Deschutes County outlines plan for 15‑bed child psychiatric residential treatment facility in Redmond

Holly Harris, Deschutes County health services director, updated the Board of Commissioners on a planned 15‑bed child psychiatric residential treatment services (PRTS) facility in Redmond, saying the county has identified land, a provider and a funding package and is moving the project through contract and reporting requirements.

“We have a provider and we have land, and so we can really give a robust update on kind of, where we are in the process,” Harris said, noting she has worked on the project for more than a decade.

Harris described the model as short‑term, secure, on‑site psychiatric care for youth (roughly ages 12–17) with 24‑hour support, medication management, group and individual therapy, family therapy and an aim to reintegrate youth into outpatient community care. She said the child facility will sit behind an adult secure residential treatment facility on the same property near Saint Charles in Redmond, with separate operations for safety.

County staff named Jackson House as the parent company, BHOR Redmond LLC as the landlord and Headwaters Behavioral Health as the proposed tenant and operator. Harris said the county will be responsible for the dollars it provides but will not own or operate the building; the county’s role will be contract oversight and reporting.

Harris outlined a multi‑source funding package that includes a $3,000,000 direct allocation from the Oregon Health Authority for start‑up and construction support; $3,100,000 allocated through the state legislature via the Department of Administrative Services specifically for construction; a $1,304,000 congressionally directed request earmarked for furnishings, fixtures and equipment; $750,000 from the Central Oregon Health Council toward design and permitting costs; and $75,000 from PacificSource to Jackson House for upfront costs. She said each of the major funding sources carries contractual conditions and separate reporting requirements.

Harris said construction is expected to begin around July 2026 with an anticipated 12‑month build and a target for construction completion around July 2027. Because Medicaid billing requires an initial operational period to demonstrate compliance, Harris said the facility will operate for several months on private insurance and other payers before billing Medicaid, meaning Medicaid‑reimbursed services will likely begin later in 2027.

The county will require a declaration of restricted covenant tied to funding that obligates the facility to operate as a PRTS for 20 years, Harris said, “so we are working through all of those” contract details with legal and finance staff.

Commissioners asked about procurement and local contracting. County staff (Kim) explained Jackson House is a subawardee under the grants and that, because of the grant agreements, the county did not run a competitive solicitation for the operator under that funding stream. Commissioners and Harris also discussed workforce risks: Harris said recruiting child psychiatrists and sufficient qualified staff is a central challenge and that the county will consider capacity payments and other mechanisms to ensure access to beds for local youth.

Harris closed by saying staff will return with more technical briefings and that legal, finance and facilities teams remain engaged in finalizing contracts and reporting obligations. Commissioners thanked staff and signaled continued oversight as the project proceeds.

Next steps: staff will continue contract negotiations, finalize reporting and compliance steps tied to each funding source, and schedule follow‑up briefings with subject‑matter experts as needed.