Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  25-000560

 

MEETING DATE:

04/14/26

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

3, 4

SUBMITTING Agency/Department:

Health Care Agency   (Approved)

Department contact person(s):

Veronica Kelley (714) 834-7024 

 

 

Ian Kemmer (714) 834-2160

 

 

Subject:  Approve Contracts for Adult Crisis Residential Services North and South Regions

 

     ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost:  N/A

Annual Cost: FY 2026-27 $3,271,083
FY 2027-28 $3,271,083
FY 2028-29 $3,271,083

 

 

 

    Staffing Impact:

No

# of Positions:           

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:    State: 50% (Behavioral Health Services Act), Fees/Other: 50% (Medi-Cal Federal Financial Participation)

County Audit in last 3 years: No

   Levine Act Review Completed: Yes

 

    Prior Board Action:         N/A

 

RECOMMENDED ACTION(S):

 

 

1.

Approve the Contract with Telecare Corporation for provision of Adult Crisis Residential Services North Region, for the term of July 1, 2026, through June 30, 2029, for an amount not to exceed $5,042,028, renewable for one additional two-year term.

 

2.

Approve the Contract with Telecare Corporation for provision of Adult Crisis Residential Services South Region, for the term of July 1, 2026, through June 30, 2029, for an amount not to exceed $4,771,221, renewable for one additional two-year term.

 

3.

Pursuant to Contract Policy Manual Section 3.3-113, authorize the County Procurement Officer  or Deputized designee to exercise a contingency contract cost increase, not to exceed a total of 10 percent of the contract amount for the first year of the contracts, for the entire term of the Contracts, including renewals, and within the scope of work set forth in the contracts. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer.

 

4.

Authorize the County Procurement Officer or Deputized designee to execute the Contracts with Telecare Corporation as referenced in the Recommended Actions above.

 

 

 

 

SUMMARY:

 

Approval of the selection of and Contracts with Telecare Corporation for provision of Adult Crisis Residential Services will allow continued short-term crisis residential programs for adults experiencing a behavioral health crisis and are at risk of psychiatric hospitalization.

 

 

 

 

BACKGROUND INFORMATION:

 

On December 8, 2025, the Health Care Agency (HCA) released a Request for Proposals (RFP) through the County of Orange’s (County) online bidding system to solicit proposals from qualified providers to provide Adult Crisis Residential Programs (CRP) North and South Region. The RFP stated the County’s intent to award two contracts, one for each region, to the qualified proponent whose proposal was determined to be the most responsive to the requirements of the RFP. HCA received two proposals by the deadline of January 15, 2026. A third proposal was not submitted by required timelines and was deemed unresponsive. An evaluation panel recommended the award of the contracts to Telecare Corporation (Telecare).

 

Proposal Evaluation Process

A standard evaluation panel of five members was recruited to evaluate proposals received. The committee was comprised of five subject matter experts: two HCA employees, one Social Services Agency employee, and two external public members.  Evaluation panel members independently rated the proposals.

 

For the North and South Region, the evaluation panel recommended award of contracts to Telecare Corporation. No protests were received.

 

Proponent

Average Score

Telecare Corporation

945.7

CRT Programs Inc.

567.3

 

HCA staff have conducted due diligence on Telecare. Reference checks were satisfactory and completed with San Joaquin County Behavioral Health, Alameda County Health, Behavioral Health Department, and Los Angeles County Department of Mental Health regarding service contracts related to Adult CRPs.

 

Scope of Services 

CRPs provide short-term, 24-hour crisis residential services for adults experiencing behavioral health crises who may otherwise require psychiatric hospitalization. These voluntary programs offer safe, home-like settings designed to stabilize individuals, reduce acute psychiatric symptoms and support successful community reintegration.

 

CRP North, also known as the “Silver Treehouse,” serves Orange County residents age 60 and older. CRP South serves Orange County residents age 18 and older. Both programs operate in licensed six-bed residential homes located in Anaheim and Mission Viejo and provide services seven days per week, 24 hours per day. The average length of stay is approximately 21 days with an estimated annual capacity of 105 clients per site.

 

Services include crisis, individual and group therapy, case management and discharge planning services, medication monitoring and evaluation, peer support and treatment for co-occurring mental health and substance use disorders. The programs utilize social rehabilitation models that emphasize recovery, development of daily living skills, and strengthening connections to family and community supports. When appropriate, families and significant others are involved in treatment to promote long-term stability following discharge.

 

Clients are referred by Adult and Older Adult Behavioral Health County or County-contracted behavioral health providers. Discharge planning begins upon admission and includes coordination with referring providers, linkage to ongoing behavioral health treatment and connection to housing and community-based services as needed. The goal of the programs is to stabilize individuals in the least restrictive setting possible and reduce the need for inpatient hospitalization or further crisis intervention.

 

Performance Outcomes:

Link a minimum of 70% of clients to a continuing care provider.

Discharge at least 75% of clients to a lower level of care.

Ensure at least 95% of clients do not require hospitalization within 48 hours of discharge.

Ensure at least 75% of clients will not be readmitted to the same level of care within 14 calendar days of discharge.

 

Providers are required to follow all Medi-Cal regulations for services, billing and HCA standards for quality, responsiveness and family engagement.

 

HCA has verified there are no concerns that must be addressed with respect to Contractor’s ownership/name, litigation status or conflicts with County interests.

 

This Contract does not currently include subcontractors or pass through to other providers. See Attachment C for Contract Summary Forms.

 

HCA requests your Board approve the Contract with Telecare Corporation for provision of Adult Crisis Residential Services North and South Region, as referenced in the Recommended Actions.

 

 

 

 

FINANCIAL IMPACT:

 

Appropriations for these Contracts will be included in Budget Control 042 FY 2026-27 Budget and in the Budgeting process for future years.

 

Should services need to be reduced or terminated due to lack of funding, these Contracts contain language that allows HCA to give a 30-day notice to either terminate or renegotiate the level of services to be provided. The notice will allow HCA adequate time to transition or terminate services to clients, if necessary.

 

 

 

STAFFING IMPACT:

 

An analysis was completed to verify the contract provides County with persons specially trained, experienced, expert and competent to perform the special services in accordance with the law.

N/A

 

 

ATTACHMENT(S):

 

Attachment A - Contract MA-042-26011082 for Adult Crisis Residential Services North Region with Telecare Corporation
Attachment B - Contract MA-042-26011083 for Adult Crisis Residential Services South Region with Telecare Corporation
Attachment C - Contract Summary Form
Attachment D - Individual Score Sheets