REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  June  20, 2017
CATEGORY:  Consent - Health and Human Services-4.

SUBJECT:

Renewal Agreement with Mental Health Management, Inc. dba Canyon Manor

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Dean True, Adult Services Branch Director, 225-5900

STAFF REPORT APPROVED BY:  Dean True, Adult Services Branch Director

RECOMMENDATION

Approve and authorize the Chairman to sign a renewal agreement with Mental Health Management I, Inc., d.b.a. Canyon Manor in an amount not to exceed $900,000 to provide residential mental health rehabilitation services for the period July 1, 2017 through June 30, 2020.

SUMMARY

The proposed renewal agreement will allow Mental Health Management I, Inc. dba Canyon Manor (Canyon Manor) to continue to provide another residential treatment program option for Shasta County clients with serious mental illness.  Canyon Manor is a mental health rehabilitation center (MHRC) with multiple levels of care for adults with severe and persistent mental illness as an alternative to placement in an acute inpatient care setting or a state hospital.  Through this agreement, Shasta County can appropriately place mental health clients in need of long term intensive residential services at Canyon Manor based upon the specific needs of the client.

DISCUSSION

Canyon Manor allows clients to be placed at a level of care specific to individual needs. Under the terms of this agreement, Canyon Manor provides 24-hour long-term, residential MHRC services to County residents. In addition to residential care, services at Canyon Manor include life skills training, anger management, medication awareness, impulse control, and coordinated discharge planning with County staff. MHRC facilities offer numerous advantages to the individual mental health client and to the County. Placing residents in facilities such as Canyon Manor represents a significant cost savings over placement in a state hospital. Canyon Manor provides treatment focused on developing living skills to assist the client transition from a rigidly supervised setting to a board and care or other less structured community setting. Services are provided in collaboration with Health and Human Services Agency-Adult Services staff. Every attempt is made to keep clients in Shasta County, but sometimes it is necessary to place an individual in an out-of-county facility.

The approximate average annual cost for a patient placed at Canyon Manor is anticipated to be $100,000 versus $282,895 per year in a state hospital. The maximum compensation level of the agreement is based upon the projected usage. Statute requires clients be placed in the least restrictive environment possible, and having access to a lower level of residential placement with these services available provides a reasonable solution to meet statutory requirements for the clients and for the County.

The agreement also allows for minor amendments, including retroactive and prospective rate changes not to exceed 20%, as long as the intent of the agreement and the maximum compensation are not changed.

ALTERNATIVES

The Board could choose not to approve this agreement, defer consideration to a future date, or provide direction to staff to negotiate changes to the agreement.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the agreement as to form. Risk Management has approved the agreement. The recommendation has been reviewed by the County Administrative Office.

FINANCING

The maximum amount payable under the proposed agreement for Canyon Manor is $900,000 during the entire term of the agreement. There is sufficient budget authority in the Mental Health (BU 410) FY 2017-18 Recommended Budget. Canyon Manor is not certified as a Medi-Cal provider, so all costs for the services incurred through this contract are funded entirely through department discretionary revenues. Because the County General Fund contribution to Mental Health is currently set at the maintenance of effort level of $266,778, the majority of cost is borne by Mental Health Realignment. There is no additional County General Fund impact from the recommended action.