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Approve a second contract amendment for $125,280 with Crestwood Behavioral Health, Inc. for the current period through June 30, 2026, for a total contract amount of $11,712,240 to provide acute psychiatric inpatient services; Approve a second contract amendment for $330,499 with Psynergy Programs, Inc., for the current period through June 30, 2026, for a total contract amount of $3,225,246 to provide subacute residential mental health treatment; and Delegate authority to the County Administrator to execute these contract amendments and any subsequent amendments, with County Counsel concurrence, up to an aggregate of $74,999 per contract
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Published Notice Required? Yes ___ No X _
Public Hearing Required? Yes ___ No X _
DEPARTMENTAL RECOMMENDATION:
The Department of Health and Social Services (H&SS) recommends that the Board of Supervisors:
1. Approve a second contract amendment for $125,280 with Crestwood Behavioral Health, Inc. for the current period through June 30, 2026, for a total contract amount of $11,712,240 to provide acute psychiatric inpatient services;
2. Approve a second contract amendment for $330,499 with Psynergy Programs, Inc., for the current period through June 30, 2026, for a total contract amount of $3,225,246 to provide subacute residential mental health treatment; and
3. Delegate authority to the County Administrator to execute these contract amendments and any subsequent amendments, with County Counsel concurrence, up to an aggregate of $74,999 per contract.
SUMMARY:
Solano County Behavioral Health continues to experience increased demand for treatment resources for clients with serious and complex behavioral health needs. At the same time, appropriate placement options remain limited throughout California. Solano County Behavioral Health engages with community agencies to ensure access to medically necessary care for high-acuity clients who require structured treatment and support. The goal of these services is to reduce symptoms related to chronic grave disability, improve client stability and independence, and support successful transitions to less restrictive, community-based living. Over time, these outcomes help reduce the need for hospitalization, incarceration, and placement in more restrictive levels of care within the Behavioral Health system.
Crestwood Behavioral Health, Inc. provides intensive inpatient mental health services at its psychiatric health facility in Vallejo. Psynergy Programs, Inc. is an augmented board and care (ABC) facility, which is a “step down” from a long-term locked facility, that provides clients with severe and persistent mental illness access to 24-hour care, supervision, meals, mental health and other wellness services, and medication management. The Psynergy program’s primary goal is to assist clients in acquiring the skills needed to transition to a less restrictive independent living environment.
Amendments to both of these contracts ensures that critical behavioral health services are available through the remainder of FY2025/26.
FINANCIAL IMPACT:
Both contract amendments are funded with 1991 and 2011 Realignment, Medi-Cal revenue, and County General Fund. Appropriations are available in the FY2025/26 Working Budget. There is no additional impact on the County General Fund.
DISCUSSION:
Solano County Behavioral Health uses locked psychiatric hospitals for clients placed on a 5150 due to danger to self, danger to others, or grave disability. Clients who are chronically gravely disabled may be placed under mental health conservatorship and transferred to locked skilled nursing facilities or Institutions for Mental Disease (including mental health rehabilitation centers). These settings provide treatment aimed at reducing grave disability, improving functioning, and increasing independence. When clinically appropriate, clients may transition to augmented board and care (ABC) facilities or regular board and care homes. Limited psychiatric beds and placement options create system-wide impacts, affecting services such as the Crisis Stabilization Unit and local emergency departments. Contracted providers play a critical role in maintaining timely and appropriate care at all levels.
On June 25, 2024, the Board approved a two-year contract with Crestwood Behavioral Health, Inc. for $11,586,960 to continue operating their Psychiatric Health Facility (PHF) services in Vallejo for adults 18 years of age and older. The PHF has 16 beds, of which 14 are designated as guaranteed beds for Solano County Behavioral Health clients. Care includes, but is not limited to, the following essential services: psychiatry, clinical psychology, psychiatric nursing, social work, rehabilitation, drug administration, and appropriate food services for those persons whose physical and mental health needs cannot be met in an affiliated hospital or outpatient setting.
Contract fund utilization is on pace to exceed the current contract amount before contract expiration on June 30, 2026. The placement rate for indigent clients has been higher than anticipated. Although these individuals have health coverage that typically offsets the cost of treatment and medications, the overall volume of placements has exceeded projections. In addition, the first amendment, executed on March 4, 2025, increased the FY2025/26 service rates without increasing the total contract maximum amount. As a result, additional funding is now required for PHF services. The second amendment of $125,280 is needed to continue the care of current clients placed at the contractor’s PHF through the end of FY2025/26.
On June 24, 2025, the Board approved a one-year contract with Psynergy Programs, Inc., for $2,894,747. ABC facilities like Psynergy Programs, Inc. are unlocked facilities with delayed egress that serve clients who have been psychiatrically evaluated to be severely mentally ill with limited capacity to meet their basic needs without around-the-clock residential treatment. Many clients requiring an ABC placement are chronically gravely disabled and are placed under a mental health conservatorship by an order of the court. There has been a temporary increase in the need for ABC beds due to the change of vendor at the Beck Campus MH Residential Facility. This resulted in an increase in the Psynergy client census from 21 at the beginning of FY2025/26 to an expected 27 at the end of the fiscal year. Psynergy Programs Inc. has demonstrated the ability to provide this specialized level of care to meet the psychiatric needs of Solano County Behavioral Health’s most vulnerable clients.
Psynergy’s first contract amendment, executed on August 27, 2025, modified rates for FY2025/26, without changing the total contract amount. The second contract amendment, for $330,499, for a total contract amount of $3,225,246, provides for the continuation of intensive services for their higher census at the revised FY2025/26 rates through June 30, 2026.
ALTERNATIVES:
The Board could choose not to approve these contract amendments. This is not recommended as the County is required to provide psychiatric services for clients served in the County behavioral health system who require mental health care for their own safety and the safety of the community. These amendments will ensure continued psychiatric coverage to meet these clients’ service needs.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION