REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  September  11, 2018
CATEGORY:  Regular - Health and Human Services-5.

SUBJECT:

5150 Resolution and Agreement with Prime Healthcare Services, Inc.

Supervisorial District No. :  All

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

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

RECOMMENDATION

Take the following actions:  (1) Adopt a resolution designating Shasta Regional Medical Center, operated by Prime Healthcare Services – Shasta, LLC as a facility to provide 72-hour treatment and evaluation, 14-day intensive treatment, and 30-day intensive treatment, pursuant to Welfare and Institutions Code section 5000; (2) authorize the Director of the Health and Human Services Agency to send confirmation of negotiated rates to Prime Healthcare Services – Shasta, LLC; and (3) approve and authorize the Chairman to sign an agreement with Prime Healthcare Services – Shasta, LLC in an amount not to exceed $7,500,000 to provide inpatient psychiatric hospitalization services for the period date of signing through June 30, 2021.

SUMMARY

This new resolution and agreement allows Prime Healthcare Services – Shasta, LLC (Prime Healthcare) to provide acute psychiatric inpatient services to Shasta County patients on a fee-for-service basis.

DISCUSSION

The proposed agreement will allow Shasta County to purchase acute psychiatric inpatient services at Prime Healthcare’s location in Redding, for Shasta County patients evaluated and referred by Shasta County clinical staff either directly employed by Shasta County or appropriately designated to act on Shasta County’s behalf. Under the terms of the agreement, clinical staff will evaluate patients to determine if there is a need for acute psychiatric inpatient care, and if acute care is deemed appropriate, coordinate the patient’s transfer and admission to Shasta Regional Medical Center (SRMC). All services provided under the terms of the agreement must be preauthorized by Shasta County, and may be for either voluntary or involuntary placements.

In addition to hospital room and board, the specific services purchased from Prime Healthcare include all medications, psychiatric time, and laboratory work. SRMC will also coordinate with Shasta County clinical staff prior to a patient’s discharge, to ensure an appropriate discharge plan is in effect, including transportation if necessary.

Prime Healthcare bills the patients’ insurance, when applicable, and applies any payments to offset Shasta County costs. The services provided on a fee-for-service basis, means Shasta County is only obligated to pay for beds when a Shasta County resident utilizes the inpatient services at SRMC. Actual costs will be billed based on usage of the facility, up to a maximum of $2,500,000 per fiscal year during the term of the agreement. Additionally, Prime Healthcare bills Medi-Cal for services provided to Medi-Cal beneficiaries. The agreement authorizes the rates noted in the agreement to change, and Prime Healthcare to be paid at the adjusted interim rates up to the agreement’s maximum amount, without amendment to this agreement.

ALTERNATIVES

The Board could choose not to adopt the resolution and should they do so, the approval of the agreement would not be necessary.

OTHER AGENCY INVOLVEMENT

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

FINANCING

Costs for these services are included in the Mental Health’s FY 2018-19 (BU 410) Adopted Budget. Acute psychiatric services are financed through Medi-Cal and other third party payers, with the County match largely provided by a combination of 1991 and 2011 realignment. There is no additional General Fund impact from the recommended action.