The McLeod County Board approved two Health & Human Services contract items on routine votes Tuesday, authorizing a youth crisis bed-day contract with Woodland Centers and a contract amendment for Canvas Health to align with an increased state grant.

County Health and Human Services staff presented a contract to cover adult residential crisis services and youth residential crisis services for Jan. 1–Dec. 31, 2026; youth out-of-county bed days without a county member contract would cost $1,800 under the proposed contract and $2,322 per bed day if the county declines a contract. The board also approved an amendment to the county’s Canvas Health mobile crisis services agreement so the contractor’s payment provisions match a larger grant awarded by the Minnesota Department of Human Services Behavioral Health Administration.

County staff said McLeod is not a Woodland Centers member county and historically has used other, lower-cost providers when possible but wants the contract in place to avoid paying higher out-of-contract rates when youth beds are needed. Staff reported three children have used Woodland Centers so far this year for a total of 14 days and no adults had used Woodland Centers year to date.

County officials noted that, unlike adult crisis services reimbursed by Medicaid, youth crisis bed days are not covered by Medicaid or other insurers and therefore the county is the only payer for those bed days.

On the Canvas Health amendment, staff said the county’s originally planned allocation in the grant agreement was lower; the Minnesota Department of Human Services awarded a larger allocation (described in the packet as $6,610,988 for the grant period) and a contract amendment is needed so Canvas Health’s contract reflects the correct amount. Staff told the board Canvas is already providing telehealth crisis services in the county and has placed a supervisor to begin Oct. 20.

Both measures passed by voice vote. The Woodland Centers item was moved by Commissioner Krueger and seconded by Commissioner Schmalls; the Canvas Health amendment was seconded by Commissioner Schmaltz and both motions carried.

County staff and commissioners emphasized ongoing bed shortages regionally and the limited reimbursement options for youth crisis care, and said the contract and amendment are intended to preserve access while containing costs where possible.