Orange County seeks to sever connection with mental health organization Mind OC for the second time.
Orange County is intensifying its efforts to dissociate from the mental health nonprofit organization, Mind OC, based on allegations of overbilling for rent associated with the Be Well mental health center in Orange. The county’s claims were outlined in a court filing submitted on Tuesday, which alleges that Mind OC improperly benefitted from fraudulent practices during its collaboration with the office of former Supervisor Andrew Do, who was recently sentenced for misconduct involving public funds.
County officials assert that Mind OC engaged in actions primarily aimed at maximizing its profits, thereby compromising the essential mental health services required by county residents. According to county spokesperson Molly Nichelson, the county’s objective is to promote accountability and equitable management of taxpayer resources. Furthermore, officials emphasized the need for county health facilities and public funds to be directed towards providing critical and affordable behavioral health care services rather than enriching a private entity like Mind OC.
In response to the allegations, Mind OC officials firmly deny any wrongdoing, insisting that they have adhered to industry standards in their dealings, including rent agreements tied to their mental health facilities. Leaders of the nonprofit point out their successful development of two mental health campuses under the Be Well Orange County brand, highlighting their ongoing efforts to establish a strong community presence. The timing of the county’s complaint coincides with the impending opening of a new Be Well campus in Irvine, which will feature 154 beds. Mind OC representatives argue that the county stands to benefit from their significant investments in the project.
The county’s legal challenges against Mind OC encompass a range of allegations, including fraud and violations of federal health privacy regulations. Notably, county officials claim that Mind OC breached at least 38 terms of its operating agreement with regards to the Be Well campus, which has a capacity of over 90 beds, leading to purported excess profits exceeding .5 million. Additionally, the county reiterated previous claims regarding a 5,000 contract signed by Mind OC with a company linked to Do’s chief of staff, asserting that the nonprofit gained improperly from their association with the disgraced supervisor.
This ongoing dispute has significantly impacted efforts to develop a network of accessible mental health facilities across Orange County. Originally, the initiative aimed to create public/private partnerships that would make treatment readily available to individuals grappling with mental health and substance-related issues, thereby addressing broader social challenges such as homelessness. Currently, the sole operational Be Well center in Orange, opened in 2021, serves only patients with Medi-Cal insurance, leaving those with other types of coverage to seek assistance elsewhere. This limitation underscores the critical need for expanding mental health services in a county widely acknowledged to be underserved in this area. Mind OC remains committed to broadening its operational capacity to ensure that all individuals in need of assistance can access care.
