Inter-Departmental Correspondence

Health Services Agency



March 25, 2004


April 6, 2004



Honorable Board of Supervisors


Margaret Taylor, Director of Health Services

Gale Bataille, Director, Mental Health Services


Rates for Mental Health Services




Adopt a resolution setting rates for Mental Health Services.




Your Board has the authority to approve the rates for the Mental Health Services Division. These rates are used to bill clients and third party insurance companies for mental health services. The Mental Health Services Division is required to maintain rates at least equal to the rates charged to Medi-Cal for each type of service.




We are now recommending rates for your approval for mental health services for FY 2003-04. The rates are the greater of the standard maximum allowable Medi-Cal rate established for each service by the State Department of Mental Health for fiscal year 2003-04, or the projected actual cost of each service. These proposed rates are effective as of July 1, 2003.


Type of Service

Current Approved Rate

Recommended Rate

Day Treatment Intensive

$171.26 per day

$204.14 per day

Day Treatment Rehabilitative

$111.03 per day

$118.94 per day

Adult Crisis Residential

$257.66 per day

$276.02 per day

Adult Transitional Residential

$125.67 per day

$134.63 per day

Crisis Stabilization

$98.11 per day

$110.14 per day

Medication Support

$7.89 per minute

$5.32 per minute

Crisis Intervention

$3.33 per minute

$4.33 per minute

Case Management

$1.75 per minute

$2.33 per minute

Mental Health Services

$2.19 per minute

$2.77 per minute

Therapeutic Behavioral Services


$2.63 per minute


These rates are based on the FY 2002-03 actual costs, augmented for inflation. The analysis required to determine the actual costs was not completed until January of this year.


Vision Alignment


These rates for Mental Health services keep the commitment to Ensure Basic Health and Safety for All, goal number 8: Help vulnerable people - the aged, disabled, mentally ill, at risk youth, and others - achieve a better quality of life, and the commitment to Responsive, Effective, and Collaborative Government, goal number 20: Government decisions are the result of careful consideration of future impact, rather than temporary relief or immediate gain. The approval of these rates contributes to these commitments and goals by establishing rates for mental health services.


Fiscal Impact


The proposed client fee schedule will yield a projected total of about $140,000 in client fees and third party insurance reimbursement. The projected revenues in the 2003-04 Mental Health Services proposed budget reflect these rates.