Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  25-000685

 

MEETING DATE:

04/14/26

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Health Care Agency   (Approved)

Department contact person(s):

Veronica Kelley (714) 834-7024 

 

 

Ian Kemmer (714) 834-2160

 

 

Subject:  Renewal Wraparound Mental Health Outpatient Services for Children and Youth

 

     ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost:  $1,500,000

Annual Cost: FY 2026-27 $4,500,000
FY 2027-28 $4,500,000

 

 

 

    Staffing Impact:

No

# of Positions:           

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:    See Financial Impact Section

County Audit in last 3 years: No

   Levine Act Review Completed: Yes

 

    Prior Board Action:         5/23/2023 #33

 

RECOMMENDED ACTION(S):

 

 

1.

Approve Amendment No. 3 to increase and renew the Master Contract for provision of Wraparound Mental Health Outpatient Services for the term of April 14, 2026, through June 30, 2028, for an aggregate amount not to exceed $10,500,000, for a revised aggregate amount not to exceed $19,500,000.

 

2.

Approve Amendment No. 5 to renew the individual Contract with New Alternatives, Inc., for provision of Wraparound Metal Health Outpatient Services, for the term of July 1, 2026, through June 30, 2028.

 

3.

Approve Amendment No. 4 to renew the individual Contract with Olive Crest for provision of Wraparound Mental Health Outpatient Services, for the term of July 1, 2026, through June 30, 2028.

 

4.

Approve Amendment No. 6 to renew the individual Contract with South Coast Children's Society, Inc., dba South Coast Community Services for provision of Wraparound Mental Health Outpatient Services, for the term of July 1, 2026, through June 30, 2028.

 


 

5.

Authorize the County Procurement Officer or Deputized designee to execute the Amendments for the Master Contract and individuals contracts with New Alternatives, Inc., Olive Crest and South Coast Children's Society, Inc., dba South Coast Community Services, as referenced in the Recommended Actions above.

 

 

 

 

SUMMARY:

 

Approval of the Amendments to increase FY 2025-26 budget and to renew the Master Contract and individual contracts with various providers for provision of Wraparound Mental Health Outpatient Services will allow for the provision of wraparound services for youth who are at immediate risk of being placed in the foster care system or being detained in a juvenile correctional facility.

 

 

 

BACKGROUND INFORMATION:

 

On May 23, 2023, your Honorable Board of Supervisors (Board) approved the Master Contract and individual Contracts for provision of Wraparound Mental Health Outpatient Services. The Orange County Preference Policy is not applicable to these Contract amendments.

 

The below actions have been executed per delegated authority.

 

Prior Board Action

Board Date

Contract/

Amendment

Action

Term

Contract

Amount

May 23, 2023

Contracts

Board Approved Master Agreement and Individual Contracts

July 1, 2023 - June 30, 2026

Aggregate Master Amount $9,000,000

N/A

Amendment No. 1: Olive Crest, South Coast Community Services (SCCS) and New Alternatives, Inc. (NAI)

 

 

 

 

 

 

Deputy Purchasing Agent (DPA) Delegated Authority: Administrative Revisions to Exhibit A of the Contract and individual budget increases to Contracts.

 

January 5, 2024 - June 30, 2026

 

 

 

 

 

 

 

 

 

 

N/A

 

 

 

 

 

 

 

 

N/A

Amendment No. 2: SCCS

 

DPA Delegated Authority: Administrative Individual budget increase.

 

 

May 31, 2024 – June 30, 2026

 

Individual budget increased by $207,551. No change to Aggregate Amount 

 

N/A

Amendment No. 3: SCCS

 

DPA Delegated Authority: Contingency increase.

 

June 5, 2025 – June 30, 2026

 

Individual budget increased by $257,802. No change to Aggregate Amount

 

N/A

Amendment No. 2: NAI

 

DPA Delegated Authority: Contingency increase.

 

June 11, 2025 - June 30, 2026

 

Individual budget increased by $30,000. No change to Aggregate Amount.

N/A

Amendment No. 3: NAI

Amendment No. 2: Olive Crest Amendment No. 4: SCCS

 

DPA Administrative Revisions; Amended to change from Actual Cost Contract to Fee for Service Contract to Master and individual Contracts. 

 

July 1, 2025 – June 30, 2026

 

N/A

N/A

Amendment No. 4: NAI

Amendment No. 3: Olive Crest Amendment No. 5 SCCS

DPA Delegated Authority: Administrative Revisions to Exhibit A to Master and Individual Contracts.

