Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  23-000670

 

MEETING DATE:

05/21/24

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Health Care Agency   (Approved)

Department contact person(s):

Annette Mugrditchian (714) 834-5026 

 

 

Veronica Kelley (714) 834-7024

 

 

Subject:  Contracts for Adult Intensive Treatment Services

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost:   N/A

Annual Cost: FY 2024-25 $35,947,219
FY 2025-26 $32,796,665

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:     State: 100% (Mental Health Realignment, Managed Care Realignment, and Tobacco Settlement Revenue)

County Audit in last 3 years: No

   Levine Act Review Completed: Yes

 

    Prior Board Action:         9/27/2022 #31, 5/24/2022 #42, 5/11/2021 #14, 5/21/2019 #44

 

RECOMMENDED ACTION(S):

 

 

1.

Approve the Master Contract and individual contracts with various providers for provision of Adult Long Term Care Institutions for Mental Disease Services, for the term of July 1, 2024, through June 30, 2026, for a total aggregate amount not to exceed $37,597,190, renewable for three additional one-year terms.

 

2.

Approve the Master Contract and individual contracts with various providers for provision of Adult Mental Health Skilled Nursing Facility with Special Treatment Program, for the term of July 1, 2024, through June 30, 2026, for a total aggregate amount not to exceed $23,083,330, renewable for three additional one-year terms.

 

3.

Approve the Master Contract and individual contracts with various providers for provision of Intensive Skilled Nursing Facility Services with Psychiatric Services, for the term of July 1, 2024, through June 30, 2026, for a total aggregate amount not to exceed $2,672,895, renewable for three additional one-year terms.

 

4.

Approve the selection of and Contract with Life Generations Healthcare LLC for provision of Adult Mental Health Intensive Residential Services, for the term of July 1, 2024, through June 30, 2026, for a total amount not to exceed $900,000, renewable for three additional one-year terms.

 

5.

Pursuant to Contract Policy Manual Section 3.4-114, authorize the County Procurement Officer, or Deputized designee, to exercise a contingency contract cost increase in an amount not to exceed $1,844,308.50, 10 percent of the contract amount for the first year of the Master Contract with various providers for provision of Adult Long Term Care Institution for Mental Disease Services; $1,124,127, 10 percent of the contract amount for the first year of the Master Contract with various providers for provision of Adult Mental Health Skilled Nursing Facility with Special Treatment Program;  10 percent of the contract amount for the first year of the Master Contract with various providers for provision of Intensive Skilled Nursing Facility Services with Psychiatric Services; and 10 percent of the contract amount for the first year of the Contract with Life Generations Healthcare LLC for Adult Mental Health Intensive Residential Services; for the entire term of the Master Contracts and Contract, including renewals, and within the scope of work set forth in the contracts. The use of these contingency contract cost increases are subject to approval requirements established by the County Procurement Officer.

 

6.

Approve Amendment No. 3 to extend the Master Contract with various providers for the provision of Adult Mental Health Psychiatric Skilled Nursing Facility Services, for the term of July 1, 2024, through December 31, 2024, for an aggregate amount not to exceed $4,380,000, for a revised cumulative aggregate total amount not to exceed $72,102,469.

 

7.

Approve Amendment No. 3 to extend the Contract with ASC Treatment Group DBA Anne Sippi Clinic Treatment Group for the provision of Adult Mental Health Intensive Residential Services, for the term of July 1, 2024, through September 30, 2024, for an amount not to exceed $110,469, for a revised cumulative total amount not to exceed $2,131,704.

 

8.

Authorize the County Procurement Officer or Deputized designee to execute the Individual Contracts under the Master Contracts with qualified providers for Adult Long Term Care Institutions for Mental Disease Services, Adult Mental Health Skilled Nursing Facility with Special Treatment Program, and Intensive Skilled Nursing Facility Services with Psychiatric Services; to execute the Contract with Life Generations Healthcare LLC for provision of Adult Mental Health Intensive Residential Services; to execute Amendment No. 3 to the Master Contract with various providers for the provision of Adult Mental Health Psychiatric Skilled Nursing Facility Services; to execute Amendment No. 3 to the Contract with ASC Treatment Group DBA Anne Sippi Clinic Treatment Group for Adult Mental Health Intensive Residential Services; and to execute the Individual Contracts with various providers as needed throughout the term of the Master Contracts, as referenced in the Recommended Actions above.

