Title
a. Approve and authorize the Director of Health Services or designee to execute a non-standard Mental Health Service Agreement with Crestwood Behavioral Health, Inc. for the provision of mental health services for adults with severe psychiatric disabilities, for a total agreement amount of $2,720,345 for the term of July 1, 2026 through June 30, 2027;
b. Approve non-standard indemnification and insurance provisions as recommended by the Director of Health Services; and
c. Approve and authorize the Director of Health Services or designee to execute up to three future amendments that do not exceed 10% ($272,035) of the original agreement, do not significantly change the scope of services, and do not increase the total not to exceed maximum amount over $2,992,380.
Report
RECOMMENDATION:
It is recommended that the County of Monterey Board of Supervisors:
a. Approve and authorize the Director of Health Services or designee to execute a non-standard Mental Health Service Agreement with Crestwood Behavioral Health, Inc. for the provision of mental health services for adults with severe psychiatric disabilities, for a total agreement amount of $2,720,345 for the term of July 1, 2026 through June 30, 2027;
b. Approve non-standard indemnification and insurance provisions as recommended by the Director of Health Services; and
c. Approve and authorize the Director of Health Services or designee to execute up to three future amendments that do not exceed 10% ($272,035) of the original agreement, do not significantly change the scope of services, and do not increase the total not to exceed maximum amount over $2,992,380.
SUMMARY:
The County of Monterey Health Department, Behavioral Health Bureau, requests approval of an Agreement with Crestwood Behavioral Health, Inc. to provide mental health services to Monterey County adult residents with severe psychiatric disabilities.
DISCUSSION:
Crestwood Behavioral Health, Inc. has provided mental health services for approximately 18 years and for 30 years prior under the previous corporate umbrella of Crestwood Hospitals. Crestwood has eighteen (18) facilities ranging in size from twelve (12) to nearly 200 beds, four (4) of which are covered under the terms of this agreement. Crestwood’s programs provide recovery oriented psychiatric services to adults, older adults, and transition-aged youth with severe and persistent mental health illness, and their treatment services are individualized to meet the specific needs of each client to assist clients to live independently and develop new skills.
The County has contracted with Crestwood Behavioral Health, Inc. for mental health services to Monterey County adult residents with severe psychiatric disabilities in these varying facilities for the periods of Fiscal Years (FY) 2012-2025. Approval of this Agreement will provide the necessary resources and bed placements available for clients to live in the least restrictive community setting as possible.
The Agreement also complies with the requirements of the Welfare and Institutions Code Section 5600 (Bronzan-McCorquodale Act).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:
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 Requested 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