To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract # 27-917-4 with La Cheim School, Inc. (dba La Cheim Behavioral Health Services)
☒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 #27-917-4 with La Cheim School, Inc. (dba La Cheim Behavioral Health Services), a non-profit corporation, in an amount not to exceed $7,500,000, to provide behavioral health services for Partial Hospitalization Programs (PHP) and Intensive Outpatient Programs (IOP) for Contra Costa Health Plan (CCHP) members, for the period October 1, 2023 through September 30, 2026.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $7,500,000 over a 3-year period and will be funded 100% by Hospital Enterprise Fund III revenues. (No rate increase)
BACKGROUND:
CCHP has an obligation to provide certain medical specialized services for its members under the terms of their Individual and Group Health Plan membership contracts with the county. This contractor has been a part of the CCHP Provider Network providing PHP and IOP behavioral services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since October 1, 2013.
This contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000; Health and Safety Code § 1451. Health Services Personnel approved this contract to ensure no conflicts with labor relations in June 2023. Contractor currently cooperates with and participates in CCHP’s Quality Management Program which consists of quality improvement activities to improve the quality of care and services and member experience. Cooperation includes collection and evaluation of performance measurement data and participation in the organization’s clinical and service measure Quality Improvement Programs. Medicare and Medicaid programs have stringent accreditation and compliance standards that healthcare providers must meet. La Cheim School, Inc. (dba La Cheim Behavioral Health Services), has a demonstrated history of maintaining the required accreditations and compliance with these federal regulations.
The nature of the PHP and IOP services needed is complex and requires seamless coordination, integration and collaboration with existing programs and systems. There are a total of 3 PHP/IOP providers in CCHP’s service area and CCHP is currently contracted with all 3 providers. This contract renewal will maintain comprehensive area coverage for the entire CCHP membership and meet the Knox-Keene Act, time and distance mandate required by the State of California Department of Managed Health Care (DMHC) services. This contractor has been approved by the Public Works Department’s Purchasing Division on August 23, 2023.
In September 2020, the County Administrator approved and the Purchasing Services Manager executed Contract #27-917-3 with La Cheim School, Inc. (dba La Cheim Behavioral Health Services), in an amount not to exceed $30,000, for the provision of behavioral health services for CCHP members, for the period October 1, 2020 through September 30, 2023.
Approval of Contract #27-917-4 will allow the contractor to continue providing behavioral health PHP and IOP services to CCHP members through September 30, 2026. The delay of this contract was due to prolonged service negotiations between contractor and division.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, certain specialized PHP and IOP behavioral health services for CCHP members under the terms of their Individual and Group Health Plan membership contract with the county will not be provided and services may be delayed.