Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  23-000793

 

MEETING DATE:

05/07/24

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:  Approval of Contracts for Short Term Residential Therapeutic Programs

 

      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 $12,000,000
FY 2025-26 $12,000,000

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:     State: 50% (Mental Health Services Act/Prop 63), Fees/Other: 50% (Federal Financial Participation Medi-Cal)

County Audit in last 3 years: No

   Levine Act Review Completed: Yes

 

    Prior Board Action:         4/26/2022 #16

 

RECOMMENDED ACTION(S):

 

 

1.

Approve the Master Contract with various providers for the provision of Behavioral Health Services in Short-Term Residential Therapeutic Programs for the term of July 1, 2024, through June 30, 2026, for an aggregate amount not to exceed $24,000,000, renewable for three additional one-year terms.

 

2.

Pursuant to Contract Policy Manual Section 3.4-114, authorize the Health Care Agency Director or designee, to exercise a contingency contract cost increase in an amount not to exceed $1,200,000, which is 10 percent of the contract amount for the first year of the contract, for the entire term of the Contract, 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.

 

3.

Authorize the County Procurement Officer or Deputized designee to execute Master Contract as referenced in the Recommended Actions and individual Contracts with various providers as needed throughout the term of the Master Contract.

 

 

 

 

SUMMARY:

 

Approval of the Master Contract and individual Contracts with various providers for the provision of Behavioral Health Services in Short-Term Residential Therapeutic Programs will provide intensive Specialty Mental Health Services to Wards and Dependents of the Court, ages six to 17, and Non-Minor Dependents, ages 18 to 20, placed in licensed Short-Term Residential Therapeutic Programs in Orange County and in other counties where a Presumptive Transfer waiver has been established.

 

 

 

BACKGROUND INFORMATION:

 

On April 26, 2022, your Honorable Board of Supervisors (Board) approved the current Master Contract for the provision of Behavioral Health Services in Short-Term Residential Therapeutic Programs (STRTP) with various providers. The below additional actions related to the Master Contract were executed pursuant to appropriate authorities. A Request for Proposal for these services was not conducted or required as it is a state-mandated program under Continuum of Care Reform (CCR), enacted by the passage of Assembly Bill 403 in 2015. Statutory requirements direct counties to obtain Program Statements and Plans of Operation from those providers who would like to operate an STRTP. Program Statements and Plans of Operation are submitted to Social Services Agency (SSA) who convenes an interagency group consisting of representation from SSA, Probation, and Health Care Agency (HCA) to review the Program Statements and Plans of Operation to determine if the proposed STRTP will meet the County’s needs. The STRTP Master Contracts for both HCA and SSA will go before the Board concurrently as done in previous years.

 

Table 1: Prior Actions related to the Master Contract:

Board Date

Contract / Amendment

Action

Term

April 26, 2022

Master Agreement

Board Approved Master Agreement

July 1, 2022 – June 30, 2024

N/A

Amendment No. 1

Deputy Purchasing Agent Delegated Authority Administrative Revisions; Added state-mandated performance outcome language (effective December 1, 2023)

July 1, 2022 – June 30, 2024

 

Scope of Services

Behavioral Health Services in STRTPs for Wards and Dependents of the Court and Non-Minor Dependents (NMD) were designed to reform congregate care for youth in California. As of January 1, 2017, CCR established STRTP as a new Community Care Licensure category for residential treatment programs.  To continue providing services to children under the jurisdiction of the Juvenile Court, all facilities previously licensed as group homes were required to transition to this new facility type by December 31, 2018. The California Department of Social Services (CDSS) processes the licenses for an existing group home to become a STRTP or for any new providers applying to become a STRTP.

 

The legislation provides that once provisionally licensed by CDSS, STRTPs have 12 months to obtain the permanent license and two years to become fully accredited. The transition process for STRTPs requires that they secure a mental health contract with the local Mental Health Plan (i.e., Health Care Agency) in order to become a certified Medi-Cal provider and obtain Mental Health Program approval from the Department of Health Care Services (DHCS). This Master Contract allows HCA to respond promptly to STRTPs that are provisionally licensed, allowing each STRTP to fully implement the mandated Behavioral Health Services for the Wards and Dependents of the Court and NMDs placed in STRTPs. SSA provides the residential care and supervision for the youth placed at the STRTPs, whereas HCA provides the Specialty Mental Health Services (SMHS) for these youth. 

 

Since the approval of the Master Agreement, all six current group home providers in Orange County that applied for STRTP licensure have obtained permanent STRTP licenses. All six providers are also contracted with HCA for SMHS, and the total aggregate number of beds is sufficient for the number of youth needing STRTP level of care placements in Orange County. Per DHCS STRTP Interim Regulations, the STRTPs provide intensive SMHS in the day and evening, seven days a week, according to the youth’s individual needs as indicated in the youth’s treatment plan. Intensive SMHS may include Crisis Intervention, Medication Support Services, Individual, Group, and Family Therapy, Intensive Care Coordination/Targeted Case Management, and Intensive Home-Based Services/Individual Rehabilitation.

