July 26, 2010

El Hogar Community Services Inc., vs. County of Sacramento

On July 26, 2010, provider organizations that contracted with the Sacramento County Department of Behavioral Health to provide outpatient behavioral health services were denied a preliminary injunction. The lawsuit was filed to force the county to revise its planned changes to the outpatient mental health system. The plaintiffs alleged the county's plan violated state welfare codes, which require the counties to use available private and private non-profit mental health resources and facilities prior to developing new county-operated resources/facilities, when those private and private non-profit services are at least of equal quality and cost to county operated resources. On July 20, 2010, the California Superior Court initially said the plaintiffs were likely to prevail and that the county had not demonstrated compliance with the welfare code requirements. However, on July 26, after further review, the court opted not to issue the injunction.