Memorandum
Date: February 25, 2025
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Consideration of Amendment No.1 to the Agreement Between County of Lake and Aurora Behavioral Health for Acute Inpatient Psychiatric Hospital Services and Professional Services Associated with Acute Inpatient Psychiatric Hospitalizations for FY 2024-25 in the amount of $800,000.00.
Executive Summary:
This item seeks Board approval for Amendment No. 1 to the Agreement between the County of Lake and Aurora Behavioral Health for acute inpatient psychiatric hospital services and professional services associated with acute inpatient hospitalizations for Fiscal Year 2024-2025.
Under the original Agreement, effective July 1, 2024, Aurora Behavioral Health was contracted to provide critical psychiatric hospitalization services to meet the County’s obligations under California’s Medi-Cal Specialty Mental Health Services (SMHS) requirements. These requirements include ensuring access to medically necessary acute inpatient psychiatric care for Medi-Cal beneficiaries who meet specific medical necessity criteria, as outlined in the California Code of Regulations (CCR), Title 9, Sections 1810.345 and 1830.205.
Utilization of Aurora Behavioral Health's services has exceeded initial projections due to a higher-than-anticipated demand for acute psychiatric care. To ensure continued compliance with these state-mandated obligations and to maintain access to care, the proposed amendment increases the total compensation payable under the Agreement by $500,000, raising the contract maximum to $800,000.
This increase aligns with Lake County’s Purchasing Ordinance, which allows for amendments to contracts to address emergent needs, provided sufficient funding is available and the amendment serves the best interests of the County. The County will fund this amendment through a combination of Medi-Cal reimbursements and local behavioral health funds, ensuring no interruption in the availability of essential services for individuals experiencing psychiatric crises.
Approval of this amendment will enable the County to fulfill its statutory responsibility to provide timely, medically necessary psychiatric hospital services and sustain the essential partnership with Aurora Behavioral Health.
If not budgeted, fill in the blanks below only:
Estimated Cost: $8000,000.00 Amount Budgeted: __$800,000.00 Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☒ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☒ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☐ Economic Development ☐ Infrastructure ☐ County Workforce
☐ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action: Approve Amendment No.1 to the Agreement Between County of Lake and Aurora Behavioral Health for Acute Inpatient Psychiatric Hospital Services and Professional Services Associated with Acute Inpatient Psychiatric Hospitalizations for FY 2024-25 in the amount of $800,000.00 and authorize the Board Chair to sign.