 

 

 

 

SUMMARY:

 

Approval of the Master Contracts for provision of Adult Long Term Care Institutions for Mental Disease Services, Adult Mental Health Skilled Nursing Facility with Special Treatment Program, and Intensive Skilled Nursing Facility Services with Psychiatric Services, the Contract for Adult Mental Health Intensive Residential Services with Life Generations Healthcare LLC, and Amendment No. 3 to the Master Contract for provision of Adult Mental Health Psychiatric Skilled Nursing Facility Services and Amendment No. 3 to Contract for Adult Mental Health Intensive Residential Services with ASC Treatment Group DBA Anne Sippi Clinic Treatment Group will provide adult intensive treatment services to adult residents of Orange County living with a serious mental illness.

 

 

 

BACKGROUND INFORMATION:

 

Your Honorable Board of Supervisors (Board) previously approved the Contracts for Adult Mental Health Psychiatric Skilled Nursing Facility Services, Adult Mental Health Skilled Nursing Facility with Special Treatment Program, and Adult Mental Health Intensive Residential Services. The current contracts for Adult Mental Health Psychiatric Skilled Nursing Facility Services, Adult Mental Health Skilled Nursing Facility with Special Treatment Program, and Adult Mental Health Intensive Residential Services expire on June 30, 2024. The County of Orange Preference Policy does not apply to these contracts. All related prior actions are included in the table below:

 

Board Date

Contract/Amendment

Action

Term

Adult Mental Health Psychiatric Skilled Nursing Facility Services

May 21, 2019

Master Contract

Board approved master contract with various providers for Adult Mental Health Skilled Nursing Facility Services

July 1, 2019 - June 30, 2022

May 24, 2022

Amendment No. 1

Board approved master contract amendment with various providers for two-year renewal

July 1, 2022 - June 30, 2024

N/A

Amendment No. 2

DPA Delegated Authority contract amendment with various providers for administrative revisions and contingency contract increase to increase rates and amount not to exceed

April 10, 2024 - June 30, 2024

Adult Mental Health Skilled Nursing Facility with Special Treatment Program

May 11, 2021

Contract

Board approved contract with Extended Care

July 1, 2021 - June 30, 2024

September 27, 2022

Contract

Board approved contract with Oceanside Harbor

October 1, 2022 - June 30, 2024

N/A

Amendment No. 1

DPA Delegated Authority contract amendment with Extended Care for budget and staffing revisions due to ownership change

October 1, 2022 - June 30, 2024

Adult Mental Health Intensive Residential Services

May 21, 2019

Contract

Board approved contract

July 1, 2019 - June 30, 2022

May 24, 2022

Amendment No. 1

Board approved contract amendment for a two-year renewal

July 1, 2022 - June 30, 2024

N/A

Amendment No. 2

DPA Delegated Authority Contract Amendment for administrative modifications to the scope of work

July 1, 2022 - June 30, 2024

 

Request for Proposal (RFP)

On November 21, 2023, the Health Care Agency (HCA) released a Request for Proposal (RFP) in the County’s online bidding system to solicit proposals from qualified providers to provide various levels of care of Adult Intensive Treatment Services. The RFP included four levels of care: Adult Long-Term Care (LTC) Institutions for Mental Disease (IMD) Services, Adult Mental Health Skilled Nursing Facility with Special Treatment Program (SNF/STP) Services, Intensive Skilled Nursing Facility (SNF) Services with Psychiatric Services, and Adult Mental Health Intensive Residential Services. There were nine total responses received by the due date of December 26, 2023; two responses for Adult LTC IMD, four responses for SNF/STP Services, two for Intensive SNF with Psychiatric Services, and one for Intensive Residential Services.

 

The following table shows the responsive proposals HCA received for each service:

Service

Proponent

Adult LTC IMD Services

Telecare Corporation

Riverside Sanitarium, LLC

Adult Mental Health SNF/STP Services

Oceanside Harbor Holdings, LLC

GHC of Newport LLC dba Newport Nursing & Rehabilitation Center, LLC

Extended Care Hospital of Westminster

W D W Joint Venture dba Downey Community Health Center

Intensive SNF with Psychiatric Services

Vista Woods Health Associates, LLC dba Vista Knoll Specialized Care (Vista Knoll)

2210 Santa Ana OPCA, LLC dba Advanced Rehab Center of Tustin (Advanced Rehab)

Adult Mental Health Intensive Residential Services

Life Generations Healthcare, LLC

 

Proposal Evaluation Process

HCA received one proposal for Adult Mental Health Intensive Residential Services from Life Generations Healthcare, LLC in Upland, CA, which was reviewed by County staff and deemed qualified. Although the RFP was shared with all County Online bidding system registered users, few are able to meet the regulatory requirements dictated by Title 9 and Title 22, to be able to provide the solicited highly specialized services. A standard evaluation panel of three members, two non-County and one County individual, were recruited to evaluate proposals for services that received multiple proposals.

