To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment for Services Provided by Ever Well Health Systems, LLC
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $14,776 to Ever Well Health Systems, LLC, a limited liability company, for the provision of residential and mental health services to adults diagnosed with Serious Mental Illness (SMI) and Serious Persistent Mental Illness (SPMI) that exceeded the contract payment limit and was provided in good faith for the period June 1, 2023 through June 30, 2023.
FISCAL IMPACT:
This retro payment in the amount of $14,776 is funded 76% by Mental Health Services Act ($11,229) and 24% by Mental Health Realignment funds ($3,547) revenue.
BACKGROUND:
The Behavioral Health Services Department has been contracting with Ever Well Health Systems, LLC since December 2020 to provide residential and mental health services to adults diagnosed with SMI and SPMI. This contract meets the social needs of county’s population by providing residential facilities for adults who require support and are being discharged from state hospitals or psychiatric health facilities and require step-down care to transition to community living.
On September 13, 2022, the Board of Supervisors approved Novation Contract #74-627-2 with Ever Well Health Systems, LLC, in the amount of $511,667, for the provision of residential and mental health services to adults diagnosed with SMI and SPMI being stepped down from Institutes for Mental Diseases (IMD) levels of care and to transition back into the community, for the period from July 1, 2022 through June 30, 2023, which included a six month automatic extension through December 31, 2023, in the amount not to exceed $255,833.
Due to a much higher anticipated level of residential treatment and mental health services to SMI and SPMI adults, there are insufficient funds to cover the additional services provided by the contractor in the amount of $14,776.
Therefore, the county has determined that Ever Well Health Systems, LLC is entitled to payment for the reasonable value of their services under the equitable relief theory of quantum meruit. That theory provides that where a person has been asked to provide services without a valid contract, and the provider does so to the benefit of the recipient, the provider is entitled to recover the reasonable value of those services. The contractor has provided services at the request of the county after the original contract payment limit had been reached. The Department cannot pay contractor for services rendered that exceed the contract limits. As such, the Department recommends that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $14,776 to Ever Well Health Systems, LLC.
CONSEQUENCE OF NEGATIVE ACTION:
If this request is not approved, the contractor will not be paid for residential treatment and mental health services provided to SMI and SPMI adults outside of the contract payment limit rendered in good faith.
☒Recommendation of the County Administrator
☐ Recommendation of Board Committee
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I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. |
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ATTESTED: |
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Monica Nino, County Administrator and Clerk of the Board of Supervisors |
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By: |