State Hospitals

Growing capacity for better care

State Hospitals Program

In April 2012 at the CalMHSA Annual Strategic Planning Session, the Board directed staff to work with the California Behavioral Health Directors Association (CBHDA) to explore the feasibility of the JPA acting on behalf of counties to develop an annual purchase agreement for statewide utilization of state hospitals beds with the Department of State Hospitals (DSH), as provided under sections 4330 et seq. of WIC. Counties were collectively paying between $90-130 million for the procurement of state hospital beds and expressed their angst regarding the non-negotiable annual rate increases of 22% imposed by the DSH. On behalf of the counties, CalMHSA successfully negotiated a new purchase agreement with DSH, saving the counties millions of dollars each year.

Alternatives to State Hospitals

During the negotiation process, it was determined the largest issue at the state hospitals was, and continues to be, lack of capacity. Therefore, the State Hospital Committee requested approval by the CalMHSA Board to explore inpatient alternatives to placing individuals in DSH facilities, which would require a national solicitation of interest for qualified providers. Multiple site options for a facility have been explored and a viable site will be pursued with the selected provider.

  • The selected provider will be required to develop a facility and provide treatment services that are the core to a patient’s stabilization and recovery.
  • The staff are to provide highly structured treatment for mental rehabilitation and re-socialization in preparation for an open treatment setting or community placement.
  • Services will be provided statewide in an effort support the needs of California’s diverse geographic regions.
  • The selected provider will be required to comply with all applicable federal and state laws, licensing regulations to provide acute/ long term inpatient and skilled nursing services in accordance with generally accepted practices and prevailing standards in the professional community, in accordance with Welfare & Institutions Code (WIC) Section 4100 et eq.