 

Evaluation panel members independently rated the proposals using the following criteria and possible maximum points:

Evaluation Criteria

Maximum Points

Minimum Submission Requirements Review

Pass/Fail

Provider Experience & Qualifications

20

Services

20

Performance Objectives

10

Staffing

10

Facility

20

Budget

10

Interview

10

Total Maximum Points

100 points

 

Service

Proponent

City/State

Average Score

Adult LTC IMD Services

Telecare Corporation

Long Beach, CA

80.72

Adult LTC IMD Services

Riverside Sanitarium, LLC

Riverside, CA

75.88

SNF/STP Services

Oceanside Harbor Holdings, LLC

Anaheim, CA

70.57

SNF/STP Services

GHC of Newport, LLC, dba Newport Nursing & Rehabilitation Center

Newport Beach, CA

70.39

SNF/STP Services

Extended Care Hospital of Westminster

Westminster, CA

69.34

SNF/STP Services

W D W Joint Venture dba Downey Community Health Center

Downey, CA

69.14

Intensive SNF with Psychiatric Services

Vista Knoll

Vista, CA

63.69

Intensive SNF with Psychiatric Services

Advanced Rehab

Santa Ana, CA

55.86

*The evaluation panel recommended award of contracts to those in bold.

 

Negotiations were unsuccessful with Telecare Corporation due to their bed day rate submitted and the overall amount of available funding. No protests were received from the other RFP respondents.

 

HCA staff have conducted due diligence on the Contractors. Reference checks were satisfactory and completed with the following by contract provider:

Services

Proponent

Reference Checks

Adult LTC IMD Services

Riverside Sanitarium, LLC

Healthcare Services Group, VA Loma Linda Healthcare System, and Imperial County

SNF/STP

Oceanside Harbor Holdings, LLC

Amir Aminimanizani, PharmD, MS, Yousef Ireifej, M.D., Pathway Medical Group, Joe Cecil, LHNA, Links Healthcare

SNF/STP

GHC of Newport LLC dba Newport Nursing & Rehabilitation Center

Merced County, Behavioral Health, County of Sacramento, and Tulare County

SNF/STP

Extended Care Hospital of Westminster

Chun Kee Ryu, M.D., Anant Desai P.T., Ed, and Mariela Oblepias, RN

SNF/STP

W D W Joint Venture dba Downey Community Health Center

Elizabeth Zarate-Rowell, M.D., Kregg Kjar, CTRS, Activity Consultant and Educator, and Dr. David Melarkey, PsyD

Intensive SNF with Psychiatric Services

Vista Knoll

Imperial County Behavioral Health Services, Riverside University Health System Behavioral Health, and San Diego County

Intensive SNF with Psychiatric Services

Advanced Rehab

Foothill Hospital; Cedars Family Medicine, Christopher Salem, D.O.; and MedCare Transport

Intensive Residential Services

Life Generations Healthcare, LLC

Riverside University Health System Behavioral Health, Merced County Behavioral Health, and Tulare County

 

Each Contractor’s performance has been confirmed as satisfactory. HCA has verified there are no concerns that must be addressed regarding each Contractor’s ownership/name, litigation status, or conflicts with County interests.

 

HCA is requesting a two-year initial term, with three one-year renewal options for each of these contracts, as it continues to assess the pending impact of available funding. These contracts contain language that the contract may be terminated if funds are not available, however the option to renew allows HCA to continue services without issuing a new solicitation.

 

Scope of Service

The LTC continuum of treatments known as Adult Intensive Treatment Services is comprised of four tiered levels of care. The tiered levels are as follows from highest to lowest: Adult Long-Term Care (LTC) Institutions for Mental Disease (IMD) Services, Adult Mental Health Skilled Nursing Facility with Special Treatment Program (SNF/STP), Intensive Skilled Nursing Facility (SNF) Services with Psychiatric Services, and Adult Mental Health Intensive Residential Services.

 

Adult LTC IMD Services

IMDs are the highest level of care within the LTC continuum of treatment. The target population for IMDs are adults living with a serious mental illness, who may also experience co-occurring medical and/or substance use conditions. The goal of IMDs is increase client daily functioning skills and prepare clients for transition to less restrictive levels of care and support. IMD are licensed as either SNF/STPs or Mental Health Rehabilitation Centers (MHRC) and are to comply with California Code of Regulations (CCR) Title 22 if licensed as a SNF/STP IMD and CCR Title 9 if licensed as an MHRC IMD. Services are provided in locked facilities that operate 24 hours per day, seven days per week, and provide recovery-based mental health services including medication management and a minimum of 27 hours per week of structured therapeutic group activities.

