Newark Unified proposes in‑house school‑based billing to expand student mental‑health services

Assistant superintendent (Miss Costa) told the board the state’s Children and Youth Behavioral Health Initiative gives Newark Unified an opportunity to bill private insurance and other payers directly for non‑medical school‑based behavioral health services. She said staff have identified 14 district employees already trained to bill and proposed a phased expansion to about 30 billers, overseen by a single administrative lead who would coordinate training and compliance. “We can collect upwards of over 500,000 over the next three years,” Miss Costa said, describing that amount as a combination of payment for services and retained administrative fees.

Costa said moving billing in‑house would let the district receive and allocate funds back to schools rather than directing those payments to outside contractor organizations. She listed likely billable staff — counselors, psychologists, parent partners, school nurses and some contracted Tier‑2 providers — and said the district anticipates minimal net new accounting headcount initially, with a single clerical or administrative position to oversee billing workflow.

Board members pressed staff on safeguards and capacity. Member Block asked who would sit on the committee that allocates any revenue; Costa proposed mirroring the district’s existing medical‑billing committee (administrators, teachers, special‑education representation) and adding parent representation. Member Hill asked whether bringing billing in‑house would require more accounting staff; Costa said business services would continue handling accounting and that the model should be cost‑neutral because administrative fees are built into the state fee schedule.

Superintendent Vakar and Dr. Walker said the district plans phased implementation, including additional training and county‑provided cohort support. Staff reported roughly 790 students were receiving services through one program as of Dec. 31, which board members said should inform staffing and revenue projections.

The board did not take a final vote on a policy change that night. Members asked staff to return with a detailed staffing plan, clearer cost estimates and bargaining‑unit implications for any new clerical position before authorizing broad in‑house billing.

The next procedural step: staff will provide a written implementation plan (staffing, oversight committee charter, back‑billing rules, and estimated timeline) for board review before the district begins billing directly.