TO: Board of Supervisors
FROM: Jennifer Yasumoto, Director of Health and Human Services Agency
REPORT BY: Gaby Angeles, Staff Services Analyst II
SUBJECT: Amendment No. 4 to Agreement No. 210314B with Crestwood Behavioral Health, Inc.
RECOMMENDATION
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Approve and authorize Amendment No. 4 to Agreement No. 210314B with Crestwood Behavioral Health, Inc., to increase the contract maximum by $943,751 for a new contract maximum of $4,596,606 for Fiscal Year 2026-2027, and each subsequent renewal, to support additional operational costs associated with expanded bed count and ongoing program costs required to meet an increased demand for crisis services. (Fiscal Impact: $943,751 Additional Expense; Health and Human Services Agency Fund; Budgeted; Mandatory)
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BACKGROUND
Crestwood Behavioral Health, Inc. currently operates the County’s Crisis Stabilization Unit (CSU). The unit provides immediate access to crisis intervention, emergency psychiatric evaluation and medication services for children, adults, and older adults in a mental health crisis, and other specialty mental health services. Crestwood also offers community-based Crisis Stabilization Services (CSS) over the telephone or through face-to-face contact 24 hours a day, 7 days per week, to address the emergency psychiatric needs of children, adolescents, adults, older adults and families in a mental health crisis.
This amendment increases the contract maximum to support the expansion of treatment services provided at the CSU. The physical plant expansion is supported by the Behavioral Health Continuum Infrastructure Program (BHCIP) grant funding, which HHSA applied for and was awarded in 2023. The grant funds are being used to finance construction costs associated with expanding the facility and increasing crisis capacity from 8 beds to 12. Construction related to this expansion is scheduled for completion in the first half of Fiscal Year 2026-2027, therefore HHSA does not anticipate any increase in costs or utilization under this agreement until that time.
This increase in funding is necessary to support the additional operational capacity associated with the expanded bed count, including staffing, service delivery, and ongoing program costs required to meet increased demand for crisis services and ensure continued compliance with Medi-Cal Specialty Mental Health Services requirements.
Requested Action:
1. Approve and authorize Amendment No. 4 to Agreement No. 210314B with Crestwood Behavioral Health, Inc., increasing the contract maximum by $943,751 for a new contract maximum of $4,596,606 for Fiscal Year 2026-2027, and each subsequent renewal.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Health and Human Services Agency, Behavioral Health Division |
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Is it Mandatory or Discretionary? |
Mandatory |
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Is the general fund affected? |
No |
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Future fiscal impact: |
This agreement contains a provision for automatic annual renewal. Appropriations have been included in the requested 2026-2027 budget and future fiscal years will be budgeted accordingly. |
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Consequences if not approved: |
If this amendment is not approved, the County will be unable to provide Crestwood with additional funds to support CSU services necessary to provide mandated inpatient psychiatric hospitalization services to children, adolescents, adults, older adults and families in mental health crisis. |
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Additional Information |
Strategic Initiative: Compassion & Access |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.