 

Adult Mental Health SNF/STP Services

SNF/STP are Medi-Cal certified programs that provide mental health special rehabilitation services to behavioral health clients who are transitioning from acute psychiatric inpatient facilities or stepping down from an IMD. The primary goal of these services is to increase client daily functioning skills and prepare clients for transition to community-based services including independent living services. Services are to comply with CCR Title 22 and are provided in locked facilities operating 24 hours a day, seven days a week.

 

Intensive SNF Services with Psychiatric Services

Intensive SNFs with Psychiatric Services programs provide skilled nursing and supportive care to behavioral health clients whose primary need is for medical skilled nursing care, while also accessing intensive psychiatric care to manage serious mental health symptoms. The primary goal of these services is to treat the primary medical condition and return the client to their primary behavioral health treatment placement, such as an IMD or SNF/STP.

 

Intensive Residential Services

Intensive Residential Services are unlocked licensed Board and Care Facilities. The overall goal of this program is to increase the functional levels of clients, enabling them to fully engage in their recovery plan and transition to less restrictive levels of interventions, including independent living. These enhanced Board and Care programs provide step-down treatment for clients transitioning out of LTC SNF/STPs, MHRCs, and/or IMDs. The treatment program provides a specialized intensive residential program that operates 24 hours a day, seven days per week with an emphasis on structured client-centered rehabilitative and treatment services.

 

Amendment No. 3 to the Master Contract for Adult Mental Health Psychiatric SNF Services

The RFP released on November 21, 2023, and did not receive sufficient proposals to meet the 175 bed capacity needed for the IMD level of care. As such, extension of contracts with existing providers under the Master Contract for the provision of Adult Mental Health Psychiatric SNF Services, for the term of July 1, 2024, through December 31, 2024, in an amount not to exceed $4,380,000, is necessary to allow for the continuation of services to existing clients, as well as time to release another RFP to solicit proposals from qualified providers to provide this level of care. HCA is seeking a six-month extension of contracts with Sylmar Health & Rehabilitation Center, Inc. KF Community Care, LLC, and Landmark Medical Services, Inc.

 

Amendment No. 3 to the Master Contract for Intensive Residential Services

The proposed Amendment No. 3 to the Contract with ASC Treatment Group DBA Anne Sippi Clinic Treatment Group for Adult Mental Health Intensive Residential Services for the Board’s consideration will allow for a smooth transition of clients to Life Generations Healthcare LLC. The Amendment will be for a three-month extension of services for the term of July 1, 2024, through September 30, 2024, for an amount not to exceed $110,469.

 

Performance Outcomes

Current contracts for the LTC continuum track and report the number of persons served and average length of stay (LOS). In addition to continuing to track these activities, new performance outcomes presented in the table below have been developed to better evaluate the effectiveness of each LTC program. Outcomes are listed in Exhibit A of each Contract.

 

Level of Care

New Outcome Measures

IMD

90% of clients discharge to a lower level of care

90% of clients assessment & treatment plan completed within 30 days of admission

90% of clients will participate in group/individual therapy & social activities

90% of clients will increase well-being

SNF/STP

90% of clients will discharge to a lower level of care

90% of clients assessment & treatment plan completed within 30 days of admission

90% of clients will participate in group/individual therapy and social activities

90% of clients will increase well-being

SNF with Psychiatric Services

80% of clients will discharge to a lower level of care

90% of clients assessment & treatment plan within 14 days of admission

100% discharged to the community will have a behavioral health appointment within 3 days

Intensive Residential

80% of clients will not have a psych hospitalization

50% of clients will discharge to a lower level of care

Increase independent level of functioning

 

HCA requests that the Board approve the Master Contracts for provision of Adult Long Term Care Institutions for Mental Disease Services, Adult Mental Health Skilled Nursing Facility with Special Treatment Program, and Intensive Skilled Nursing Facility Services with Psychiatric Services, the Contract for Adult Mental Health Intensive Residential Services, and Amendment No. 3 to the Master Contract for provision of Adult Mental Health Skilled Nursing Facility Services and Amendment No. 3 to Contract for Adult Mental Health Intensive Residential Services with ASC Treatment Group DBA Anne Sippi Clinic Treatment Group, as referenced in the Recommended Actions.

