Health Services secures psychiatric bed contract and Prop 36 program manager funding

Jul 21, 2026

The board approved a contract with Butte County to obtain psychiatric inpatient bed capacity (not to exceed $50,000) and also authorized a contract with Sierra Health Foundation to manage Proposition 36 program funding and services ($330,282.54) to build local treatment capacity and reporting.

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Michelle Schmidt, interim executive director of the Health Services Agency, presented two agreements. First, staff recommended entering a contract with Butte County to secure psychiatric inpatient bed availability to reduce emergency room holds and speed placements; the agreement’s maximum compensation is not to exceed $50,000 and the board authorized the interim executive director to sign it. Schmidt said the county‑owned facility offers lower prices than private vendors and would make transfers quicker for patients under behavioral health holds.

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