Consent-Health & Human Services # 22.
Board of Supervisors
Behavioral Health and Veterans Services
- Meeting Date:
- 05/26/2026
- Brief Title
- Sutter Center for Psychiatry and all other Hospital Pass Through rate increases
From:
Monica Morales, Director, Health and Human Services Agency
Staff Contact:
Tony Kildare, Behavioral Health and Veterans Branch Director, Health and Human Services Agency, x2929
Supervisorial District Impact:
Countywide
Subject
Approve a 7.50% increase in the Sutter Center for Psychiatry Hospital rates and delegate authority to the Health and Human Services Agency (HHSA) Director to approve future pass-through rate increases for hospital providers not to exceed 10% per fiscal year. (No general fund impact) (Morales)
Recommended Action
- Approve a 7.50% increase in hospital rates to be passed through to Sutter Center for Psychiatry (please see Att. A. 2025-26 Rate Letter for Sutter Center for Psychiatry); and
- Delegate authority to the HHSA Director to approve future hospital pass-through rate increases for all hospital providers, not to exceed 10% per fiscal year.
Strategic Plan Goal(s)
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Thriving Residents |
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Operational Excellence |
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County Mandated Service |
Reason for Recommended Action/Background
California state law mandates that the County provide psychiatric inpatient hospital services to eligible Medi-Cal and non-Medi-Cal mental health consumers. Woodland Memorial Hospital is the designated and responsible hospital to provide these services to adult Yolo County residents (age 18 or older) who meet California Welfare and Institutions Code criteria and/or who are a danger to themselves or others or are gravely disabled and require acute inpatient psychiatric services.
When no adult bed space is available at Woodland Memorial Hospital, or when a child or adolescent is in need of services, the patient must be treated by another qualified psychiatric hospital facility in the surrounding area. Sutter Center for Psychiatry and other Sacramento County based hospitals, are such facilities and are equipped to provide appropriate services to meet our clients’ needs.
The County is responsible for serving all Yolo Medi-Cal beneficiaries regardless of age. Hospital contractors are not certified to bill Medi-Cal for services provided to Yolo Medi-Cal beneficiaries whose age is between 21 and 64 years of age.
The Department of Health Care Services (DHCS) and the hospital-based County’s Mental Health Plan (MHP) negotiate rates each fiscal year. HHSA has no discretionary authority over hospital rate increases negotiated between DHCS and County’s MHP when the hospital facility is located outside of Yolo County. Therefore, HHSA is required to pass through the negotiated rates between DHCS and County’s MHP for contracted hospital facilities located outside of Yolo County. HHSA hospital inpatient agreements were drafted to align with the approved DHCS and MHP rate letters, rather than drafting amendments to hospital agreements each year to update rates (Please see Att. B. Sutter Center for Psychiatry Agreement, Exhibit B.2). For hospitals outside of Yolo County, DHCS and County MHP rates are negotiated outside of Yolo County, therefore Yolo County must use the rates set for hospitals outside of Yolo County.
DHCS is proposing additional rate increases for future fiscal years. In an effort to support transparency and to ensure HHSA leadership has the appropriate authority to authorize decisions regarding passing through rate increases for hospital provider agreements, HHSA requests BOS approval for the 7.50% rate increase for FY2025-26 to be passed-through to Sutter Center for Psychiatry. HHSA also requests approval to authorize the HHSA Director to accept future DHCS and County MHP letters with rate increase not to exceed 10% for all hospital providers. These rate increases are necessary as inflation is increasing for costs for providers.
While there is an increase in the rate as proposed by DHCS, the not-to-exceed contract amount remains the same and there is no fiscal impact to the County from this action. This is a pass through and the state makes the County whole.
While there is an increase in the rate as proposed by DHCS, the not-to-exceed contract amount remains the same and there is no fiscal impact to the County from this action. This is a pass through and the state makes the County whole.
Collaborations (including Board advisory groups and external partner agencies)
HHSA collaborates with DHCS and the County’s MHP and other agencies regarding hospital inpatient rates in the behavioral health systems.
Competitive Bid Process/Vendor Performance
N/A
Fiscal Impact
Fiscal impact (see budgetary detail below)
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $ 0
- Amount budgeted for expenditure:
- $ 0
- Additional expenditure authority needed:
- $
- On-going commitment (annual cost):
- $
Source of Funds for this Expenditure
- General Fund
- $0
Further explanation as needed:
There is no fiscal impact to the County from this action, as this is a pass through and the state makes the County whole.
Attachments
- Att. A. 2025-26 Rate Letter Sutter Center for Psychiatry
- Att. B. Sutter Center for Psychiatry Agreement
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Tony Kildare | Tony Kildare | 05/11/2026 08:35 AM |
| Evis Morales | Evis Morales | 05/14/2026 08:55 AM |
| Financial Services | David Estrada | 05/18/2026 03:05 PM |
| County Counsel | Hope Welton | 05/19/2026 09:11 AM |
| Laura Galindo | Laura Galindo | 05/19/2026 09:15 AM |
| Mark Bryan | Mark Bryan | 05/20/2026 01:43 PM |
| Evis Morales | Evis Morales | 05/21/2026 08:04 AM |
- Form Started By:
- Kimberly Mayfield
- Started On:
- 03/12/2026 10:20 AM
- Final Approval Date:
- 05/21/2026