 

Performance Outcomes

HCA is contracted for 121 beds with six STRTP providers at 18 different facilities throughout Orange County. In FY 2022-23, there were 211 unduplicated clients served in STRTPs. The average length of stay for these youth is 335.52 days (11.00 months), much longer than the intended six-month timeline for the STRTPs. This is indicative of the intensive clinical needs of the youth served in the STRTPs and the need for extended intensive treatment in order to stabilize and transition them to lower levels of care and longer-term family-based placements.  

 

The STRTPs use State-mandated performance outcomes measures, which are currently the Child and Adolescent Needs and Strengths (CANS) and Pediatric Symptom Checklist-35 (PSC), to demonstrate reduction in client symptom distress. The program’s targets and outcomes for FY 2022-23 are provided in the table below.

 

In FY 2022-23, the proportion of youth who required active intervention for various symptoms reduced after receiving services in the STRTPs. Reductions were within the established target ranges for two symptom domains and just outside the established target range by one percent for the remaining two.

 

Table 2: FY 2022-23 Outcomes:

Domain

Target Range

FY 2022 - 23 Rate

Adjustment to Trauma

20-25%

19%

Anger Control

30-35%

32%

Anxiety

20-25%

21%

Suicide Risk

65-70%

71%

 

The data  was determined by utilizing past and current data trends across all STRTPs. At this time, the targets will remain the same for FY 2024-25.

 

HCA now requests that the Board approve the Master Contract and individual contracts with various providers for the provision of Behavioral Health Services in STRTP, as referenced in the Recommended Actions.

 

HCA requests the authority to add new providers or locations without returning to the Board for approval, as referenced in the Recommended Actions. Returning to the Board for approval of new providers may result in a delay that would compromise critical bed availability. The ability to add new, qualified providers is time-sensitive due to the instability and needs of the at-risk population served under the Master Contract. The STRTPs are contracted with the County Child Welfare Agency for residential care and supervision, and per CCR requirements, also contracted with the County Mental Health Plan for SMHS; therefore, HCA will need to contract in a timely manner with new providers who are licensed by CDSS and contracted with SSA in order to ensure the STRTP beds may be promptly utilized to serve this high-risk population. 

 

Pursuant to Contract Policy Manual Section 3.4-114, authorize the HCA Director or designee, to exercise a contingency contract cost increase in an amount not to exceed $1.2 million, which is 10 percent of the contract amount for the first year of the contract, for the entire term of the Contract, 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.

 

Due to the nature of the services, the individual contracts could require the addition of subcontractors. 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 Attachment B regarding subcontracts and Contract Summary Form.

 

The Contractors’ performances have been confirmed as satisfactory. HCA has verified that there are no concerns that must be addressed with respect to Contractors’ ownership/name, litigation status or conflicts with County interests.

 

The Orange County Preference Policy is not applicable to this contract award.

 

HCA has developed a Good Neighbor Policy that is included in Residential Program contracts wherein the contractor provides services to County residents and the services may potentially impact the surrounding neighborhood(s), including but not limited to environment, safety, and congregation. HCA has not received any negative feedback from the community and will continue to work with the contractor(s) and the community to ensure positive community relations.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for this Contract will be included in Budget Control 042 FY 2024-25 Budget and in the budgeting process for future years.

 

The Contract includes provisions allowing HCA to terminate the Contract, 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

 

 

REVIEWING AGENCIES:

 

Social Services Agency

 

ATTACHMENT(S):

 

Attachment A - Master Contract MA-042-24011001 for Behavioral Health Services in Short-Term Residential Therapeutic Programs
Attachment B - Contract Summary Form
Attachment C - Assembly Bill 403
Attachment D - Contract MA-042-24011001 for Behavioral Health Services in Short-Term Residential Therapeutic Programs with Hart Community Homes, Inc.
Attachment E - Contract MA-042-24011001 for Behavioral Health Services in Short-Term Residential Therapeutic Programs with Mary's Shelter dba Mary's Path
Attachment F - Contract MA-042-24011001 for Behavioral Health Services in Short-Term Residential Therapeutic Programs with New Alternatives, Inc.
Attachment G - Contract MA-042-24011001 for Behavioral Health Services in Short-Term Residential Therapeutic Programs with Olive Crest
Attachment H- Contract MA-042-24011001 for Behavioral Health Services in Short-Term Residential Therapeutic Programs with Rite of Passage Adolescent Treatment Centers and Schools, Inc.
Attachment I - Contract MA-042-24011001 for Behavioral Health Services in Short-Term Residential Therapeutic Programs with South Coast Children's Society, Inc.