REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  September  12, 2017
CATEGORY:  Consent - Health and Human Services-11.

SUBJECT:

Renewal agreement with Restpadd, Inc. for the provision of psychiatric inpatient services.

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Dean True, Branch Director, (530) 225-5900

STAFF REPORT APPROVED BY:  Dean True, Director Adult Services

RECOMMENDATION

Approve and authorize the Chairman to sign a retroactive renewal agreement with Restpadd, Inc. in an amount not to exceed $6,000,000 to provide psychiatric inpatient services for the period July 1, 2017 through June 30, 2019.

SUMMARY

N/A

DISCUSSION

The proposed renewal agreement will allow Restpadd, Inc. (Restpadd) to continue to provide inpatient psychiatric services to Shasta County residents and others needing urgent psychiatric services in Shasta County. Restpadd has been providing inpatient psychiatric services to Shasta County residents since April 1, 2013. The benefits of having Restpadd continue to provide these services include being a local facility, allowing clients to receive psychiatric inpatient services closer to their support systems, including family and friends, as well as reducing associated transportation costs for out-of-county placements. Additionally, the agreement authorizes the Health and Human Services Agency (HHSA) Director, or any HHSA Branch Director or Deputy Branch Director designated by the HHSA Director, to approve minor amendments, including retroactive, and changes in Restpadd’s rates not to exceed ten percent over the original rate during the entire term of the agreement, so long as they do not result in a substantial or functional change to the original intent of this agreement and do not cause an increase to the maximum amount payable under this agreement, provided that the amendment is in substantially the same format as the County’s standard format amendment contained in the Shasta County Contracts Manual (Administrative Policy 6-101). This renewal agreement is retroactive due to the availability of all parties to negotiate and execute the agreement.

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

FINANCING

The maximum compensation payable during the entire term of the agreement is $6,000,000. Restpadd will provide inpatient psychiatric services at a rate of $880 per bed day per client (excluding the date of discharge) from July 1, 2017 through June 30, 2018 and $900 per bed day per client (excluding the date of discharge) from July 1, 2018 through June 30, 2019.  Expenditures related to this agreement are included in the Mental Health (BU 410) Fiscal Year 2017-18 Adopted Budget. Revenue to offset approximately 30 percent of the costs of psychiatric hospitalization is reimbursed from third party payor sources such as Medi-Cal, but the majority of costs for hospitalization are borne by Mental Health Realignment funding. There is no additional General Fund impact from the recommended action