REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 5, 2026
FROM
JOSHUA DUGAS, Acting Director, Department of Behavioral Health
SUBJECT
Title
Non-Financial Contract with the California Department of Health Care Services for Mental Health, Substance Use Disorder, and Supportive Services
End
RECOMMENDATION(S)
Recommendation
Approve non-financial Contract (State Agreement No. 26-60054) with the California Department of Health Care Services, for a mandated County Performance Contract, outlining conditions and requirements to receive funding for the provision of mental health, substance use disorder, and supportive services, for the period of July 1, 2026 through June 30, 2029.
(Presenter: Joshua Dugas, Acting Director, 252-5142)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost) as approval of the Mandated County Performance Contract is non-financial in nature. However, the Mandated County Performance Contract establishes the requirements necessary for San Bernardino County (County) to receive federal and state funding for behavioral health services for the period of July 1, 2026 through June 30, 2029.
BACKGROUND INFORMATION
The Department of Behavioral Health (DBH) is the administrator of the Managed Care Medi-Cal Mental Health Plan (MHP) for the County and is required to enter into a contract with the California Department of Health Care Services (DHCS) for the delivery of mental health services provided under specific types of funding to the residents of the county. DBH must comply with the conditions and requirements outlined in the recommended Contract for quality assurance, the scope of work and program standards, budget requirements, and accountability measures for local mental health programs.
The Contract specifies the state and federal codes and regulations required to operate, maintain, or receive reimbursement for programs such as those funded under the Behavioral Health Services Act (BHSA), Lanterman-Petris-Short Act, Projects for Assistance in Transition from Homelessness, Community Mental Health Services Block Grant, Substance Use Prevention, Treatment, and Recovery Services Block Grant, and Crisis Counseling Assistance and Training Program, as well as outlining DHCS’ oversight provisions of the County’s community mental health services pursuant to the Bronzan-McCorquodale Act. The Bronzan-McCorquodale Act was enacted by the California State Legislature to realign responsibility for the provision of community mental health services to counties and provide a dedicated funding source.
DBH is the local MHP responsible for providing certain mental health services, including Specialty Mental Health Services, to county residents. DBH contracts with partners such as Inland Empire Health Plan and Molina in the administration of Medi-Cal behavioral health benefits for individuals experiencing severe and persistent mental illness and suffering from substance use disorders (SUD). Additionally, through the use of BHSA funding, DBH provides outreach, supportive services, and community education to those who are unserved, underserved, or inappropriately served, which include prevention and early intervention, crisis services, and recovery-based services that are provided through an extensive continuum of care of County-operated clinics, fee-for-service, and contracted DBH service providers.
On March 26, 2026, DBH received the recommended Contract from DHCS outlining the requirements for quality assurance, scope of work, program standards, budgeting, and accountability measures for local mental health programs, for the period of July 1, 2026, through June 30, 2029, with an initial deadline of April 30, 2026. A new deadline of May 31, 2026, was requested and approved to allow for the required review of the Contract by the County Behavioral Health Commission (BHC) and the approval by the Board of Supervisors (Board), pursuant to Welfare and Institutions Code sections 5604.2 and 5650(a), and Title 9, California Code of Regulations, Section 3310.
The BHC is appointed by the Board and provides recommendations on local mental health programs that will strengthen and improve services to county residents. The BHC completed their review of the Contract on April 16, 2026.
Upon Board approval, DBH will submit the Contract to DHCS allowing DBH to continue receiving funding to provide mental health, SUD, and supportive services through an extensive continuum of care of County-operated clinics, fee-for-service, and contracted DBH service providers.
DBH’s current contract with DHCS, Contract No. 21-743, was approved by the Board on October 5, 2021 (Item No. 18) and expires on June 30, 2026. Approval of this Contract would allow the County to continue meeting state requirements and avoid jeopardizing or delaying the receipt of funding necessary to operate behavioral health programs.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by Behavioral Health (Marianna Martinez, Administrative Supervisor II, 383-3940) on April 13, 2026; County Counsel (Kristina Robb, Deputy County Counsel, 387-5455) on April 16, 2026; and County Finance and Administration (Iliana Rodriguez, Administrative Analyst, 386-8392 and Joon Choo, Chief Administrative Analyst, 658-1812) on April 17, 2026.