Rules committee advances DPH procurement waiver to expand behavioral‑health beds

San Francisco — The Rules Committee unanimously voted Feb. 12 to send to the full Board of Supervisors an ordinance that would give the Department of Public Health temporary authority to bypass competitive solicitations in select cases to secure behavioral‑health and residential treatment beds.

Greg Wagner, a Department of Public Health official who presented the proposal, said the city faces an "undersupply and a lot of demand" for treatment beds and that the waiver would allow DPH, in limited circumstances, to enter into contract negotiations with providers who did not participate in prior competitive solicitations. "At the heart of the request of this ordinance is a competitive solicitation waiver," Wagner said, adding the legislation would include annual reporting and continued contract‑compliance oversight.

The ordinance would preserve other safeguards, Wagner said: contracts would remain subject to Health Commission oversight, state and federal licensing, and usual contracting controls. He said the legislation also contains a five‑year sunset provision. Chair Supervisor Hillary Ronan, a cosponsor, said the city still has not reached a target of roughly 400 treatment beds and described the shortage as a pressing public‑health crisis.

Committee members pressed DPH on how quickly beds can be filled once procured. "This legislation is aiming to address is our shortage of locked subacute beds," said Hillary Conners, Director of Behavioral Health, who told the committee that beds already operational and staffed should allow for rapid placement in many cases but that some service types require additional staffing, assessments and utilization‑management reviews required under Medi‑Cal and related rules. Conners said staff would follow up with more detailed information and work with providers to address placement delays.

The committee opened public comment for the item but heard none. Chair Ronan moved to send the item to the full Board as a committee report with a positive recommendation; Vice Chair Shimon Walton and Supervisor Ahsha Safaie recorded aye votes and the motion passed unanimously.

The full Board of Supervisors will consider the ordinance at a later meeting. If adopted, the ordinance would allow DPH limited flexibility to secure beds more quickly while requiring reporting and oversight during a five‑year trial period.