Inter-Departmental Correspondence
Health System



April 29, 2010


May 25, 2010







Honorable Board of Supervisors



Jean S. Fraser, Chief, Health System


Louise Rogers, Director, Behavioral Health & Recovery Services



Agreement with Mills-Peninsula Hospitals



Adopt a Resolution:

1) Authorizing the President of the Board to execute an Agreement with Mills-Peninsula Hospitals for the period of July 1, 2010 through June 30, 2011, for a maximum obligation of $882,411 in aggregate with all other hospitals that have contracted with Behavioral Health and Recovery Services for the provision of psychiatric inpatient hospital services for San Mateo County youth and adults; and


2) Authorizing the Chief of the Health System or 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.



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 2010-11 Behavioral Health and Recovery Services (BHRS) is contracting with Mills-Peninsula Hospitals and John Muir Behavioral Health Center. Services provided by these facilities comprise the majority of contracted psychiatric inpatient hospital services provided to San Mateo County clients. 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. In order to improve service capacity, BHRS offers contracts for psychiatric inpatient hospital services to any willing qualified provider.



The Agreement with Mills-Peninsula Hospitals is for an aggregate amount for all hospital inpatient services authorized by BHRS. This Agreement contains rates for psychiatric inpatient hospital services for Medi-Cal-covered youth and adults and rates for psychiatric inpatient hospital services for uninsured youth 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 BHRS will be paid. The Agreement with John Muir Behavioral Health Center will be presented to your Board separately.


County Counsel has reviewed and approved this Resolution and Agreement. Risk Management has approved the insurance coverage for this provider. 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.


Subsequent to the final adoption of the State budget it may be necessary to make changes to this contract in order to reflect legislative action. This contract is recommended to your Board at this time in order to provide a continuity of services to the community until final funding levels can be determined. The contract provides that the County may reduce the scope of the contract to reflect any shortfall in funding from State or federal allocations.


The Agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by providing inpatient psychiatric hospital services for youth and adults. BHRS provides a range of services to promote wellness and recovery and to support consumers remaining in the lowest possible level of care. The provision of inpatient services is one established level of care. The services provided through this Agreement contribute to this measure. It is anticipated that no more than 12% of clients who receive psychiatric inpatient hospital services through this Agreement will not be re-admitted within 30 days of discharge.


Performance Measure:


FY 2009-10

    FY 2010-11

Percentage of clients who are re-admitted within 30 days of discharge.





The term of the Agreement is July 1, 2010 through June 30, 2011, and the maximum obligation in aggregate with other contracted hospitals is $882,411. There are no separate contract maximums for individual hospitals. Of the maximum amount, $635,336 will be funded with Federal Financial Participation 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 Net County Cost. Funding for these services has been included in the BHRS FY 2010-11 Recommended Budget.