Approve third amendment to Agreement No. 21-139 with Mental Health Management I, Inc., dba Canyon Manor, to reduce funding by $175,000 for 2024-25, extend the contract term through June 30, 2026, add $1,050,000 for 2025-26 for a new total contract amount of $4,775,000 for the period of July 1, 2021 through June 30, 2026, update rates for 2024-25 and 2025-26, and update County email addresses throughout the agreement for mental health rehabilitation center (MHRC) residential treatment services. (No general fund impact) (Morales)

Approve the third amendment to Agreement No. 21-139 with Mental Health Management I, Inc., dba Canyon Manor, to reduce funding by $175,000 for 2024-25, extend the contract term through June 30, 2026, add $1,050,000 for 2025-26 for a new total contract amount of $4,775,000 for the period of July 1, 2021 through June 30, 2026, update rates for 2024-25 and 2025-26, and update County email addresses throughout the agreement for mental health rehabilitation center (MHRC) residential treatment services. 

Mental Health Management I, Inc. dba Canyon Manor provides services to Seriously Mentally Ill (SMI) adults, stepping them down to lower levels of care whenever possible, reducing acute psychiatric admissions and length of stay and Institute for Mental Disease placements. This facility provides goal-directed treatment, reduced lengths of stay, and great collaboration and communication, while also being closer to home for conserved clients.

On or about July 7, 2021, the County and Canyon Manor entered into Agreement No. 21-139 (“the Agreement”) for mental health rehabilitation services for SMI adults. On or about May 24, 2022, the Agreement was amended to add funding in the amount of $1,700,000. On or about May 16, 2023, the Agreement was amended to add rates for FY 2023-24. On or about May 29, 2024, the County exercised its option to extend the Agreement per its terms for 2024-25.

Now HHSA requests approval of this third amendment that will decrease FY 2024-25 funding by $175,000. This reduction will allow for unspent funds to be used for other contracts with increased utilization. The amendment also extends the Agreement through June 30, 2026 and adds funding in an amount of $1,050,000 for FY 2025-26, which will allow for a continuation of services for adults experiencing SMI.

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

On July 7, 2021, the then-acting Yolo County Deputy Director/Manager of Procurement/Purchasing Agent or designee (Purchasing Agent) approved a single source procurement for these services. Canyon Manor operates secure residential care for adult HHSA psychiatric consumers; many of our most fragile SMI consumers cannot be placed in homes or facilities that offer lower levels of care because they need the clinical and nursing support provided in secure residential facilities. When the need for placement in a 24-hour supervised residential psychiatric care facility occurs, it often involves consumers who have a sudden and immediate need for placement, which is difficult to plan for in advance. This challenge is intensified by the limited availability of inpatient psychiatric beds statewide, and ongoing challenges with finding a placement in a short timeframe.  To address these challenges, Yolo County contracts with all available inpatient psychiatric facilities in the surrounding area to ensure that we can provide access to adequate bed space for our consumers as quickly as possible. Canyon Manor is one such provider and offers a wide variety of facilities in multiple locations throughout the state.

The Performance Measures included in the underlying Agreement remain unchanged with this amendment (See Attachment B). HHSA confirms that Mental Health Management I, Inc., doing business as Canyon Manor, has performed satisfactorily under this agreement. Canyon Manor has met the performance standards and other expectations set forth by the County. All clients placed at this facility experienced fewer acute psychiatric hospitalizations during their stay. In FY 2024-25, 50% of the clients were discharged to a lower level of care and 100% of clients placed at the facility experienced fewer acute psychiatric hospitalizations during their placement at this facility.