To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Novation Contract #74-571-8 with Psynergy Programs, 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 #74-571-8 with Psynergy Programs, Inc., a corporation, in an amount not to exceed $450,267, to provide residential care services to adults diagnosed with Serious Mental Illness (SMI) and Serious Persistent Mental Illness (SPMI), for the period July 1, 2023 through June 30, 2024.
FISCAL IMPACT:
Approval of this contract will result in budgeted expenditures of up to $450,267 for FY 2023-24 and will be funded by 78% Mental Health Realignment ($350,602) and 22% Mental Health Services Act ($99,665) revenues. (Rate increase)
BACKGROUND:
This contract meets the social needs of county’s population by providing community-based residential care services focusing on adults diagnosed with SMI and SPMI who are stepping down from the Institutes for Mental Diseases (IMD) levels of care and transitioning back into the community.
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 provider was selected in collaboration with community stakeholder advisory bodies and was approved as part of the comprehensive Mental Health Services Act Three-Year Plan as required by State regulation. Providers interested in providing specialized services were invited proactively to participate in program development and offered the opportunity to submit interest at dozens of publicly noticed meetings. The services and vendors were identified in the formal Three-Year plan was approved on the following schedule that was noticed to the public and approved by the Board on August 1, 2023. The Three-Year plan was posed for public comment from June 5, 2023 through July 5, 2023, there was a Public Hearing at the Mental Health Commission meeting on July 5, 2023, and it was approved by the Board of Supervisors on August 1, 2023. The Behavioral Health’s Quality Management, Utilization Management and Contract Monitor staff meet on a regular basis to ensure monitoring and performance measures in the contract are upheld. This contract was approved by Health Services Personnel to ensure there is no conflict with labor relations.
On August 2, 2022, the Board of Supervisors approved Novation Contract #74-571-6 with Psynergy Programs, Inc., in an amount not to exceed $814,404, for the provision of residential and mental health services to adults diagnosed with SMI and SPMI, for the period July 1, 2022 through June 30, 2023, which included a six-month automatic extension through December 31, 2023 in an amount not to exceed $407,202.
Approval of Novation Contract #74-571-8 will allow the contractor to continue providing residential care services through June 30, 2024.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, there will be fewer residential care services available for adults diagnosed with SMI or SPMI as the county solicits and engages an alternative contractor.