Inpatient Behavioral Health Services

The County of Orange Health Care Agency is issuing a Request for Applications (RFA No. RFA-042-3019403-II) to procure Inpatient Behavioral Health Services through the establishment of two Master Contracts: one for Acute Free-Standing Psychiatric Hospitals (AFSPH) and one for General Acute Care Hospitals (GACH) providing Medi-Cal Mental Health Managed Care Inpatient Hospital Services. The procurement seeks qualified organizations to provide 24-hour acute inpatient psychiatric treatment services to Medi-Cal eligible youth ages 12-17, adults ages 18-64, and older adults ages 65 and older with serious mental health conditions, co-occurring medical or substance use disorders, or severe standalone substance use disorders requiring psychiatric stabilization in a secure environment. Key deliverables include comprehensive inpatient psychiatric services including psychiatric evaluation, medication management, individual and group therapy, discharge planning, family services, and post-discharge follow-up coordination, with mandatory achievement of 100 percent aftercare scheduling within 24 business hours of discharge and rehospitalization prevention rates of 90 percent within seven days and 80 percent within 30 days. Applicants must be Orange County-based facilities licensed by the California Department of Public Health as either a General Acute Care Hospital or Acute Psychiatric Hospital, be Medicare and Medicaid certified as psychiatric hospital providers, be Medi-Cal certified for reimbursement, and obtain Lanterman-Petris-Short (LPS) Act facility designation within six months of application. Required qualifications include demonstrated direct experience providing care in acute psychiatric or acute medical settings within the last two years, compliance with all Title 9 California Code of Regulations staffing requirements including 24-hour nursing and psychiatric coverage, and compliance with all federal and state regulations regarding LPS designation and involuntary treatment standards. The RFA was released on March 31, 2026, with a Questions and Answers deadline of April 24, 2026, an initial application deadline of April 30, 2026, and a final rolling submission deadline of March 31, 2027; the anticipated Board of Supervisors approval date is August 11, 2026, and applications must be submitted electronically via the County's online bidding system and remain valid for 365 calendar days from the solicitation due date.

The procurement does not identify specific set-aside designations or restrictions based on disadvantaged enterprise status, though applicants must meet specific operational and licensing requirements that effectively limit eligible respondents to properly credentialed healthcare facilities. No incumbent vendors or current contractors are identified in the solicitation documents. Reimbursement follows standardized California Department of Health Care Services (DHCS) rate methodology based on the CMS Market Basket Index for Inpatient Psychiatric Facilities, with per diem rates negotiated between hospitals and Mental Health Plans but not exceeding the hospital's usual and customary charges or DHCS-determined maximum rates derived from the most current settled or audited CMS 2552 cost report, with rates varying by age group and pay source. For the AFSPH Master Contract, the total contract value is not to exceed $60,000,000 over three periods (October 1, 2026 through June 30, 2029), with each period capped at $20,000,000, while the GACH Master Contract carries an aggregate amount not to exceed $6,000,000, with each period capped at $2,000,000. Compensation is provided on a fee-for-service basis with direct reimbursement from DHCS and the County of Orange on a monthly basis in arrears, with professional services claimed separately and reimbursed directly by Mental Health Plans. The County intends to execute contracts with all applicants who meet eligibility and submission requirements, establishing master contracts rather than competitive awards.