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Board approves contract to sustain CHOC pediatric psychiatric unit after state reimbursement boost
Summary
The board approved an amendment enabling continued inpatient psychiatric services for children at CHOC (now Rady Children's Orange County) after state-level reimbursement changes reduced the county’s cost exposure, a result staff and CHOC representatives credited to coordinated advocacy.
The board unanimously approved a contract amendment on April 28 that secures a more sustainable reimbursement rate for Children’s Hospital of Orange County’s pediatric inpatient psychiatric unit, the county’s only facility treating children under age 12 for acute psychiatric conditions.
Jenna Jensen, vice president for advocacy and public policy with Rady Children's (the merged entity that includes CHOC), told the board recent state-level discussions produced improved reimbursement for the hospital’s 18-bed unit without increasing county costs. "This does not result in additional financial burden for the county," she said, and thanked county staff for working with the hospital and the state.
Dr. Veronica Kelly, director of the Orange County Health Care Agency, described county efforts to engage the state Department of Health Care Services and to maximize federal and state medical reimbursement. Supervisor Nguyen said the outcome reduces county exposure while preserving critical services for young children in crisis; she described the agreement as a "victory" for the county and families.
Board members noted the unit’s role in providing nearly 3,000 acute bed days last fiscal year and the importance of sustaining capacity for younger children who have nowhere else to turn. The board moved and approved the contract amendment without opposition and asked HCA to continue pursuing sustainable financing paths for specialty behavioral-health services.