 

The individual contracts, due to the nature of the services, could require the addition of subcontractors. In order to add subcontractor(s) to the contract(s), the provider/contractor must seek express consent from HCA. Should the addition of a subcontractor affect the scope of work and/or contract amount, HCA will bring the item back to the Board for approval. See Attachments Q regarding subcontracts and Contract Summary Forms.

 

Pursuant to Contract Policy Manual Section 3.4-114, authorize the Health Care Agency Director or designee to exercise a contingency contract cost increase not to exceed 10 percent of the contract amount for the first year of the Master Contracts for Adult LTC IMD Services, Adult Mental Health SNF/STP, and Intensive Skilled Nursing Facility with Psychiatric Service, and the Contract for Adult Mental Health Intensive Residential Services for the entire term of the contracts including renewals, and within the scope of work set forth in the contract. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer. The contingency provision would be exercised in the event there is an increase in the projected services needed for the clients being served.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for these Contracts, and Master Contracts with various individual contracts will be included HCA in Budget Control 042 FY 2024-25 Budget and will be included in the budgeting process for future years.

 

The proposed Contracts include provisions allowing HCA to terminate the Contracts, reduce the level of services, and/or renegotiate the levels of services provided, as necessary. This includes a notice that allows HCA adequate time to transition or terminate services to clients, if necessary.

 

 

 

STAFFING IMPACT:

 

N/A

 

 

 

ATTACHMENT(S):

 

Attachment A –  Master Contract MA 042-24011029 for Provision of Adult Long Term Care Institutions for Mental Disease Services
Attachment B – Contract MA 042-24011029 for Provision of Adult Long Term Care Institutions for Mental Disease Services with Riverside Sanitarium, LLC
Attachment C – Master Contract MA 042-24011223 for Provision of Adult Mental Health Skilled Nursing Facility with Special Treatment Program
Attachment D – Contract MA 042-24011223 for Provision of Adult Mental Health Skilled Nursing Facility with Special Treatment Program with W D W Joint Venture dba Downey Community Health Center
Attachment E – Contract MA 042-24011223 for Provision of Adult Mental Health Skilled Nursing Facility with Special Treatment Program with GHC of Newport LLC dba Newport Nursing & Rehabilitation Center
Attachment F – Contract MA 042-24011223 for Provision of Adult Mental Health Skilled Nursing Facility with Special Treatment Program with Extended Care Hospital of Westminster
Attachment G – Contract MA 042-24011223 for Provision of Adult Mental Health Skilled Nursing Facility with Special Treatment Program with Oceanside Harbor Holdings LLC
Attachment H – Master Contract MA 042-24011218 for Provision of Intensive Skilled Nursing Facility Services with Psychiatric Services
Attachment I – Contract MA 042-24011218 for Provision of Intensive Skilled Nursing Facility Services with Psychiatric Services with Vista Woods Health Associates, LLC dba Vista Knoll Specialized Care
Attachment J – Contract MA 042-24011218 for Provision of Intensive Skilled Nursing Facility Services with Psychiatric Services with 2210 Santa Ana OPCA, LLC dba Advanced Rehab Center of Tustin
Attachment K  – Contract MA 042-24011228 for Provision of Adult Mental Health Intensive Residential Services with Life Generations Healthcare LLC
Attachment L – Amendment No. 3 to Master Contract MA 042-20010215 for Provision of Adult Mental Health Psychiatric Skilled Nursing Facility Services
Attachment M – Amendment No. 3 to Contract MA 042-20010215 for Provision of Adult Mental Health Psychiatric Skilled Nursing Facility Services with Sylmar Health & Rehabilitation Centers, Inc.
Attachment N – Amendment No. 3 to Contract MA 042-20010215 for Provision of Adult Mental Health Psychiatric Skilled Nursing Facility Services with KF Community Care, LLC
Attachment O – Amendment No. 3 to Contract MA 042-20010215 for Provision of Adult Mental Health Psychiatric Skilled Nursing Facility Services with Landmark Medical Services, Inc.
Attachment P – Amendment No. 3 to Contract MA 042-20010216 for Provision of Adult Mental Health Intensive Residential Services with ASC Treatment Group DBA Anne Sippi Clinic Treatment Group
Attachment Q –  Contract Summary Forms
Attachment R – Individual Scoring Sheets
Attachment S – Regulatory Reference – California Code of Regulations Title 22
Attachment T – Regulatory Reference – California Code of Regulations Title 9
Attachment U – Redline Version of Attachment L
Attachment V – Redline Version of Attachment M
Attachment W – Redline Version of Attachment N
Attachment X – Redline Version of Attachment O
Attachment Y – Redline Version of Attachment P