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  Consent-Health & Human Services   # 20.       
Board of Supervisors Adult & Aging  
Meeting Date: 09/01/2020  
Brief Title:    Third Amendment to Agreement No. 20-04 with BHC Heritage Oaks Hospital
From: Karen Larsen, Director, Health and Human Services Agency
Staff Contact: Ian Evans, Adult and Aging Branch Director, Health and Human Services Agency, x8297
Supervisorial District Impact:

Subject
Approve third amendment to Agreement No. 20-04 with BHC Heritage Oaks Hospital, to add funding in the amount of $45,000 for 2019-20, for a new contract maximum of $1,776,812, for the provision of psychiatric health facility services, for the period of July 1, 2019 through June 30, 2022. (No general fund impact) (Larsen)
Recommended Action
  1. Approve third amendment to Agreement No. 20-04 with BHC Heritage Oaks Hospital, to add funding in the amount of $45,000 for fiscal year 2019-20, for a new contract maximum of $1,776,812, for the provision of psychiatric health facility services, for the period of July 1, 2019 through June 30, 2022; and
     
  2. Reaffirm delegated authority to the Director of the Yolo County Health and Human Services Agency or her/his designee to approve Option Year Letters not to exceed $500,000 per fiscal year for fiscal years 2022-2023 and 2023-2024.
Strategic Plan Goal(s)
Thriving Residents
Reason for Recommended Action/Background
An increase of $45,000 is needed to pay for an outstanding claim for services provided in fiscal year (FY) 19-20.
 
California state law mandates the County to provide psychiatric inpatient hospital services to eligible Medi-Cal and non-Medi-Cal mental health consumers.  Woodland Memorial Hospital is the designated and responsible hospital to provide these services to Yolo County residents, that are adults (age 18 or older), who meet California Welfare and Institutions Code criteria and/or who are a danger to self, others or are gravely disabled and require inpatient acute psychiatric services.
 
When no adult bed space is available at Woodland Memorial Hospital, or when a child or adolescent is in need of services, the patient must be treated by another qualified psychiatric hospital facility in the surrounding area.  BHC Heritage Oaks Hospital, being such a facility, is equipped to provide appropriate services to meet our clients’ needs.
 
The County is responsible for serving all Yolo Medi-Cal beneficiaries regardless of age.  The Contractor is not certified to bill Medi-Cal for services provided to Yolo Medi-Cal beneficiaries whose age is between 21 and 64 years of age. Thus, federal financial participation (FFP) is not available for these services. The stated contract amount is to be used for funding the services related to this particular group.
 
For services provided to Yolo Medi-Cal beneficiaries whose age is either 20 or younger, or 65 or older, the payment to the Contractor for this population is not paid directly via the County.  The Contractor bills Medi-Cal directly to receive funding via FFP and the County’s mental health realignment funds.  The State then reduces the amount used for this purpose from the monthly realignment apportionment to the County. 
 
All services described above require approval of the County via the Health and Human Services Agency (HHSA).  The contract details the approval process and method of payment.  HHSA monitors the use of the services regardless of the patient’s age.  The HHSA budget includes the estimated funding need for all services.
 
Additionally, when the agreement was initially approved by this Board, the Director of the Yolo County Health and Human Services Agency (HHSA Director) or her/his designee was delegated authority to exercise optional year extensions in an amount not to exceed $540,000 per FY, for a 5-year maximum payment obligation “not to exceed $2,700,000.” However, since then several amendments have been processed to increase or decrease the FY budgets, so the 5-year maximum payment obligation “not to exceed amount” of $2,700,000, is no longer reflected in the Agreement. Now, the Agreement provides for optional year extensions in the amount of $500,000 for FY22-23 and 23-24 and the not to exceed amount is $2,776,812.  Staff requests the Board reaffirm the HHSA Director’s authority to exercise the optional year extensions in an amount not to exceed $500,000 for FY2022-2023 and 2023-2024, without indicating a 5-year maximum payment amount. This will allow for future amendments to be processed that may increase and decrease FY contract budgets without having to revisit this delegated authority. The HHSA Director will not be able to increase the contract maximum beyond the $500,000 amount for FY 2022-23 and 2023-2024 without an amendment being approved by the County Board of Supervisors. All contract budget amendments will also be approved in accordance with County Procurement Policy.

Performance measures were included in Agreement No. 20-04 and are not being changed by this amendment.
Collaborations (including Board advisory groups and external partner agencies)
County Counsel has approved this Agreement as to form.
Competitive Bid Process
This agreement is being sought out by a Sole Source which has been approved by Procurement.

Fiscal Impact
Fiscal impact (see budgetary detail below)
Fiscal Impact (Expenditure)
Total cost of recommended action:    $   45,000
Amount budgeted for expenditure:    $   45,000
Additional expenditure authority needed:    $  
On-going commitment (annual cost):    $   500,000
Source of Funds for this Expenditure
$45,000
Explanation (Expenditure and/or Revenue)
Further explanation as needed:
No general funds are required by this action.  The action increases the contract maximum by $45,000 for Fiscal Year (FY) 2019-20, for a new contract maximum of $1,776,812, for the period of July 1, 2019 through June 30, 2022. These services will be funded by Realignment.  The amount of $45,000 is included in the HHSA adopted budget for FY2019-20. The related funding will be included in the requested budget process for future fiscal years.

The following is the breakdown of funding for this agreement.
  Fiscal Year 19-20 July 1, 2019
through
June 30, 2020
Fiscal Year 20-21 July 1, 2020
through
 June 30, 2021
Fiscal Year 21-22 July 1, 2021
through
 June 30, 2022
 
Total
 
MHSA $0 $0 $0 $0
Realignment $776,812 $500,000 $500,000 $1,776,812
Total $776,812 $500,000 $500,000 $1,776,812
 

The agreement also includes 2 option years of one-year extension options for FY’s 2022-23 and 2023-24 in an amount less than or equal to $500,000.

ption Year/
Fiscal Year (OY/FY)
Maximum Agreement Term Extension
Per OY/FY
Increased Funding Amount
Per OY/FY
Revised Agreement Maximum
Per OY/FY
First/
(FY 2022-23)
On or before                        June 30, 2023 Less than or equal to: $500,000 Less than or equal to: $2,276,812
Second/
(FY 2023-24)
On or before                        June 30, 2024 Less than or equal to $500,000 Less than or equal to $2,776,812


In no event shall the term of the Agreement extend beyond June 30, 2024 nor shall the total contract maximum exceed the amount of TWO MILLION SEVEN HUNDRED SEVENTY-SIX THOUSAND EIGHT HUNDRED TWELVE DOLLARS ($2,776,812), unless otherwise agreed to in writing by the parties and in conformity with the then-current Yolo County Procurement Policy approved by the Yolo County Board of Supervisors.

Attachments
Att. A. Third Amendment

Form Review
Inbox Reviewed By Date
Financial Services mqader 08/21/2020 10:52 AM
County Counsel Hope Welton 08/21/2020 11:04 AM
Form Started By: Kimberly Mayfield Started On: 07/22/2020 02:08 PM
Final Approval Date: 08/24/2020

    

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