REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 22, 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. 4 to Contract No. 23-811 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, and Mental Health Treatment to California Work Opportunities and Responsibility to Kids programs, removing the scope of work for General Mental Health Services, decreasing the total contract amount by $1,640,000, from $40,902,500 to $39,262,500, with no change to the 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 decrease of $1,640,000 from the contract for the removal of the General Mental Health Services (GMH) scope of work was funded through a combination of Medi-Cal Federal Financial Participation, Mental Health Services Act funds, and Behavioral Health Services Act funds. Adequate appropriation and revenue have been included in the Department of Behavioral Health’s (DBH) 2026-27 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 and Mental Health Treatment (MHT) to California Work Opportunity and Responsibility to Kids (CalWORKs) recipients since 1999, and Full Service Partnership (FSP) services since 2013.
GMH outpatient Specialty Mental Health Services (SMHS) are provided 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 No. 21-073. 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. These services are designed to assist clients in achieving self-sufficiency and shall include assessments, evaluations, individual and group therapy, rehabilitation, crisis intervention, and case management. Since July 1, 2023, Valley Star Behavioral Health, Inc. (VSBH) has served 61 unduplicated clients. VSBH will provide GMH services to:
• Approximately 40 clients through September 30, 2026
• An estimated cost of $3,750 per client
CalWORKs recipients experiencing mental health and/or SUD issues are referred by the Transitional Assistance Department to DBH for GMH in order to receive MHT. 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.
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.
C-FSP also provides social support services, such as food, clothing, housewares, shelter, and employment education, using an open format that allows a “Whatever it Takes” approach to help the client reintegrate into their community.
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.
In addition, DBH provides support for Mental Health Court (MHC), which provides specialized mental health services to individuals involved in the criminal justice system. VSBH 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.
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 VSBH 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, VSBH, 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 VSBH to expand its operations provided a seamless transition and maintained a high standard of continuity of care.
On March 26, 2024 (Item No. 27), the Board approved Amendment No. 1 to Contract No. 23-811 with VSBH, adding the provision of FSP, C-FSP in the East Valley and West Valley, GMH services, and GMH services and MHT 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.
On May 19, 2026 (Item No. 27), the Board approved Amendment No. 2 to Contract No. 23-811 with VSBH, updating the scope of work for C-FSP and GMH, 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.
On June 29, 2026, the Acting Director of DBH approved Amendment No. 3 to Contract No. 23-811, via a delegated authority, with VSBH to align with DHCS Payment Reform, with no change to the total contract amount of $40,902,500, and with no change to the total contract period of July 1, 2023 through June 30, 2028.
Approval of Amendment No. 4 to Contract No. 23-811 with VSBH will remove GMH services and reduce the total contract amount by $1,640,000, from $40,902,500 to $39,262,500, with no change to the total contract period of July 1, 2023 through June 30, 2028. The $1,640,000 reduction represents the remaining GMH allocation for the period October 1, 2026 through June 30, 2028.
DBH has completed a procurement for GMH services, and the resulting GMH contracts are being presented to the Board for approval in a related Board Agenda Item on September 22, 2026. The new GMH contracts will provide GMH services currently included in Contract No. 23-811. Amendment No. 4 will remove GMH services from Contract No. 23-811 to avoid having overlapping contracts for the same services.
Performance measures for FSP, MHC, and GMH and MHT services to CalWORKs service contracts focus on tracking service quality, timeliness, accessibility, and outcomes to ensure providers meet established standards. Contractors are required to submit regular reporting such as monthly service logs, outcome data, fiscal reports, and compliance documentation, which allows the department to monitor progress and identify trends or concerns. Accountability mechanisms, including performance audits, contract monitoring meetings, site visits, and corrective action plans, help ensure that services are delivered as intended and align with program goals. Together, these structures promote transparency, support continuous improvement, and ensure that community members receive high-quality, effective behavioral health services.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by Behavioral Health (Diana Barajas, Administrative Supervisor I, 388-0862) on August 20, 2026; County Counsel (Dawn Martin, Deputy County Counsel, 387-5455) on August 25, 2026; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on August 24, 2026; and County Finance and Administration (Iliana Rodriguez, Administrative Analyst, 386-8392) on September 4, 2026.