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County to assume oversight of Be Well Orange campus after Mind OC deficiencies; HCA signs new provider contracts
Summary
Following an audit that found monitoring and billing shortfalls, the county's Health Care Agency will take over on-site oversight at the Be Well Orange campus, transfer provider contracts to county master agreements (Exodus Recovery and HealthRight 360), and pursue retroactive Medi-Cal billing.
The board approved Health Care Agency (HCA) requests to assume operational oversight of the Be Well Orange campus and to execute contracts with Exodus Recovery (mental health/crisis services) and HealthRight 360 (substance use disorder services). Dr. Veronica Kelly, HCA director, said the change is intended to sustain the campus's 220 beds for crisis stabilization and residential services after Mind OC — the prior oversight partner — failed to provide required monitoring, charting and billing controls.
"We delegated that to Mind OC. They were unable to provide the oversight, the monitoring, or the education," Kelly said, describing auditing findings and the decision to terminate Mind OC’s monitoring arrangement. She said the county expects to recover about $1 million in retroactive billings that were previously not submitted, and that the county's direct oversight will make operations more efficient and allow fuller federal reimbursement.
Supervisors pressed for clarity on the campus lease/sublease and property-management fees. Real estate staff said Mind OC holds the long-term leasehold and subleases space to providers; county staff said they are reviewing subleases and will adjust rent and property-management terms to reflect Mind OC’s reduced operational role. "We're reviewing those subleases to adjust them," a county real-estate representative said.
Board members asked for a financial breakdown of rents, county payments to Mind OC, and the scale of projected savings; HCA and real estate staff committed to provide the requested information. Supervisors also asked about staffing impacts: HCA said Exodus and HealthRight staff would remain at the site under the county-managed contracts and that the county seeks to retain existing employees where possible.
The board approved the contract changes unanimously and directed staff to report back with details on subleases, rent accounting, and the timeline for billing recovery and transition tasks.
