To: Board of Supervisors
From: DHHS: Behavioral Health
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:title
Professional Services Agreement with Thomas Milam MD, Inc. Regarding the Provision of Outpatient Therapy Services to Children and Adults Suffering from Mental Illness in an Amount of $2,714,400 for the Period of July 1, 2026 through June 30, 2029
end
RECOMMENDATIONS:Recommendation
That the Board of Supervisors:
1. Approve, and authorize the Chair of the Board to execute, the attached professional services agreement with Thomas Milam MD, Inc. regarding the provision of outpatient therapy services to children and adults suffering from mental illness in an amount not to exceed Two Million Seven Hundred Fourteen Thousand Four Hundred Dollars ($2,714,400.00) for the period of July 1, 2026 through June 30, 2029; and
2. Authorize the Department of Health and Human Services - Behavioral Health Director, or a designee thereof, to execute any and all subsequent amendments to the attached professional services agreement with Thomas Milam MD, Inc., after review and approval by County Counsel, Risk Management and the County Administrative Office; and
3. Direct the Clerk of the Board to return one (1) fully executed electronic copy of the attached professional services agreement with Thomas Milam MD, Inc. to the Department of Health and Human Services - Contract Unit for further processing.
Body
STRATEGIC PLAN:
The recommended actions support the following areas of the Board of Supervisors’ Strategic Plan:
Area of Focus: Safe & Healthy Communities
Strategic Plan Category: 1002- Remove barriers to quality healthcare
DISCUSSION:
Despite the County of Humboldt’s ongoing recruitment efforts, the Department of Health and Human Services - Behavioral Health (“DHHS - Behavioral Health”) continues to experience significant difficulty in recruiting and retaining qualified licensed clinical staff to provide mandated mental health treatment services. Due to the shortage of available behavioral health treatment providers, the United States Department of Health and Human Services - Health Resources and Services Administration defines Humboldt County as a federally designated Mental Health Care Health Professional Shortage Area. However, this shortage in specialty behavioral health care providers is not endemic to Humboldt County or limited to the northern region of the state. The Substance Abuse and Mental Health Services Administration - Center for Integrated Health Solutions states that “rural communities have a chronic shortage of behavioral health providers and limited access to services.”
The attached professional services agreement with Thomas Milam MD, Inc., doing business as Iris Telehealth Medical Group, will allow eligible children and adults suffering from mental illness to receive certain outpatient therapy services for the period of July 1, 2026 through June 30, 2029.
Accordingly, DHHS - Behavioral Health recommends that the Board approve, and authorize the Chair of the Board to execute, the attached professional services agreement with Thomas Milam MD, Inc. regarding the provision of outpatient therapy services to children and adults suffering from mental illness for the period of July 1, 2026 through June 30, 2029. It is also recommended that the Board authorize the DHHS - Behavioral Health Director, or a designee thereof, to execute any and all subsequent amendments to the attached professional services agreement with Thomas Milam MD, Inc., after review and approval by County Counsel, Risk Management and the County Administrative Office, in order to avoid any unnecessary delays in the provision of needed outpatient therapy services.
SOURCE OF FUNDING:
Behavioral Health Fund (1170-424)
FINANCIAL IMPACT:
|
Expenditures (1170-424) |
FY 26-27 Projected* |
FY 27-28 Projected* |
FY 28-29 Projected* |
|
Budgeted Expenses |
$904,800.00 |
$904,800.00 |
$904,800.00 |
|
Total Expenditures |
$904,800.00 |
$904,800.00 |
$904,800.00 |
|
Funding Sources (1170-424) |
FY 26-27 Projected* |
FY 27-28 Projected* |
FY 28-29 Projected* |
|
State/Federal Funds |
$904,800.00 |
$904,800.00 |
$904,800.00 |
|
Total Funding Sources |
$904,800.00 |
$904,800.00 |
$904,800.00 |
*Projected amounts are estimates and are subject to change.
The attached professional services agreement with Thomas Milam MD, Inc. has a maximum amount payable of Two Million Seven Hundred Fourteen Thousand Four Hundred Dollars ($2,714,400.00) for the period of July 1, 2026 through June 30, 2029. In no event shall the maximum amount paid under this Agreement exceed Nine Hundred Four Thousand Eight Hundred Dollars ($904,800.00) per fiscal year for fiscal years 2026-2027 through 2028-2029. However, in the event local, state or federal funding is reduced or eliminated, the County of Humboldt may reduce the above-referenced maximum amount payable or terminate the attached professional services agreement with Thomas Milam MD, Inc. in its entirety.
Expenditure appropriations related to the attached professional services agreement with Thomas Milam MD, Inc. have been included in the proposed fiscal year 2026-2027 budget for DHHS - Behavioral Health Administration budget unit (1170-424). Funding for the attached professional services agreement with Thomas Milam MD, Inc. is available through the federal Medi-Cal and Medicare programs, state realignment for mental health managed care and early periodic screening, diagnosis and treatment and Mental Health Services Act revenues received by DHHS - Behavioral Health.
STAFFING IMPACT:
Approval of the attached professional services agreement with Thomas Milam MD, Inc. will not impact current staffing levels.
OTHER AGENCY INVOLVEMENT:
None
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may choose not to approve the attached professional services agreement with Thomas Milam MD, Inc. regarding the provision of outpatient therapy services to children and adults suffering from mental illness. However, this alternative is not recommended since it would cause a reduction in available services in DHHS - Behavioral Health’s children and adult outpatient clinics.
ATTACHMENTS:
1. Professional Services Agreement with Thomas Milam MD, Inc. Regarding the Provision of Outpatient Therapy Services to Children and Adults Suffering from Mental Illness
PREVIOUS ACTION/REFERRAL:
Meeting of: 12/19/2023
File No.: 23-1560