The Garden Grove City Council unanimously approved a $1.5 million first-year contract with the nonprofit Healthcare In Action on August 25, initiating the phase-out of mental health services previously provided by Be Well OC. This decision came after Be Well OC's parent nonprofit, Mind OC, informed city leaders that it could no longer financially sustain its obligations under the existing contract.

Mind OC's difficulties stem from a years-long legal dispute with the County of Orange, involving ownership claims and service provision rights at two mental health campuses jointly developed. An earlier county audit identified multiple issues at Mind OC’s Orange campus, leading county supervisors to withdraw their mental health service contracts with Mind OC in 2024. Mind OC subsequently sued the county for alleged breach of contract. Currently, the County of Orange operates the Orange facility, while the Irvine branch remains closed as the ownership dispute continues in court.

The new contract with Healthcare In Action will be funded primarily by reallocating $1.1 million previously earmarked for Be Well’s contract. An additional $450,000 will be reappropriated from the city’s National Opioid Settlement fund to cover the remaining costs of the new agreement. Councilmember Joe DoVinh commented on the use of these funds at the August meeting, stating, "If we don't use it, we lose it."

Garden Grove plans a transitional period during which both Healthcare In Action and Be Well’s services will operate simultaneously under the supervision of the Garden Grove Police Department. This dual operation is slated to continue until November 30. Following this date, Healthcare In Action is scheduled to operate independently under a city-led pilot program until March 2027.

Healthcare In Action will deploy two crews to provide mobile mental health services, operating from 9 a.m. to 5 p.m. One crew will work Monday through Friday, and the other from Wednesday through Sunday. During the August meeting, city officials raised questions regarding the rollout of these services.

Councilmember George Brietigam questioned the overlapping shifts, suggesting a 3 p.m. to 11 p.m. shift to provide support during later hours. "Wouldn't it be prudent to have one of the units starting at 3 p.m. and going to 11 to give the p.m. watch guys some support as well?" Brietigam stated. Councilmember Cindy Ngoc Tran also supported a later shift, citing common issues for small businesses reporting incidents late at night. In response, Timothy Throne, a project manager for the city’s economic development team, attributed the single shift timeframe to budget constraints. Throne also noted that "Caller data showed that beyond 6 p.m., there weren’t that many calls to dispatch in regard to homeless-related calls or even crisis calls," based on data provided by Be Well.

Councilmember Ariana Arestegui expressed concerns that the new contract would cost more for fewer operating hours. The previous Be Well contract, when fully operational, provided 18 hours of service daily for an annual cost of $1.1 million. The new Healthcare In Action contract initially costs $1.5 million for eight hours of daily service, although annual costs are projected to decrease to $1.2 million after the first year. Arestegui emphasized the critical importance of providing mental health services, stating, "That is something that is at the top of my mind: making sure that we are addressing the needs of the community as much as possible."

Healthcare In Action is set to begin its full solo operation as part of the city’s pilot program after November 30, with the contract period extending to March 2027.