Approve fourth amendment to Agreement No. 21-139 with Mental Health Management I, Inc., dba Canyon Manor, to reduce funding by $435,000 for fiscal year FY2025-26 for a new contract maximum of $4,340,000 for the period of July 1, 2021 through June 30, 2026 for the provision of mental health rehabilitation center (MHRC) residential treatment services. (No general fund impact) (Morales)

Approve fourth amendment to Agreement No. 21-139 with Mental Health Management I, Inc., dba Canyon Manor, to reduce funding by $435,000 for FY2025-26 for a new contract maximum of $4,340,000 for the period of July 1, 2021 through June 30, 2026 for the provision of 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 MHRC residential 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 FY2023-24. On or about May 29, 2024, the County exercised its option to extend the Agreement per its terms for 2024-25. On or about October 21, 2025, the Agreement was amended to decrease funding for FY2024-25 and extended the term of the Agreement through June 30, 2026.

HHSA makes collaborative decisions on client placements that consider the least restrictive level of care necessary to effectively serve clients.  During FY 2025-26, there was a decreased need for bed days at Canyon Manor because clients were either stepped down to a lower level of care or initiall placed in other facilities at a lower level of care.  HHSA is therefore requesting approval of this fourth amendment to decrease funding for FY2025-26 by $435,000 due to decreased utilization of this Agreement.  This contract decrease will allow for unspent funds to be reallocated to other contracts with higher utilization.

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 single source procurement for these services. Canyon Manor operates secure residential care for adult HHSA psychiatric consumers; many of our most fragile SMI consumers that 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.

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

HHSA confirms Canyon Manor, is performing satisfactorily under this agreement to date. Canyon Manor provides services to the County’s most vulnerable clients and has been instrumental in establishing successful client–program relationships and supporting the stabilization of seriously mentally ill adults.

Below are Performance Measure data for FY 2025-26 through Quarter 2:
# of Yolo County clients served in a Canyon Manor Facility: <11
# of treatment days (total): 368
Average length of stay in Canyon Manor bed: 184 days
% of Yolo County Clients who returned to the community within 6 months of facility admission: 0
% of Yolo County Clients who returned to the community within 12 months of facility admission: 0
% of Yolo County clients discharged from the facility to a lower level of care from the facility: 0
# of Yolo County Clients who experience one or fewer acute psychiatric hospital stays during the placement at the facility: <11