February 26, 2026 – June 30, 2026

 

N/A

 

 

 

Scope of Services

The Wraparound Program provides intensive, individualized behavioral health services to Medi-Cal eligible youth with complex needs who are at risk of entering foster care or juvenile justice placements. The Wraparound Program uses a family-centered approach designed to help youth remain safely in their homes and communities whenever possible. The Wraparound Program consists of Specialty Mental Health Services that counties are required to provide to eligible Medi-Cal beneficiaries when medically necessary.

 

Youth are referred to the Wraparound Program by the Social Services Agency, Orange County Health Care Agency (HCA), and/or the Orange County Probation Department. Services are tailored to each youth and family through a collaborative planning process that actively engages caregivers and natural supports. Behavioral health services may include psychosocial assessments, crisis interventions, intensive care coordination, targeted case management, mental health rehabilitation, and intensive home-based services.

 

Providers are required to follow Medi-Cal regulations and HCA standards for quality, cultural responsiveness, and family engagement. The overall goal of the Wraparound Program is to stabilize families, reduce the need for higher levels of care, avoid foster care or juvenile justice placements, and support youth in achieving long-term stability in a family setting.

 

Performance Outcomes

Behavioral health providers under the Wraparound Program contracts use the Child and Adolescent Needs and Strengths (CANS) assessment, a State-mandated tool that identifies clinical needs, treatment priorities, and strengths for youth involved in multiple systems of care. CANS data is used to monitor clinical progress and evaluate program effectiveness over the course of treatment. 

 

Over the past two fiscal years, CANS results indicate that a strong majority of youth receiving Wraparound Program services maintained or improved functioning across key clinical domains, including mood symptoms, behavior regulation, and adjustment to trauma. These outcomes reflect the effectiveness of the Wraparound Program model in delivering intensive, trauma-informed behavioral health services within family and community-based settings.

 

While performance has remained strong and consistently met HCA expectations, the data also reflects the increasing clinical complexity of youth served through the program. HCA establishes performance targets using historical and current CANS data trends across all Wraparound Program providers. Performance targets were increased after recent evaluation of data trends to ensure they remain appropriate and clinically meaningful. 

 

Number of Youth Served by Fiscal Year (FY)

Contract Provider

Youth Served in FY 2023-24

Youth Served in FY 2024-25

NAI

135

160

Olive Crest

119

199

SCCS

140

216

Total

394

575

 

Percent of Youth Maintaining or Improving Clinical Outcomes During Treatment by FY

Symptom Area

Target Range

FY 2023-24

FY 2024-25

Mood Symptoms

75-80%

74%

81%

Behavior Regulation

65-70%

74%

68%

Adjustment to Trauma

65-70%

70%

65%

 

The Contractors' performance has been confirmed as satisfactory. HCA has verified there are no concerns that must be addressed with respect to the Contractors' ownership/name, litigation status, or conflicts with County interests.

 

The proposed individual Contracts do not have subcontractors. See Attachment E for Contract Summary Form.

 

HCA requests that the Board approve the Master Agreement and individual Contracts with New Alternatives, Inc., Olive Crest and South Coast Children’s Society, Inc. dba South Coast Community Services, for Wraparound Mental Health Outpatient Services, as referenced in the Recommended Actions.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for these Amendments are included in Budget Control 042 FY 2025-26 Budget and will be included in the budgeting process for future years.

 

The Contracts contain languages allowing HCA to terminate the contract, reduce the level of services and/or renegotiate the levels of services to be provided should funding become unavailable.

 

Funding Sources:

 

Fees/Other: 90% (Federal Financial Participation Medi-Cal)

State: 10% (2011 Realignment - Early, Periodic, Screening, Diagnostic and Treatment)

 

 

 

STAFFING IMPACT:

 

An analysis was completed to verify these contracts provide HCA with persons specially trained, experienced, expert and competent to perform the special services in accordance with the law.

 

 

 

ATTACHMENT(S):

 

Attachment A - Amendment No. 3 to Master Contract MA-042-23011382 for Provision of Wraparound Mental Health Outpatient Services
Attachment B - Amendment No. 5 to Contract MA-042-23011382 for Wraparound Mental Health Outpatient Services with New Alternatives, Inc.
Attachment C - Amendment No. 4 to Contract MA-042-23011382 for Wraparound Mental Health Outpatient Services with Olive Crest
Attachment D - Amendment No. 6 to Contract MA-042-23011382 for Wraparound Mental Health Outpatient Services with South Coast Children's Society, Inc., dba South Coast Community Services
Attachment E - Contract Summary Form