Contract Summary

This is a Direct Service Contract between the State of Arizona, Department of Child Safety (DCS), and Care Youth Corporation for the provision of Out of State Behavioral Health Services. The contract was awarded to Care Youth Corporation operating facilities identified as Lava Heights Academy and Falcon Ridge Ranch, located at 2560 Business Parkway, Minden, Nevada 89423. The contracting entity is represented by Rusty Alexander, Business Managing Director, and Justin Demuth, Regional Business Manager. The contract number is TR07931, with an effective date of November 2025, and the contract term is one year with options to extend for up to five additional years.

The contract establishes a per-diem payment structure for residential behavioral health services provided to children and youth in out-of-home care settings. Services encompass comprehensive treatment including initial and ongoing assessments, individualized service plans, psychiatric and medical evaluations, therapeutic interventions (individual, group, and family therapy), medication management, educational support, and transition/aftercare planning. The contractor must maintain a licensed Behavioral Health Residential Facility, provide 24-hour awake staff coverage, arrange transportation, maintain staff qualifications and background clearances, and comply with all state licensing and child safety reporting requirements. The contractor is required to maintain commercial general liability insurance with minimum coverage of $2,000,000 general aggregate and $1,000,000 per occurrence, business automobile liability of $1,000,000 combined single limit, workers' compensation as statutory, and professional liability of $2,000,000. Invoicing is submitted monthly within 15 calendar days following the service month through the Guardian system. The Department retains the right to modify allowance amounts, extend the contract term, and terminate services under specified conditions. All service records must be maintained confidentially for five years following contract termination, with case records retained per Arizona retention schedules.