Memorandum
Date: February 24, 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 Santa Rosa Behavioral Healthcare Hospital for Acute Inpatient Psychiatric Hospital Services in the Amount of $750,000 for Fiscal Year 2025-26 and Authorize the Board Chair to Sign.
Executive Summary:
The Lake County Behavioral Health Services Department (LCBHS) is seeking approval for an agreement with Santa Rosa Behavioral Healthcare Hospital to provide acute inpatient psychiatric hospital services and professional services. This agreement ensures that Lake County residents have access to 24/7 staffing and legally required care for stabilization and intensive psychiatric treatment in a licensed facility.
Rationale for Exemption from Competitive Bidding: Pursuant to the County’s Consultant Selection Policy (Chapter 4), this agreement is recommended for an exemption from competitive bidding based on the following:
• Statutory Obligation & Public Health (Policy 4.1.3.1): The County has a statutory mandate under the California Mental Health Plan (MHP) to provide or pay for specialty mental health services for its beneficiaries. Because hospitalizations often occur in emergency situations before LCBHS is notified, the County must have established agreements to facilitate the Concurrent Review and authorization process. A delay caused by a standard RFP process for these essential emergency services would threaten public health and safety.
• Prevention of Service Interruption (Policy 4.1.3.2): Santa Rosa Behavioral Healthcare Hospital is a critical regional provider. Adhering to the standard competitive selection process would cause an interruption of essential public services for Lake County residents requiring stabilization beyond local capacity.
• Specialized Nature of Services (Policy 4.1.1.B.1): These are "special services" governed by complex federal and state laws, including Medi-Cal Title 9 and Title 22 regulations. Due to the specialized clinical licensure required and the high level of regulation, it is in the County’s best interest to maintain this partnership.
Fiscal Impact: The agreement is effective from July 1, 2025, to June 30, 2026, with a total compensation limit of $750,000. Payment is based on actual services rendered and is contingent upon available federal, state, and county funds.
Rate Highlights (Medi-Cal Beneficiaries):
• Ages 0-21: $1,740 / Day
• Ages 22-64: $1,565 / Day
• Ages Over 64: $1,600 / Day
• Administrative Day Services: $950 / Day
• 1:1 Staffing (Patient Specific): $30 / Hour
Additionally, this agreement includes a SmartCare Access Provision, where the County provides the contractor with up to three user licenses for the Electronic Health Record system at no cost to facilitate administrative efficiency and care coordination.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!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 Santa Rosa Behavioral Healthcare Hospital for Acute Inpatient Psychiatric Hospital Services in the Amount of $750,000 for Fiscal Year 2025-26 and Authorize the Board Chair to Sign.