Approve agreement with Crestwood Behavioral Health Inc. in the amount of $3,000,000 for the period of July 1, 2025 through June 30, 2028 and approve rates for the provision of 24-hour, long-term mental health residential and rehabilitative services for Seriously Mental Ill (SMI) adults. (General fund impact: $653,974) (Morales)

Approve agreement with Crestwood Behavioral Health Inc. in the amount of $3,000,000 for the period of July 1, 2025 through June 30, 2028; and approve rates for the provision of 24-hour, long term mental health residential and rehabilitative services for Seriously Mental Ill (SMI) adults.

Crestwood operates a 24-hour long-term inpatient psychiatric care for adult psychiatric consumers who are conserved by the Public Guardian and who are deemed gravely disabled due to a mental health condition. Many of our most fragile consumers cannot be placed in homes or facilities that offer lower levels of care because they need the clinical and nursing support provided in long-term inpatient psychiatric facilities.
Services under this Agreement shall be provided across various service locations and facilities, including:

HHSA staff requests approval of this agreement to ensure continued access to essential services for a population with limited placement options and significant clinical needs. It supports our commitment to providing the appropriate standard of care and protecting the safety and well-being of our most vulnerable clients. Staff also requests approval of the Medi-Cal Behavioral Health rate increases reflected in this agreement, as the rate increase exceeds 3.04% in FY 2025-26 compared to the rates for these services in FY 2024-25 under the previous agreement with this provider. Per Minute Order 25-35, dated May 20, 2025, the Board approved to allow the HHSA Director to sign amendment(s) for rate increases as long as the increase did not exceed four percent (4%). Please see Att. A. Agreement to review the rate tables.

On April 22, 2025, County’s Deputy Director of GSD/Manager of Procurement/County Purchasing Agent (Purchasing Agent) approved a sole/single source procurement for these services, based on satisfactory service/reasonable prices and to avoid the interruption of County business. Without sole/single source approval for these services, County would be negatively impacted including County’s ability to place consumers in the numerous facilities Crestwood offers throughout the State. Factors considered included but were not limited to: 1. fair pricing based on facility type and 2. no other providers offer the range of facilities and levels of care throughout the State that Crestwood offers.

Performance Measures
Performance Measures associated with this Agreement are included in Att. A. Agreement, Exhibit E. Performance data has yet to be collected or analyzed. Performance data will be tracked and analyzed in accordance with the terms specified in the Agreement. Performance data will be made available to both the board and the public. 

During FY 24/25, Crestwood Behavioral Health, Inc. provided 24-hour residential services to 37 Yolo County clients with 8,858 total bed days. The average length of Yolo County client stay was about 239 days during FY 24/25. 10 out of 37 Yolo clients (27%) of the clients were discharged from the facility to a lower level of care during the last Fiscal Year. None of the Yolo County clients experienced one or fewer acute psychiatric hospital stays during the placement at the facility during last Fiscal Year.