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: Assignment and Assumption Agreement with 7th Avenue Center, LLC for Psychiatric Care Services
RECOMMENDATION:
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Adopt a resolution authorizing an Assignment and Assumption agreement with 7th Avenue Center, LLC for locked psychiatric care services, for the term of July 1, 2023 through June 30, 2026, in an amount not to exceed $5,632,787.
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BACKGROUND:
Behavioral Health and Recovery Services (BHRS) has an agreement with 7th Avenue Center, LLC (7th Avenue) for locked psychiatric Mental Health Rehabilitation Center (MHRC) services. The parent company for 7th Avenue is Front Street Administrative Services, LLC (Front Street). This agreement is for the provision of 18 beds for San Mateo County residents with complex behavioral health needs, including clients coming directly from state hospital placements, and is for the term July 1, 2023 through June 30, 2026. This provider was selected under the B-1 Administrative Memo waiver exception for Housing Services and Related Supports. BHRS has contracted with 7th Avenue for services at their facility since 2002.
DISCUSSION:
On July 31, 2025, Front Street informed BHRS that it had contracted with PacifiCare Health Management, LLC (PacifiCare) for the sale of its mental health treatment facilities, including 7th Avenue. PacifiCare was to assume the provision of services under the terms of the current agreement with 7th Avenue. In order to do so, PacifiCare had to obtain appropriate licensure from the State.
On August 26, 2025, BHRS executed an executive assignment letter to 7th Avenue, agreeing that 7th Avenue could assign to PacifiCare the management of services obligated by our agreement, and that such services would continue to be provided under the 7th Avenue State licen...
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