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Approve the California Department of Health Care Services (DHCS) Behavioral Health Plan (BHP) contract to continue administering a Medi-Cal funded Behavioral Health Plan in Solano County; and Delegate authority to the County Administrator to execute the contract and any subsequent amendments with no fiscal impact, with County Counsel concurrence
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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 approve the California Department of Health Care Services (DHCS) Behavioral Health Plan (BHP) contract to continue administering a Medi-Cal funded BHP in Solano County; and delegate authority to the County Administrator to execute the contract and any subsequent amendments with no fiscal impact, with County Counsel concurrence.
SUMMARY:
This new contract between the California Department of Health Care Services (DHCS) and the Solano County Health and Social Services, Behavioral Health Division, updates the legal framework for administering the Medi-Cal Behavioral Health Plan (BHP) in Solano County. It authorizes the County to operate the plan and access Medi-Cal funding, while outlining requirements for the BHP’s administrative structure, quality standards (including timeliness, access, and outcomes), problem resolution procedures, data reporting, and other accountability measures.
DHCS has provided California County Behavioral Health Plans with an updated contract covering the period of July 1, 2025 through December 31, 2026 to clarify language regarding multiple aspects of the contract including:
• Appeal and grievance procedures
• Network adequacy and timely access requirements
• Dispute resolution procedures.
This contract term is July 1, 2025 - December 31, 2026 and supersedes the previous agreement between DHCS and the County of Solano approved in 2023. This contract will be in place until the execution of the BHP integrated contract that is expected to go into effect January 1, 2027.
FINANCIAL IMPACT:
Medi-Cal services are financed through a combination of Federal Financial Participation (FFP), State General Fund (SGF), 2011 Realignment funds, and revenues from the Behavioral Health Services Act (BHSA). This agreement provides the requirements for claiming Medi-Cal services.
DISCUSSION:
In 2023, the Board approved a new 5-year standard agreement between the California Department of Health Care Services (DHCS) and Solano County to operate Solano County’s Mental Health Plan and provide specialty mental health services (SMHS) to Medi-Cal, uninsured and indigent beneficiaries in Solano County, replacing the agreement that had expired in 2022. The agreement allows the County to bill Short Doyle Medi-Cal and be reimbursed for eligible specialty mental health services.
In addition, Solano County has a contract with DHCS to participate in the Drug Medi-Cal Organized Delivery System (DMC-ODS) through the Partnership HealthPlan of California (PHC) Regional Model. This contract was originally entered into in July 2020. On September 23, 2025, the Board approved an updated DMC-ODS contract for the term of July 1, 2025 through December 31, 2026.
DHCS is working toward a model where all counties will execute an integrated Medi-Cal contract that will cover both SMHS and DMC-ODS. This is expected to be executed by January 2027 and is intended to improve the health care outcomes and experience of care for Medi-Cal members, particularly those living with co-occurring mental health and substance use disorders.
In the meantime, DHCS is phasing in alignment of the terms and conditions for the separate contracts for SMHS and DMC-ODS. The DMC-ODS contract approved by the September 2025 contains these updated terms. This item brings a revised SMHS contract with the updated terms. This contract will supersede the contract approved in 2023 and go through December 31, 2026 at which time it is anticipated the new integrated contract will be executed for January 2027 for both SMHS and DMC-ODS.
This new contract does not modify covered benefits or change the financing structure, but it does align the boilerplate language and shared requirements across programs to minimize program-specific variation. This includes aligning terminology; standardizing appeal, grievance, conflict, and dispute resolution procedures across programs; working toward integration of quality assurance and performance improvement work plans across programs; and aligns provisions for network adequacy and timely access.
ALTERNATIVES:
The Board may choose not to approve this contract; however, such an action would result in Solano County losing its legal right to provide necessary Behavioral Health services to residents and the ability to draw down federal dollars crucial for funding such services.
OTHER AGENCY INVOLVEMENT:
H&SS partners with county-owned and operated and subcontracted outpatient behavioral health programs, providers, and multiple community partners to facilitate the Behavioral Health Plan requirements delineated in the contract between DHCS and Solano County.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION