Memorandum
Date: January 6, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Approve the Agreement Between County of Lake and BHC Heritage Oaks Hospital, Inc. for Acute Inpatient Psychiatric Hospital Services and Professional Services Associated with Acute Inpatient Psychiatric Hospitalization in the amount of $300,000 for Fiscal Year 2025-2026 and Authorize the Board Chair to Sign.
Executive Summary:
BHC Heritage Oaks, Inc. provides acute psychiatric inpatient services that are not otherwise available in Lake County and serves as a critical placement resource when local or regional beds are unavailable. The facility is Medi-Cal certified and is utilized to ensure timely access to medically necessary inpatient psychiatric care for eligible beneficiaries when a lower level of care is not clinically appropriate. Because patient placement depends on clinical need, bed availability, and state licensure, competitive bidding is not practicable for these services. Accordingly, this contract is exempt from competitive procurement requirements pursuant to Lake County Purchasing Ordinance §38.2(2).
During Fiscal Year (FY) 2024-25, a total of 27 Lake County clients received acute inpatient psychiatric hospitalization services, accounting for 276 total bed days. This equates to an average of approximately 10.23 bed days per month and an average length of stay of approximately 10.22 bed days per client. Utilization reflects time-limited inpatient placements authorized based on medical necessity, with discharge planning focused on transitioning individuals to appropriate lower levels of care as soon as clinically feasible.
The total cost associated with acute inpatient psychiatric hospitalization services for this utilization period was approximately $290,635.78, resulting in an average cost of approximately $10,764.29 per client.
Acute inpatient psychiatric services remain a critical component of Lake County’s behavioral health continuum of care, particularly for individuals experiencing severe psychiatric symptoms that cannot be safely managed in outpatient or residential settings. Lake County Behavioral Health Services continues to prioritize crisis stabilization, diversion strategies, and step-down placements when clinically appropriate to manage utilization and control costs while ensuring access to medically necessary care.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!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 County of Lake and BHC Heritage Oaks Hospital, Inc. for Acute Inpatient Psychiatric Hospital Services and Professional Services Associated with Acute Inpatient Psychiatric Hospitalization in the amount of $300,000 for Fiscal Year 2025-2026 and Authorize the Board Chair to Sign.