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County ratifies $0 fiscal-year mental health performance contract; managers flag billing catch-up that will boost Medi‑Cal revenue this year
Summary
Health and Human Services presented the FY25–26 specialty mental health performance contract (a $0 agreement that sets program requirements) and said a billing transition to fee‑for‑service will cause an anomalous $2 million Medi‑Cal revenue increase this year as past services are billed.
Anna Scott, Behavioral Health programs lead in Inyo County Health and Human Services, presented the county’s FY25–26 specialty mental health performance contract to the board on Aug. 19 and asked for retroactive ratification because the contract arrived after the fiscal year began.
Scott said the agreement is a $0 state contract that sets the requirements counties must follow to operate specialty mental health services under Medi‑Cal (a system that carves specialty mental health care out of managed Medi‑Cal). She told the board that the county recently transitioned from a cost‑reporting system to fee‑for‑service Medi‑Cal billing (starting Jan. 2024), and that implementation of a new electronic health record and billing system delayed some billing. As a result, Scott said the county expects to bill and recognize revenue this fiscal year that pertains to prior services and that she projects roughly $2 million in Medi‑Cal revenue for the current year — a one‑time anomaly tied to catch‑up billing.
Scott said the contract establishes quality‑assurance, compliance and reporting expectations for specialty mental health programs and noted the county will bring a separate, nearly identical agreement for Drug Medi‑Cal services. She also explained that the Behavioral Health Services Act will lead to a more integrated planning approach over the next year — integrating community health needs, behavioral health assessments and future managed Medi‑Cal planning, which could consolidate multiple funding streams and contracts in the future.
Action taken: The board ratified the performance contract (a $0 agreement) by vote. Scott said she will correct outdated budget estimates in the agenda materials and continue to coordinate budget updates with county fiscal staff.
