwood Behavioral Health, Inc., in an amount not to exceed $6,440,060 to provide augmented board and care services for the period July 1, 2025 through June 30, 2026.
Approval of Contract #24-681-53(8) will allow the Contractor to continue providing augmented board and care services through June 30, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, the Contractor will not be able to provide augmented board and care services to adults with mental illness in Contra Costa County which could result in increased wait times for services.