COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health Services Agency

DATE:

December 23, 2002

BOARD MEETING DATE:

January 14, 2003

TO:

Honorable Board of Supervisors

FROM:

Margaret Taylor, Director of Health Services

Gale Bataille, Director of Mental Health Services

SUBJECT:

Second Amendment to the Agreement with Telecare Corporation

Recommendation

Adopt a resolution authorizing the President of the Board to execute the second amendment to the agreement with Telecare Corporation.

Background

In January 1999, your Board approved a 5-year agreement with Telecare Corporation to provide inpatient psychiatric treatment services for San Mateo County residents at three locations: Cordilleras Mental Health Center in Redwood City, and Garfield Neuro-Behavioral Center and Gladman Psychiatric Health Facility, both located in Alameda County.

Telecare has operated Cordilleras Center since 1982. The first and second floors of Cordilleras Center provide 49 residential beds for San Mateo County clients. Magnolia and Edgewood Suites on the first floor provide 29 residential beds. Willow Suites on the second floor is a 20-bed residential care unit. The third floor provides 68 beds and is licensed as a Mental Health Rehabilitation Center (MHRC). The MHRC program serves 60 San Mateo County residents and reserves 8 beds for the Veterans Administration and other counties. There are a total of 109 beds at Cordilleras Center dedicated to San Mateo County.

On May 21, 2002, your Board approved the first amendment to the agreement with Telecare. That amendment provided for the operation and refurbishing of Willow Suites, and funded a part-time Medical Director position. It also increased the COLA from 2.74% to 5.89% to cover staff salaries, and funded energy cost increases for FY 2001-02, as recommended by your Board.

Discussion

The first amendment indicated that a subsequent amendment to the agreement might be required following approval of the FY 2002-03 budget. This second amendment annualizes for FY 2002-03 the FY 2001-02 increase previously approved by your Board. In addition, this amendment increases the bed rate for Gladman Mental Health Rehabilitation Facility from $265 per day to $278.25 per day, based on the negotiated rate with the host county, which is Alameda. Gladman bed utilization was reduced from 6 beds to 3 beds in May 2000. Garfield Neuro-Behavioral center is not providing services during FY 2002-03.

County Counsel and Risk Management have both reviewed and approved the agreement.

Vision Alignment

This agreement keeps the commitment to Ensure Basic Health and Safety for All and goal number 8: Help vulnerable people-the aged, disabled, mentally ill, at risk youth, and others- achieve a better quality of life. The agreement contributes to this commitment and goal by providing rehabilitation services to seriously mentally ill San Mateo County residents.

Fiscal Impact

The term of this agreement remains July 1, 1998 through June 30, 2003.

This amendment increases the agreement payment maximums for Cordilleras by $286,422 and Gladman by $14,353, respectively, for a total increase of $300,775 for FY 2002-03. The increase will be covered in the current agreement maximum through decreased Garfield bed usage and other unused resources. There is no net increase in the agreement maximum, which remains at $33,011,869.

For FY 2002-03 the agreement maximum is $5,833,025. SSI collections will provide $309,982 and the net County cost is $932,863 for the maintenance of effort for realignment. The balance of $4,590,180 is funded by realignment revenue. These expenditures and revenues are included in the approved FY 2002-03 Mental Health Services budget.