Memorandum
Date: February 10, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Approve Amendment No.2 to the Agreement Between the County of Lake and Redwood Community Services, Inc. Phoenix House Residential Treatment Facility for Fiscal Year 2025-2 with no change to the contract maximum and authorized the Board Chair to Sign.
Executive Summary:
Approval is requested for Amendment No. 2 to the Agreement between the County of Lake and Redwood Community Services, Inc. for operation of the Phoenix House Crisis Residential Treatment Facility for Fiscal Year 2025-26. This amendment revises the Medi-Cal fee-for-service reimbursement pass-through percentage paid to the contractor in response to Behavioral Health Payment Reform reimbursement impacts.
This amendment implements two related fiscal updates in response to Medi-Cal Behavioral Health Payment Reform impacts and County cash-flow management requirements. First, the amendment revises the Medi-Cal fee-for-service reimbursement pass-through percentage paid to the contractor, maintaining the existing sixty-five percent (65%) rate for services rendered from July 1, 2025 through December 31, 2025, and adjusting the rate to sixty percent (55%) effective January 1, 2026, to align with current State reimbursement methodology and ensure fiscal sustainability.
Second, the amendment clarifies payment timing provisions in Exhibit B, Section 2.6 (Claiming and Invoicing), specifying that County payment will be issued within thirty (30) business days following receipt of reimbursement from the Department of Health Care Services (DHCS) for undisputed invoices. This update aligns contract language with County fiscal procedures and State reimbursement timing under Payment Reform
All other terms and conditions of the agreement remain unchanged. No increase to the contract maximum is requested as part of this amendment. The adjustment aligns contractor reimbursement with current State payment methodology while supporting ongoing access to crisis residential treatment services for Lake County residents.
Approval of this amendment supports fiscal sustainability of County Behavioral Health operations while maintaining critical crisis services.
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Recommended Action:
Approve Amendment No.2 to the Agreement Between the County of Lake and Redwood Community Services, Inc. Phoenix House Residential Treatment Facility for Fiscal Year 2025-2 with no change to the contract maximum and authorized the Board Chair to Sign.