Memorandum
Date: March 17, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Approve the Agreement Between the County of Lake and North Valley Behavioral Health, LLC. for the Provision of Acute Inpatient Psychiatric Hospital Services and Associated Professional Services for Fiscal Year 2025-2026, in an Amount Not to Exceed $500,000 and Authorize the Board Chair to Sign.
Executive Summary:
Lake County Behavioral Health Services contracts with North Valley Behavioral Health to provide acute inpatient psychiatric hospital services and associated professional services for Lake County beneficiaries who meet medical necessity criteria for Psychiatric Health Facility (PHF) level of care. These services ensure timely access to crisis stabilization and inpatient psychiatric treatment in compliance with State and federal Medi-Cal requirements.
During Fiscal Year 2024-2025, sixteen (16) Lake County clients received services at North Valley Behavioral Health. A total of forty-one (41) inpatient bed days were utilized, with total expenditures of $460,632.
Services are provided pursuant to the Agreement for Acute Inpatient Psychiatric Hospital Services for Fiscal Year 2025-2026, with compensation not to exceed $500,000.
The contracted per diem rate for PHF level of care is $1,163 per day, consistent with the approved agreement. North Valley Behavioral Health is a licensed 16-bed Psychiatric Health Facility providing acute stabilization services in compliance with State and Medi-Cal requirements. Utilization of out-of-county PHF services remains necessary due to limited local inpatient psychiatric capacity and the need to secure immediate placement for individuals meeting 5150 criteria and medical necessity requirements.
Rationale for Exemption from Competitive Bidding:
Pursuant to the County Consultant Selection Policy (Chapter 4), this agreement is recommended for an exemption from competitive bidding based on the following:
• Statutory Mandate & Public Health (Policy 4.1.3.1): The County has a statutory obligation under the California Mental Health Plan (MHP) to provide or pay for specialty mental health services for its beneficiaries. Because these hospitalizations are often emergency admissions occurring before LCBHS is notified, established agreements are essential to facilitate the Concurrent Review and authorization process. A situation threatening public health and safety exists when time is of the essence in obtaining these crisis stabilization services.
• Prevention of Service Interruption (Policy 4.1.3.2): North Valley Behavioral Health is one of the only facilities willing and able to accept Lake County conserved clients directly from jail for psychiatric stabilization. Adhering to standard selection procedures would cause an interruption of essential public services for this vulnerable population.
• Specialized Nature of Services (Policy 4.1.1.B.1): These are specialized services as defined in Government Code Section 31000. These services ensure timely access to crisis stabilization and inpatient treatment in compliance with State and federal Medi-Cal requirements, including Title 9 and Title 22 regulations. Due to limited local inpatient capacity and the specific clinical needs of conserved individuals, it is determined to be in the County’s best interest to maintain this partnership.
If not budgeted, fill in the blanks below only:
Estimated Cost: $500,000_ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!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 the Agreement between the County of Lake and North Valley
Behavioral Health, LLC. for the provision of acute inpatient psychiatric hospital services and
associated professional services for Fiscal Year 2025-2026, in an amount not to exceed
$500,000 and authorize the Chair of the Board to sign.