REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 19, 2026
FROM
JOSHUA DUGAS, Acting Director, Department of Behavioral Health
SUBJECT
Title
Amendment to Contract with Valley Star Behavioral Health, Inc. for Adult Full Service Partnership Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Contract No. 23-811, effective July 1, 2026, with Valley Star Behavioral Health, Inc., for the provision of mental health and support services within the Adult Full Service Partnership, Joshua Tree Mental Health Court, General Mental Health, and General Mental Health to California Work Opportunities and Responsibility to Kids programs, updating scope of work for Adult Full Service Partnership and General Mental Health Services, increasing the total contract amount by $17,032,000, from $23,870,500 to $40,902,500, and extending the contract an additional two years, for a total contract period of July 1, 2023 through June 30, 2028.
(Presenter: Joshua Dugas, Acting Director 252-5142)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
Improve County Government Operations.
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 Discretionary General Funding (Net County Cost). The recommended increase of $17,032,000 for the provision of Full Service Partnership (FSP) services ($14,192,000 or 83%), Joshua Tree Mental Health Court (MHC) services ($600,000 or 4%), General Mental Health (GMH) services ($1,790,000 or 10%), and GMH to California Work Opportunity and Responsibility to Kids (CalWORKs) recipients ($450,000 or 3%) by Valley Star Behavioral Health, Inc. (Valley Star) will be funded by Federal Financial Participation Medi-Cal and Behavioral Health Services Act funds. Adequate appropriation and revenue have been included in the Department of Behavioral Health’s (DBH) 2025-26 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
DBH is responsible for providing mental health and substance use disorder (SUD) services to county residents experiencing severe mental illness and/or SUD. DBH has utilized contracted providers for GMH services since 1996, GMH services to CalWORKs recipients since 1999, and FSP services since 2013.
GMH outpatient Specialty Mental Health Services (SMHS) are delivered to indigent or full-scope Medi-Cal eligible children, youth, and adults who meet medical necessity for SMHS, as outlined in the California Department of Health Care Services (DHCS) Behavioral Health Information Notice No. 21-073. The individuals served are experiencing serious mental and emotional difficulties, resulting in significant impairment in daily living activities and functioning in one or more categories, such as health, self-care, housing, occupation, education, legal, money management, and/or interpersonal/social. Services are designed to assist clients in achieving self-sufficiency and shall include assessments, evaluations, individual group therapy, rehabilitation, crisis intervention, and case management. Since July 1, 2023, Valley Star has served 61 unduplicated clients. DBH anticipates that Valley Star will provide GMH services through the end of the contract to:
• Approximately 250 clients annually, and
• An estimated cost of $3,580 per client.
CalWORKs recipients experiencing mental health and/or SUD issues are referred by the Transitional Assistance Department for GMH in order to receive mental health treatment. Referred CalWORKs recipients are assessed and evaluated to determine the level of mental health services needed to remove barriers to employment and/or to provide assistance in applying for Social Security Income benefits when mental illness makes them unemployable. Since July 1, 2023, Valley Star has served 62 unduplicated clients. DBH anticipates that Valley Star will provide GMH services through the end of the contract to:
• Approximately 59 CalWORKs recipients, and
• An estimated cost of $3,813 per client.
FSP support includes two programs: Community Full Service Partnership (C-FSP) and Permanent Supportive Housing Full Service Partnership (PSH-FSP). C-FSP services are a collaborative relationship between the contractor and client, and when appropriate, the client’s family. The contractor plans and provides the full spectrum of community services, which includes behavioral and non-behavioral health services, to support the client in achieving identified goals. C-FSP provides clients with crisis intervention/stabilization, family education, peer support, and programs that treat both SUDs and mental health conditions in an integrated fashion. These services provide clients with access to an interdisciplinary team of behavioral health professionals and peer advocates 24 hours, seven days per week.
