RFP for Nursing Home Placement Beds

The Colorado Department of Human Services, Division of Contracts and Procurement, is requesting proposals to establish and operate Enhanced Protective Placement beds for individuals with complex neuro-behavioral presentations pursuant to legislative mandate SB 26-149, with proposals due September 10, 2026 by 10:00 a.m. and questions due August 25, 2026 by 10:00 a.m.

Bidders must be qualified healthcare organizations operating state-licensed skilled nursing facilities with active Medicaid Supplemental Behavioral Services qualifications and secure unit-specific locked memory care endorsements. The scope requires dedication of a minimum of 12 beds serving statewide referrals, with capacity for expansion based on demand and funding availability. The facility must provide parallel pathways for both secure memory care settings and unsecure rehabilitative environments accommodating individuals with brain injuries, advanced dementia, acquired neurocognitive disorders, severe mental illness, traumatic brain injury, and co-occurring substance use disorders. Statewide facility location flexibility applies, though the Colorado Department of Human Services Office of Community and Family Mental Health expresses preference for securing and non-secured units under the same roof and all 12 beds in a single community. Operational readiness must be achieved by October 15, 2026. Contractors must provide or arrange 24/7 mental health and psychiatry support services either in-house or through contracted community providers.

Compensation employs a hybrid model with a baseline incentive payment of $307.64 per bed per day for all 12 contracted beds available and/or occupied through June 30, 2027 (maximum $3,691.34 daily for full capacity). Contractors must actively bill commercial insurance or Health First Colorado (Medicaid) as primary payers, with the State reimbursing for uninsured or Medicaid-ineligible clients at daily Medicaid rates plus incentives. Capital and renovation reimbursement is capped at $45,920 on a cost-reimbursement basis through June 30, 2027. A liquidated damages provision requires contractors to repay 80 percent of all state-funded renovation, start-up, and capital expenses upon early termination without cause or termination due to health, safety, or licensing violations within one calendar year of contract execution.

The initial contract term runs through June 30, 2027, with four optional one-year renewals. Anticipated contract start is October 2026. Proposals must not exceed 30 pages excluding mandatory state licensing certificates and financial audits. All contractors must execute a HIPAA Business Associate Agreement. A public opening will occur September 10, 2026 at 10:30 a.m. via Google Meet. Addendum 1 clarifies that contractors may subcontract for substance use disorder support services and that the Momentum Program is not required for all residents.