DATE: August 25, 2026
TO: Board of Supervisors
SUBMITTED BY: Susan L. Holt, Department of Behavioral Health
SUBJECT: Retroactive Agreement with BHC Fremont Hospital, Inc. for State Mandated Inpatient Psychiatric Hospital Services
RECOMMENDED ACTION(S):
TITLE
1. Under Administrative Policy No. 34 for competitive bids or requests for proposals (AP 34), determine that an exception to the competitive bidding requirement under AP 34 is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances due to the non-competitive/emergency nature of inpatient psychiatric hospital referrals; and
2. Approve and authorize the Chairman to execute a retroactive Agreement with BHC Fremont Hospital, Inc. for inpatient psychiatric hospital services, effective July 1, 2025, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $40,000,000.
REPORT
There is no additional Net County Cost associated with the recommended actions. Approval of the recommended actions will allow the Department of Behavioral Health (DBH) to contract with BHC Fremont Hospital, Inc. to provide inpatient psychiatric beds and care to individuals with high acuity mental health needs. The Department, in its role as the County Behavioral Health Plan (BHP), is obligated to provide and reimburse for inpatient psychiatric hospital services and approval of the recommended actions will ensure the Department remains in compliance with Department of Health Care Services (DHCS). This item is countywide.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. Should your Board not approve the recommended actions, the Department will not be able to access Inpatient Psychiatric Hospital services from BHC Fremont Hospital, Inc. for persons served in need of this level of care.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
It is requested that the County find under AP 34 that an exceptio...
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