Title
Approve and authorize the Director of Health Services or designee to execute Amendment No. 4 to Agreement A-16787 with Orbit Health Inc., (Orbit) for the placement of licensed mental health providers, extending the term for two additional years with a term of May 15, 2023 to May 31, 2028 and increasing the contract amount by $1,616,870 for a revised contract amount not to exceed $3,802,350.
Report
RECOMMENDATION:
It is recommended that the County of Monterey Board of Supervisors:
Approve and authorize the Director of Health Services or designee to execute Amendment No. 4 to Agreement A-16787 with Orbit Health Inc., (Orbit) for the placement of licensed mental health providers, extending the term for two additional years with a term of May 15, 2023 to May 31, 2028 and increasing the contract amount by $1,616,870 for a revised contract amount not to exceed $3,802,350.
SUMMARY:
The Health Department Clinic Services Bureau (Clinic Services) operates twelve community clinic sites designated as Federally Qualified Health Centers (FQHCs) which provide preventive, primary, and specialty medical care services.
Approval of this agreement with Orbit Health Inc. will allow Clinic Services to continue providing essential mental health services that remain in high demand and have a short supply through telepsychiatry.
Approving the recommended action will ensure uninterrupted access to these services while also supporting up to four mental health providers, including the addition of a Child and Adolescent Psychiatrist over the next two years, helping to expand capacity and better meet community needs.
DISCUSSION:
Orbit Health is a psychiatrist-led company delivering telepsychiatry services to over a dozen counties in California since 2015. Orbit’s experience with providing County-operated mental health services includes Los Angeles County, Imperial, and Orange Counties.
Due to the competitive market to hire psychiatrists, it has been a challenge to recruit mental health providers to provide in-person patient services. In an effort to continue to provide patient access to mental health services, Clinic Services entered into a Standard Agreement with Orbit for licensed mental health physicians, nurse practitioners, physician assistants, and/or licensed therapists to provide telepsychiatry for an initial term of May 15, 2023, to May 31, 2024, in the amount of $198,000.
Amendment No. 1 was executed on January 1, 2024, to adjust the rate sheet for services. On April 3, 2024, the Board of Supervisors approved Amendment No. 2 to increase the contract amount by $1,788,800 and extend the term an additional two years for a new term of May 15, 2023, to May 31, 2026. Amendment No. 3 was effective October 1, 2025, to adjust the rate sheet to market rates and increase the amount of the Agreement by $198,680.
Approval of Amendment No.4 will support the continuation and expansion of telepsychiatry services to further meet the short supply and growing demand for mental health services.
This work supports the County of Monterey Health Department 2025-2028 Strategic Plan Goal(s). Enhance Employee Wellbeing and Workforce Capacity. It also supports the following of the ten essential public health services, specifically linking people to needed personal health services and assure the provision of health care when otherwise unavailable.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel and Auditor-Controller have reviewed this Amendment as to legal form and fiscal provisions, respectively.
FINANCING:
There will be no impact on the General Fund resulting from approval of this Amendment No. 4. There are sufficient appropriations in the Health Department’s FY 2025-26 Adopted Budget (001-4000-HEA007). Appropriations for future years will be included in the respective FY’s Requested Budget. This Amendment No. 4 is funded by revenues generated from Medi-Cal and Medicare reimbursements.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
The approval of Amendment No. 4 will allow the continuation and expansion of telepsychiatry services to further meet the growing demand for mental health services.
Mark a check next to the related Board of Supervisors Strategic Plan Goals:
X Well-Being and Quality of Life
____ Sustainable Infrastructure for the Present and Future
____ Safe and Resilient Communities
____ Diverse and Thriving Economy
Prepared by: Daniel Garcia, Management Analyst I, 796-1293
Approved by: Elsa Mendoza Jimenez, Director of Health Services, 755-4526
Attachments:
Board Report
Amendment No. 4
Amendment No. 3
Amendment No. 2
Amendment No. 1
Agreement