To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Agreement #74-765 with California Mental Health Services Authority
☒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 Participation Agreement #74-765 with California Mental Health Services Authority (CalMHSA), a government agency, in an amount not to exceed $93,100, to act as the fiscal and administrative agent for County’s participation in the External Quality Review (EQR) Audit and Performance Improvement Projects (PIP) Program for the period January 1, 2026 through December 31, 2026.
FISCAL IMPACT:
Approval of this Participation Agreement will result in contractual service expenditures of up to $93,100 and will be funded 100% by Alcohol and Other Drugs Services (AODS) Administrative funds.
BACKGROUND:
California Advancing and Innovating Medi-Cal (CalAIM) Act requires each state Medicaid agency to produce a written quality strategy to access and improve the quality of health care and services. The Department of Health Care Services (DHCS) has identified measures that County Behavioral Health Plans (BHPs) shall report to DHCS as part of their Quality Improvement Systems on an annual basis. Counties are required to meet Minimum Performance Level of the standards set forth by DHCS, or monetary sanctions could be imposed.
Through this Participation Agreement, Contractor will complete the FY25/26 EQR audits related to the SmartCare Electronic Health Record (HER) System, including identification and completion of portions of the Information Systems Capability Assessment Tool (ISCAT) to ensure that the County is compliant with Managed Care Performance (MCP) standards and requirements. Contractor will also provide regular PIP coaching and consultation to assist the County with utilization of quality improvement tools and strategies to support PIP progress. This Participation Agreement was approved by Health Services Personnel to ensure there is no conflict with labor relations. This Contractor was approved by the Public Works Department’s Purchasing Division on February 18, 2026.
Under new Participation Agreement #74-765, Contractor will act as the fiscal and administrative agent for County’s participation in the EQR Audit and PIP Program through December 31, 2026. This Agreement includes a mutual indemnification provision requiring both parties to defend, indemnify, save and hold harmless each other for claims arising under the Agreement. This Agreement was delayed due to ongoing negotiations between the Contractor and the Division.
CONSEQUENCE OF NEGATIVE ACTION:
If this Participation Agreement is not approved, the County will not be compliant with MCP standards and requirements.