Orange County has officially severed ties with the nonprofit Mind OC, assuming immediate control of two critical behavioral health campuses in Orange and Irvine. The move comes as part of a settlement intended to end a bitter legal feud characterized by accusations of fraud, profiteering, and breach of contract. Under the terms of the agreement, Mind OC will relinquish its ground leases and interests in the properties in exchange for a 2.1 million dollar reimbursement from the county. While Mind OC keeps the Be Well OC brand name, the county’s Health Care Agency will now oversee operations and rename the facilities.
The resolution marks a turning point for the massive 110 million dollar Irvine campus, which had remained vacant for months due to the litigation. Supervisor Katrina Foley expressed relief that the county finally holds the keys to the 154 bed facility, noting that it allows children and families in crisis to access essential care closer to home. Officials say preparations are already underway to launch various services at the site, including residential treatment, substance use recovery programs, and specialized adolescent and perinatal care. Meanwhile, services at the established Orange campus are expected to continue without any disruption to patients.
The partnership between the government and the nonprofit first soured when the county filed a lawsuit alleging that Mind OC overbilled millions of dollars in rent for the Orange site. The dispute spiraled into wider claims involving violations of federal health privacy laws and allegations that Mind OC acted as little more than a landlord rather than a healthcare provider. Further complicating matters were reports that county funds were funneled toward an associate of former Supervisor Andrew Do, who is currently serving time in federal prison for bribery related to pandemic funding. Although Mind OC repaid those specific funds and denied wrongdoing regarding rental rates, the relationship became untenable.
Despite the contentious split, leadership at Mind OC maintains that their efforts helped build state of the art infrastructure for regional mental health services. Dr. Richard Afable stated that the organization remains committed to its mission of enhancing behavioral health care through public and private collaborations throughout Orange County. As moving trucks and administrative changes take place at both campuses, local officials hope that shifting these centers into direct public management will prioritize patient access over corporate disputes.