C-FSP also provides social support services, such as food, clothing, housewares, shelter, employment education using an open format that allows a “Whatever it Takes” approach to help the client reintegrate into their community. The goal of the program is to help reduce the client’s need for emergency services for behavioral health concerns, homelessness, and criminal justice involvement. Since July 1, 2023, Valley Star has served 624 unduplicated clients. DBH anticipates that Valley Star will provide C-FSP through the end of the contract to:
• Approximately 295 clients annually, and
• An estimated cost of $18,152 per client.
PSH-FSP provides housing assistance to qualifying clients who receive C-FSP. PSH-FSP is an evidence-based housing intervention that combines ongoing rental assistance with supportive services such as physical and mental health care for the chronically unhoused. Since July 1, 2023, Valley Star has served 68 unduplicated clients. DBH anticipates that Valley Star will provide PSH-FSP through the end of the contract to:
• Approximately 75 clients annually, and
• An estimated cost of $23,213 per client.
In addition, DBH provides support for MHC which provides specialized mental health services to individuals involved in the criminal justice system. Valley Star provides a full spectrum of community mental health services, including assessment, diagnosis, individual and group therapy, case management, and more, to assist the client in achieving identified goals. Since July 1, 2023, Valley Star has served 624 unduplicated clients. DBH anticipates that Valley Star will provide services through the Joshua Tree Mental Health Court through the end of the contract to:
• Approximately 25 clients annually, and
• An estimated cost of $12,000 per client.
On July 25, 2023 (Item No. 21), as a result of a formal procurement, the Board of Supervisors (Board) approved Contract No. 23-811 with Valley Star in the amount of $9,675,000, to provide FSP in the High and East Desert for the period of July 1, 2023 through June 30, 2026.
On November 3, 2023, Mental Health Systems, Inc. dba TURN Behavioral Health Services (MHS, Inc.), notified DBH that, effective December 31, 2023, MHS, Inc. would no longer provide C-FSP to the East Valley and West Valley regions. As a result, Valley Star, the only other contracted provider of C-FSP, expressed willingness and ability to expand their current contract to include the areas previously covered by MHS, Inc. This commitment by Valley Star to expand its current operations provided a seamless transition and maintains a high standard of continuity of care.
On March 26, 2024 (Item No. 27), the Board approved Amendment No. 1 to the Contract No. 23-811 with Valley Star, adding the provision of FSP, C-FSP in the East Valley and West Valley, GMH services and GMH to CalWORKs recipients in the East Desert, and increasing the total contract amount by $14,195,500, from $9,675,000 to $23,870,500, with no change to the contract period of July 1, 2023 through June 30, 2026.
DBH has implemented mechanisms to regularly review: 1) client service data and progress, conduct site visits and annual monitoring to ensure performance and compliance standards of the contract(s) are met; 2) applicable claims data and claims for reimbursement to ensure fidelity and accuracy of service billing and optimization of Medi-Cal reimbursement in alignment with contract terms and DHCS billing requirements; and 3) provider invoices administratively and programmatically to ensure client and/or bed counts are accurate prior to payment processing.
Approval of Amendment No. 2 (Amendment) to Contract No. 23-811 with Valley Star will allow continued GMH services and GMH to CalWORKs clients. This Amendment also updates the scope of work for Adult FSP in order to meet the DHCS requirements for FSP programs to utilize the evidence-based practice Assertive Community Treatment (ACT) for individuals who need the highest level of care in an outpatient setting. ACT requires a multidisciplinary, team-based, field-based approach with multiple contacts per week, and the scope of work has been revised to reflect these standards. Approval of this Amendment will increase the total contract amount by $17,032,000, from $23,870,500 to $40,902,500, and extend the contract an additional two years for a total contract period of July 1, 2023 through June 30, 2028.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by Behavioral Health (Diana Barajas, Administrative Supervisor I, 388-0862) on April 8, 2026; County Counsel (Kristina Robb, Deputy County Counsel, 387-5455) on April 14, 2026; and County Finance and Administration (Iliana Rodriguez, Administrative Analyst, 386-8392) on May 4, 2026.