Approve and authorize the Chair to execute a renewal agreement with Psynergy Programs, Inc. for the provision of providing acute and/or sub-acute psychiatric inpatient services or specialty mental health services to eligible Yolo County Beneficiaries in compliance with the new California Advancing and Innovating Medi-Cal (CalAIM) initiative in an amount not-to-exceed $500,000 for the period of July 1, 2023 through June 30, 2024. (No general fund impact) (Sullivan)

Approve and authorize the Chair to execute a renewal agreement with Psynergy Programs, Inc. for the provision of providing acute and/or sub-acute psychiatric inpatient services or specialty mental health services to eligible Yolo County Beneficiaries in compliance with the new California Advancing and Innovating Medi-Cal (CalAIM) initiative in an amount not-to-exceed $500,000 for the period of July 1, 2023 through June 30, 2024.

On May 24, 2022, the County and Psynergy Programs, Inc. (Psynergy Programs) entered into Agreement No. 22-105, which provided an initial term of July 1, 2022 through June 30, 2025, with two optional extensions for fiscal years (FY) 2025-26 ($500,000) and 2026-27 ($500,000) for the provision to operate Adult Residential Facilities (ARF), Residential Care Facilities for the Elderly (RCFE) and outpatient mental health clinics in proximity to Yolo County. Psynergy Programs provides reliable adult residential home care in combination with intensive outpatient mental health services which assist individuals with mental illness to avoid the unnecessary expense and emotional trauma often associated with incarceration and hospitalization. The goals of Psynergy Programs’ services are to improve each individual’s quality of life, to help individuals gain the skills and ability necessary to stay out of locked hospital settings, and to move into a less restrictive living arrangement in the community.

California Advancing and Innovating Medi-Cal (CalAIM) Initiative
In January 2022, California Department of Health Care Services (DHCS) rolled out the CalAIM initiative that aims to provide broad delivery system program and payment reform across the Medi-Cal system. The goal is transformation of the Medi-Cal delivery system, moving it towards a population health approach that prioritizes prevention and whole person care. Focus shifts from compliance to quality and performance metrics. Specialty Mental Health Services (SMHS) requirements and policies pursuant to the CalAIM initiative were updated, and as a result of these updates, the County is required to revise the terms and conditions in the provider agreements for these services.  In preparation for this system wide change, the County has been working closely with CalMHSA who has been providing the County and other SMHS Medi-Cal counties with technical assistance around the CalAIM initiative. The County has received new boilerplate templates from CalMHSA for both DMC/SUD treatment services and SMHS Medi-Cal services that include updated programmatic regulatory requirements and updated billing/claiming requirements. County is working on finalizing a new Yolo County SMHS Medi-Cal boilerplate that is in compliance with these changes, a draft of which is attached hereto as Att. A. Draft Yolo County SMHS boilerplate.

The renewal agreement requested in this staff report will be drafted and executed on the finalized Yolo County SMHS boilerplate. County Counsel and the Procurement Division are participating in the review and finalization of the Yolo County SMHS boilerplate. However, due to the timeliness in which the County has been receiving information from DHCS, especially regarding rates, final boilerplate language is still pending. Approval of this request herein will enable HHSA to expedite processing and approval of the renewal agreement to minimize any lapse in services once HHSA has all the information from DHCS and has negotiated final rates with providers.

While Agreement 22-105 currently provides a term through FY 2023-24 ($500,000), due to the significant regulatory and claiming changes driven by the CalAIM initiative, the current agreement will be terminated effective June 30, 2023, and will be replaced by a renewal agreement. HHSA now requests BOS approval of a one-year renewal agreement with Psynergy Programs for the provision of ARF services, RCFE services, and outpatient mental health services in an amount not-to-exceed $500,000 for the period of July 1, 2023 through June 30, 2024; and delegated signing authority to the Yolo County Board Chair to assist with expediting execution of the renewal agreement. Based on guidance from County Counsel and the Procurement Division, the optional extensions for FY’s 2025-26 ($500,000) and 2026-27 ($500,000) will not be included in this replacement agreement. County Counsel and the Procurement Division are working on updating the County long form contract boilerplate that will be forthcoming sometime in FY2023-24. County Counsel and the Procurement Division would like any extensions beyond June 30, 2024 to be drafted on the updated County long form contract boilerplate.

Performance Measures included in this Agreement are as follows:
Performance measures were included in Agreement No. 22-105 See Att. B. Performance Measures. These performance measures or similar performance measures will also be included in the renewal agreement.

County Counsel - Review and approval of the Yolo County SMHS boilerplate and resulting renewal agreements as to form
Department of General Services, Procurement Division
CalMHSA - technical assistance with CalAIM Initiative

On or about May 16, 2022, the then acting Yolo County Procurement Manager approved a sole source letter in conformance with the then current Yolo County Procurement Policy.