Shasta County staff are recommending a retroactive agreement with Crestwood Behavioral Health Inc. authorizing up to $10 million for residential mental-health treatment services through June 30, 2029. The proposed term runs from July 1, 2026, through June 30, 2029, according to the county staff report. The agreement would operate on a fee-for-service basis.
The report says as many as 29 Shasta County clients are currently placed in Crestwood centers. Crestwood services include 24-hour residential treatment and rehabilitation for adults with severe and persistent mental illness, as well as short-term psychiatric stabilization services. Facilities are available in Redding, Eureka, Sacramento and other California locations, the report says.
County staff say the placements offer an alternative to state hospitals and can help clients transition toward board-and-care or other community settings. Rejecting the agreement could require the county to seek alternate placements, according to the report.
The staff report says the contract would have no additional General Fund impact. Funding is identified as 50% Medi-Cal, 30% other third-party payers and 20% county match, largely through Realignment dollars. Expenditures would come from the county’s Mental Health Budget, or BU 410, in fund 0080.
The agreement was listed for the Shasta County Board of Supervisors’ Sept. 15, 2026, meeting. The staff report says a simple majority vote would be required, but it does not record the board’s final action. The report also does not specify the number of clients at each facility or the per-client rate schedule.
