Inter-Departmental Correspondence


Health Services Agency



November 29, 2004



December 14, 2004



Honorable Board of Supervisors



Charlene A. Silva, Director of Health Services


Gale Bataille, Director of Mental Health Services



Agreement with Mills-Peninsula Hospitals




Adopt a Resolution:



Authorizing the President of the Board to execute an agreement with Mills-Peninsula Hospitals, and



Authorizing the Director of Health Services to execute subsequent amendments and minor modifications not to exceed an aggregate of $25,000 and to make minor changes in the types of services and activities provided under the Agreement.



In March 1995, your Board approved the acceptance of State and federal funds to implement the San Mateo County Mental Health Managed Care Plan (MHP). Mills-Peninsula Hospitals has contracted with the County to provide inpatient mental health services since 1995. These services are used to accommodate emergency admissions in the northern part of the county and when San Mateo Medical Center is full. For FY 2003-04 the Mental Health Services Division contracted with Mills-Peninsula Hospitals, St. Mary’s Hospital and Medical Center and Mt. Diablo Medical Pavilion to provide inpatient services.



The Mental Health Services Division is renewing agreements with Mills-Peninsula Hospitals, St. Mary’s Hospital and Medical Center and Mt. Diablo Medical Pavilion, and is again contracting with Sequoia Hospital and Medical Center. The agreements for Mt. Diablo Medical Pavilion for FY 2004-06 and Sequoia Hospital and Medical Center for FY 2004-05 have already been presented to your Board.


This agreement with Mills-Peninsula Hospitals contains rates for inpatient mental health services for Medi-Cal-covered adolescents and adults and rates for inpatient mental health services for uninsured adolescents and adults for FY 2004-05. Administrative Day rates, which are reimbursed based on the rate set by the state, are also included. This agreement is structured on the basis of fee-for service rates. Only services authorized by San Mateo County Mental Health Services will be paid. The total maximum amount for all four hospitals agreements, collectively, is $882,411. There are no separate contract maximums for individual hospitals.


County Counsel has reviewed and approved the agreement and Risk Management has approved the insurance coverage.


The negotiated rate schedule is below:


Daily Inpatient Medi-Cal Adult Rate

Daily Inpatient Uninsured Adult Rate

Daily Inpatient Medi-Cal Adolescent Rate

Daily Inpatient Uninsured Adolescent Rate

Transitional Services Adult

Transitional Services Adolescent

Administrative Day Rate Adult and Adolescent





$72.00/hr. with a cap of $575.00

$72.00/hr. with a cap of $600.00



Objective and actual performance for FY 2003-04 and the objective for FY 2004-05 are below:


Performance Measure

2003-04 Adult Objective

2003-04 Adult Actual

2003-04 Adolescent Objective

2003-04 Adolescent Actual

2004-05 Adult & Adolescent Objectives

Percent of clients who needed to be re-admitted within 30 days of a completed episode of care

10% or less


10% or less


10% or less


Vision Alignment

This managed care 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. This agreement contributes to this commitment and goal by providing inpatient mental health services for San Mateo County youth and adults.


Fiscal Impact

The agreement is effective July 1, 2004 through June 30, 2005 and carries a 30-day termination clause for both parties. The agreement maximum is $882,411. Of that amount, $635,336 will be funded with state and federal Medi-Cal funds, $160,599 will be funded with realignment funds, $17,648 is funded through the Health Plan of San Mateo, and the remaining $68,828 is the net County cost. Funding for this agreement has been included in the FY 2004-05 approved Mental Health Services budget.