Approve sixth amendment to Agreement No. 23-200 with Psynergy Program, Inc. to add funding in the amount of $191,000 for FY 2024-25 for a new contract maximum of $2,730,030 for the period of July 1, 2023 through June 30, 2026; and update residential rates effective July 1, 2025 for the provision of acute and/or sub-acute psychiatric inpatient services or specialty mental health services. (No general fund impact) (Morales)

Approve sixth amendment to Agreement No. 23-200 with Psynergy Program, Inc. to add funding in the amount of $191,000 for FY 2024-25 for a new contract maximum of $2,730,030 for the period of July 1, 2023 through June 30, 2026; and update residential rates effective July 1, 2025 for the provision of acute and/or sub-acute psychiatric inpatient services or specialty mental health services.

Psynergy Program, Inc. (Psynergy) 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. Services provided by Psynergy help improve each individual’s quality of life, help individuals gain the skills and ability necessary to stay out of locked hospital settings, and move into less restrictive living arrangements in the community.

On or about July 25, 2023, the County and Psynergy entered into Agreement No. 23-200, with an initial term of July 1, 2023 through June 30, 2024, for the provision of acute and/or sub-acute psychiatric inpatient services or specialty mental health services. On or about February 13, 2024, the Parties amended the agreement via the first amendment (Agreement No. 24-65) to add funding in the amount of $132,967 for 2023-24. The additional funding was needed due to the number of clients that had been served and were projected to be served in 2023-24. On or about March 12, 2024, the Parties further amended the agreement via the second amendment (Agreement No. 24-87) to add funding for 2023-24 and extend the term of the Agreement through June 30, 2025; and added funding for 2024-25. This additional funding was needed due to the number of clients that had been served in 2023-24 and projected to be served in 2023-24 and 2024-25.  On or about June 25, 2024, the Parties further amended the agreement via the third amendment (Agreement No. 24-176) to add funding for 2023-24. The additional funding was needed to cover 2023-24 invoices. On or about December 17, 2024, the Parties further amended the agreement via the fourth amendment to update the scope of work, rates and language throughout the Agreement. This was a no-cost change amendment executed under the authority this Board delegated to the Yolo County Procurement Manager. On or about June 3, 2025, the Parties further amended the agreement via the fifth amendment to extend the term of the agreement, increase funding for 2024-25 and add funding for 2025-26. The fifth amendment also added an option extension for 2026-27.

HHSA is requesting approval of this sixth amendment which adds funding for fiscal year 2024-25.  The additional 2024-25 funding is needed due to increased utilization and the increased number of clients that were served in 2024-25. The amendment also includes updates to the residential rates effective July 1, 2025. When DHCS increases their rates, HHSA elects to pass-through these rates to our contracted network providers. 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%). This rate increase is a three and half percent (3.50%) increase from their 2024-25 residential rates, please see Att. A. Sixth Amendment to review the rate tables.

County Counsel has approved this Amendment as to form.
Department of General Services, Procurement Division

On or about May 16, 2022, the then acting Yolo County Procurement Manager or designee approved a single source letter in conformance with the then current Yolo County Procurement Policy. HHSA’s request was reviewed, and it was determined that it was in the best interest of the County to enter into an agreement for these services based on satisfactory service/reasonable prices and to avoid the interruption of County business. Factors considered, included but were not limited to:

Without single source approval the County would lose the ability to place consumers in adult residential board and care homes (ARF) provided by Psynergy within proximity. The County would be limited in its ability to identify and place consumers quickly into facilities offering this appropriate level of care, and in some cases would be unable to meet federally mandated standards regarding the provision of care for consumers.

On or about March 27, 2025, a new single source was approved by the County’s Deputy Director of General Services Department/Procurement Manager to extend the term of this Agreement through June 30, 2027. Again, it was determined that it was in the best interest of the County to enter into an agreement for these services based on satisfactory service/reasonable prices and to avoid the interruption of County business.

Performance Measures:
The Performance Measures were included in the underlying Agreement and are not being revised at this time (See Att. B. Performance Measures).

HHSA confirms Psynergy is performing satisfactorily under this Agreement. During FY 2024-25, Psynergy provided residential treatment services to fifteen (15) County clients with an average length stay of two hundred ninety-six (296) days. One hundred percent (100%) of the clients served are meeting their individual treatment goals during their stay at Adult Residential Facility (ARF) stay. Ninety-three percent (93%) of clients have successfully maintained placement, and ninety-three percent (93%) of clients served did not require a higher level of care.