To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment for Services Provided by Psynergy Programs, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $101,673.78 to Psynergy Programs, Inc., a corporation, for the provision of Medi-Cal Specialty mental health services to adults diagnosed with Serious Mental Illness (SMI) and Serious Persistent Mental Illness (SPMI) that exceeded the contract payment limit and were provided in good faith for the period March 1, 2024 through June 30, 2024.
FISCAL IMPACT:
This retro payment in the amount of $101,673.78 is funded 100% by Federal Medi-Cal funds.
BACKGROUND:
This Contract meets the social needs of County’s population by providing Medi-Cal specialty mental health 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. The Behavioral Health Services Division (BHSD) has been contracting with Psynergy Programs, Inc., since July 2023 to provide Medi-Cal Specialty mental health services.
On October 17, 2023, the Board of Supervisors approved Contract #74-475-169 with Psynergy Programs, Inc., in an amount not to exceed $263,562, to provide Medi-Cal Specialty mental health services to adults diagnosed with SMI and SPMI for the period July 1, 2023 through June 30, 2024.
Due to a much higher anticipated level of Medi-Cal Specialty mental health services provided to adults diagnosed with SMI and SPMI, there are insufficient funds to cover the additional services provided by the Contractor in the amount of $101,673.78.
Therefore, the County has determined that Psynergy Programs, Inc. 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 $101,673.78 to Psynergy Programs, Inc.
CONSEQUENCE OF NEGATIVE ACTION:
If this request is not approved, Psynergy Programs, Inc. will not be paid for Medi-Cal Specialty mental health services provided outside of the contract payment limit rendered in good faith.