Committee OKs forwarding Helios contract extension to keep long-term psychiatric beds available

The Budget and Finance Committee voted Jan. 5 to forward to the full Board a resolution approving a second amendment to the Department of Public Health contract with Helios Healthcare LLC to expand funding by roughly $18.2 million, raising the not-to-exceed amount to about $27.9 million and extending the agreement through June 30, 2028. DPH requested retroactive approval for the extension.

Michelle Ruggles (DPH) explained Helios provides locked, residential psychiatric skilled nursing care for clients with serious mental illness who also require co-occurring medical care. Those placements help free capacity in acute psychiatric inpatient units. Kelly Hiramoto (DPH) said Helios is one of the few facilities able to manage complex medical and behavioral health needs; other providers and systems (Crestwood, Medical Hill, Garfield) provide additional bed capacity but access is negotiated across counties.

During questioning supervisors sought counts of locked beds available to San Francisco; DPH gave a total locked-bed universe of 367 beds and 167 skilled nursing locked beds (the latter for co-occurring medical needs). DPH said the shortfall identified by prior bed studies was partially addressed with placements at Crestwood in Santa Barbara, and that negotiations are ongoing to secure additional beds for the city.

Nick Menard (BLA) summarized the amendment as reflecting billing for about 37 mental-health beds at the Ottawa Psychiatric Skilled Nursing Facility in Sunnyvale and recommended approval. The committee accepted DPH's amendment adding retroactive language and forwarded the item to the full Board with a positive recommendation (roll call: 3 ayes).