This report is a description of components of an agreement should one be developed between the Department of Behavioral Health and Developmental Services (DBHDS) and Children’s Hospital of The King’s Daughters (CHKD). CHKD plans to expand its capacity to provide mental health services to Virginia’s youth through a 60-bed expansion and increased outpatient service capacity. This expansion would support the development of the largest community based mental health center for youth in the Commonwealth and through collaboration with DBHDS, is an opportunity within the community to help divert admissions from the Commonwealth Center for Children and Adolescents (CCCA). CHKD and DBHDS identified priority target populations that CCCA serves to inform the potential structure of an agreement. Ultimately, an agreement as described below, used to contract beds for children and adolescents who would otherwise be admitted to CCCA, and would require a financial investment on the part of the Commonwealth and an overall beneficial step for children’s mental health.