COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health Department

DATE:

September 14, 2007

BOARD MEETING DATE:

September 25, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Charlene A. Silva, Director of Health

Gale Bataille, Interim Director, Behavioral Health & Recovery Services

SUBJECT:

Agreement with Mills-Peninsula Hospitals

RECOMMENDATION:

Adopt a Resolution:

1)

Authorizing the President of the Board to execute an agreement with Mills-Peninsula Hospitals for the period July 1, 2007 through June 30, 2008 for a maximum obligation, collectively with all other hospitals that have contracted with Mental Health Services for the provision of psychiatric inpatient hospital services for San Mateo County youth and adults, of $882,411; and

2)

Authorizing the Director of Health or the Director's designee to execute contract amendments which modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate) and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goal 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 psychiatric inpatient hospital services for San Mateo County youth and adults.

PERFORMANCE MEASURE:

Measure

FY 2006-07 Actual

FY 2007-08 Projected

Maximum percentage of clients who need to be re-admitted within 30 days of a completed episode of care

7%

10%

BACKGROUND:

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). Since 1995 Mills-Peninsula Hospitals has contracted with the County to provide psychiatric inpatient hospital services. These services are used to accommodate emergency admissions in the northern part of the County and when the San Mateo Medical Center is full. For FY 2006-07 the Mental Health Services Division contracted with Mills-Peninsula Hospitals, St. Mary’s Hospital and Medical Center, and John Muir Behavioral Health Center. Under the B-1 administrative memorandum the selection of providers delivering inpatient psychiatric hospital services for Mental Health clients is exempt from the Request for Proposals requirement.

DISCUSSION:

Mental Health Services is renewing agreements with Mills-Peninsula Hospitals and St. Mary’s Hospital and Medical Center. John Muir Behavioral Health Center is currently under a two-year contract and is not due for renewal this year. The Agreement with St. Mary’s Hospital and Medical Center will be presented to your Board separately. Services provided by these facilities comprise the majority of contracted psychiatric inpatient hospital services provided to San Mateo County clients. If Mental Health Services did not contract with these providers, it would still be obligated to pay for the emergency services they provide. In order to improve service capacity, Mental Health Services offers contracts for psychiatric inpatient hospital services to any willing qualified provider.

This Agreement with Mills-Peninsula Hospitals contains rates for psychiatric inpatient hospital services for Medi-Cal-covered adolescents and adults and rates for psychiatric inpatient hospital services for uninsured adolescents and adults. Administrative Day rates, which are set by the State, are also included. This Agreement is structured on the basis of fee-for-service rates. Only services authorized by Mental Health Services will be paid.

The Agreement has been reviewed and approved by Risk Management and County Counsel. The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits. The FY 2006-07 Agreement with Mills-Peninsula Hospitals is currently on the Continuing Resolution.

FISCAL IMPACT:

The term of this Agreement is July 1, 2007 through June 30, 2008. The total maximum amount for the agreements with all three hospitals for FY 2007-08, collectively, is $882,411. There are no separate contract maximums for individual hospitals. Of the maximum amount, $635,336 will be funded with State and Federal Medi-Cal funds, $160,599 will be funded by sales tax through realignment, $17,648 will be funded through the Health Plan of San Mateo, and the remaining $68,828 is the Net County Cost. Funding for these services has been included in the Mental Health Services tentatively Adopted FY 2007-08 Budget.