Title
a. Approve and authorize the Director of Health Services or designee to execute a retroactive Mental Health Services Agreement between the County of Monterey and Life Generations Healthcare, LLC for the provision of mental health services to Monterey County adult residents with severe psychiatric disabilities in a Skilled Nursing Facility Institution for Mental Disease with Special Treatment and Long Term Care Program, for a maximum County obligation of $7,292,700 for the term of July 1, 2026 through June 30, 2027; and
b. Approve and authorize the Director of Health Services or designee to execute up to three (3) future amendments that do not exceed 10% ($729,270) of the original Agreement, do not significantly change the scope of services, and do not increase the total not to exceed maximum amount over $8,021,970.
Report
RECOMMENDATION:
a. Approve and authorize the Director of Health Services or designee to execute a retroactive Mental Health Services Agreement between the County of Monterey and Life Generations Healthcare, LLC for the provision of mental health services to Monterey County adult residents with severe psychiatric disabilities in a Skilled Nursing Facility Institution for Mental Disease with Special Treatment and Long Term Care Program, for a maximum County obligation of $7,292,700 for the term of July 1, 2026 through June 30, 2027; and
b. Approve and authorize the Director of Health Services or designee to execute up to three (3) future amendments that do not exceed 10% ($729,270) of the original Agreement, do not significantly change the scope of services, and do not increase the total not to exceed maximum amount over $8,021,970.
SUMMARY:
Life Generations Healthcare, LLC operates licensed Skilled Nursing Facilities (SNF) with Special Treatment Program (STP) and Long-Term Care Program (LTC) with round-the-clock psychiatric care and treatment and services Monterey County adult residents with severe psychiatric disabilities who are LPS conserved. This is a new agreement that provides an alternative to utilizing State hospitals.
DISCUSSION:
The County previously contracted with GHC of SAC-SNF, LLC DBA Gramercy Court from April 1, 2025 until June 30, 2026, for mental health services to Monterey County adult residents with severe psychiatric impairment that has led to their grave disability and require a Skilled Nursing Facility (SNF). This Fiscal Year, several facilities have been added to provide various locations for adult placements. Life Generations Healthcare, LLC is the main entity which includes Bayberry Skilled Nursing and Healthcare Center, Gramercy Court Skilled Nursing Facility, Siena Skilled Nursing and Rehabilitation Center, and Walnut Creek Skilled Nursing and Rehabilitation Center. These facilities operate as SNF Institution for Mental Disease (IMD) for adults with psychiatric impairments and disabilities that require a locked skilled nursing level of care and often take severe cases that other facilities do not. Treatment includes individualized programs and rehabilitation services to develop new self-management skills. This Agreement with Life Generations Healthcare, LLC is for one (1) fiscal year term from July 1, 2026 to June 30, 2027, for Monterey County residents with psychiatric impairments and disabilities, which historically is limited.
Due to late and ongoing contract negotiations, with direction for an effective date of July 1, 2026, the agreement took additional time to review and agendize, which by necessity makes the agreement retroactive when presented to your board.
Approval of this Agreement meets the requirements of the State Welfare and Institutions Code 5600 (Bronzan-McCorquodale Act) and the California Code of Regulations Titles 9 &22 and sustains the continuity of core services to seriously mentally ill clients of Monterey County.
This Agreement contains the County’s standard 30-day “no cause” provision (Section V, B) and an additional defunding provision (Section V, D), which provides the County the ability to amend or terminate the Agreement in the event of a reduction and/or termination of funding.
This work supports the following County of Monterey Health Department 2025-2028 Strategic Plan Goal(s): 2) Provide Exceptional Person-Centered Care through Accessible, Community-Focused Health services. It also supports one of the ten essential public health services, specifically: 7) Link people to needed personal health services and assure the provisions of health care when otherwise unavailable.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
The office of the County Counsel and Auditor-Controller have reviewed and approved this Agreement as to form and fiscal provisions, respectively.
FINANCING:
This Agreement is funded by 1991 Realignment funding. The funds for this Agreement for Fiscal Year 2026-27 are included in the Health Department’s Behavioral Health (Fund 1310, Department 400005) Fiscal Year 2026-27 Adopted Budget.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
This agreement will ensure access to culturally and linguistically appropriate, customer-friendly, quality health services, will link people to needed personal health services, and will assure the provision of healthcare when otherwise unavailable. This agreement aligns with the Board of Supervisors Strategic Plan Goal of well-being and quality of life.
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
____ Dynamic Organization and Employer of Choice
Prepared By: Jacqueline A. Goetz, Management Analyst II, 755-8419
Approved by: Elsa Mendoza Jimenez, Director of Health Services, 755-4526
Attachments:
Board Report
Agreement