Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Colleen Chawla, Chief, San Mateo County Health
Jei Africa, Director, Behavioral Health and Recovery Services
Subject: Agreement with S.T.A.R.S., Inc. dba Stars Community Services for Mental Health Rehabilitation Center Services
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with S.T.A.R.S., Inc. dba Stars Community Services for mental health rehabilitation center services for the term of July 1, 2026 through June 30, 2028, in an amount not to exceed $11,407,597.
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BACKGROUND:
Behavioral Health and Recovery Services (BHRS) has contracted with S.T.A.R.S., Inc. dba Stars Community Services (STARS) since October 1, 2023 for the provision of Mental Health Rehabilitation Center (MHRC) services. In May 2022, BHRS released a Request for Proposals for the provision of MHRC services at the rebuilt Cordilleras Health and Healing Campus. STARS is one of four agencies selected to provide MHRC services.
STARS has over 36 years of experience designing, implementing, and operating acute inpatient facilities and other programs providing residential, rehabilitation, and crisis services. It operates residential and community-based mental health services in 10 other California counties, including Santa Clara, where it has been a certified Medi-Cal provider since 2000. STARS has experience operating Psychiatric Health Facilities and Institutions of Mental Diseases, as well as opening and operating an MHRC. Agreements with the other three MHRC providers will be submitted to this Board separately.
DISCUSSION:
STARS will operate an MHRC, providing Medi-Cal billable psychiatric treatment services and room and board services in a locked facility setting for up to 16 seriously mentally ill County consumers. Services will be primarily provided to consumers who may be registered sex offenders or have histories of violence. BHRS will refer consumers to STARS.
The resolution contains the County’s standard provisions allowing amendments of the County’s fiscal obligation by a maximum of $25,000 (in aggregate).
The agreement and resolution have been reviewed and approved by the County Attorney as to form.
It is anticipated that 85% of consumers will not be discharged to an acute psychiatric level of care within 15 days of admission.
PERFORMANCE MEASURE:
|
Measure |
FY 2025-26 Estimated |
FY 2026-27 Projected |
|
Percentage of consumers not discharged to an acute psychiatric level of care within 15 days of admission |
85% 16 clients |
85% 20 clients |
COMMUNITY IMPACT:
This agreement will provide critical support to an underserved population of individuals with severe mental illness who require a secured, subacute rehabilitation setting to achieve stabilization and progress in their recovery. STARS has demonstrated a strong commitment to serving individuals with complex behavioral health needs and providing evidence‑based, recovery‑oriented treatment within a secure environment. Services provided through this agreement will enhance the County’s continuum of care, improve client outcomes, and support broader system goals related to safety, recovery, and responsible stewardship of public resources.
FISCAL IMPACT:
The term of the agreement is July 1, 2026 through June 30, 2028. The amount of the agreement is not to exceed $11,407,597 for the two-year term. Funds in the amount of $5,612,646 are included in the BHRS FY 2026-27 Recommended Budget. Of that amount, Medi-Cal Reimbursement will fund $1,558,817; 2011 Realignment, including the match for Medi-Cal services, will fund $1,558,817; Other Sources will fund $2,014,130; and the Net County Cost is $480,882. Similar arrangements will be made for FY 2027-28.
Attachment: RFP Matrix