LA County Board

12.\nContracting for State Hospital Beds\nRecommendation as submitted by Supervisor Hahn: Approve and authorize the\nChief Deputy Director of Mental Health to execute the Purchase of State\nHospital Beds Memorandum of Understanding (MOU) with the Department of\nState Hospitals (DSH) and the California Mental Health Services Authority\n(CalMHSA) for Fiscal Years (FYs) 2025-26 and 2026-27, effective July 1, 2025\nthrough June 30, 2027, to purchase and utilize State hospital beds at rates\nnegotiated by CalMHSA. There is no cost associated with the MOU. The FY\n2025-26 Final Adopted Budget for State hospital bed usage, totaling\n$78,900,000, is fully funded by Sales Tax Realignment revenue. Authorize the\nChief Deputy Director to do the following:\nExecute an amendment to the sole source Participation Agreement\n(Agreement) with CalMHSA to continue participation in the State\nHospitals Program. The Agreement authorizes CalMHSA to negotiate and\ncontract DSH on behalf of participating counties for the procurement of\nState hospital beds. The term of the CalMHSA Agreement amendment is\neffective July 1, 2025 through June 30, 2026, with an option to extend for\none additional Fiscal Year, through June 30, 2027. The CalMHSA\nAgreement is fully funded by Sales Tax Realignment revenue with an\nannual Total Contract Amount (TCA) of $298,626 for FY 2025-26.\nThe TCA of the Agreement with CalMHSA does not include the cost of\nState hospital beds.\nExecute amendments to the MOU and/or execute future MOUs through\nJune 30, 2030 to ensure continuous utilization of State hospital beds on\nterms negotiated by CalMHSA, provided the amendments and future\nMOUs will be subject to prior review and approval.\nExecute amendments or modifications to the Agreement and/or execute\nfuture Agreements with CalMHSA through June 30, 2030, including\namendments that extend the term, add, delete, modify, or replace Exhibit\nA - Program Description and Funding, reflect Federal, State and County\nregulatory and/or policy changes, and increase the TCA provided that\nsufficient funds are available to continue participation in the State\nHospitals Program.\nExecute an agreement for reimbursement with non-Medi-Cal primary\nhealth plans to ensure the Department of Mental Health is able to place\nand pay for DSH beds for a County resident that meets medical criteria,\nincluding authority to negotiate and execute future amendments as\nnecessary to reflect changes in services and funding, operational\nchanges and/or modify other terms and conditions.\nTerminate the MOU and/or terminate the Agreements. The Chief Deputy\nDirector will notify the Board in writing of such termination action.\n(25-5027)\nMotion by Supervisor Hahn\nMotion by Supervisor Hahn (Updates Following Cluster)