MHCAN failed to properly invoice county for ‘significant’ amount of money before closure

The abrupt closure of a key mental health service in August sent shockwaves through Santa Cruz County. Then, an effort by the organization’s leadership to discourage staff and board members from talking about it publicly buried the situation under a shroud of questions and uncertainty. 

More than a month later, county officials have shed new light on what led to the sudden shuttering of the Mental Health Client Action Network, or MHCAN, the county’s only peer-run support group and day center for people with self-disclosed mental illness. Everyone who works for or is served by MHCAN is dealing with mental health challenges, and many clients are homeless.  

According to assistant county executive officer Nicole Coburn, MHCAN had failed to properly invoice the county on several occasions leading up to its closure in late August. Coburn said the county “owes them a significant amount of money” and is continuing to work with the organization to figure out exactly how much. Coburn told Lookout that MHCAN had not properly filed invoices on at least five occasions. 

Coburn estimated that each invoice could be worth up to $50,000, which means the county could owe MHCAN as much as a quarter of a million dollars — nearly half of its $587,000 contract for fiscal year 2024. MHCAN staff who spoke with Lookout last month, on the condition of anonymity out of concern over retribution, said they had not received a paycheck since July 15. Right before its closure, MHCAN’s all-volunteer board of directors voted to fire its executive director. 

Coburn said the county is working with MHCAN to “clean up” the organization and reopen its doors. She couldn’t say whether reopening was weeks or months away, but emphasized the need for MHCAN to find a new executive director. 

“They obviously need to have someone in place who can make sure all the staff are recording their hours, drivers are logging their trips,” etc., Coburn said. “They need someone over there to be a visible presence and manage the services on a day-to-day basis.” 

During Tuesday’s board of supervisors meeting, Coburn told county lawmakers that the county was looking into alternative models for MHCAN that could allow it to attract new grants and even Medi-Cal benefits, which it doesn’t do today. Coburn did not offer specifics; however, such a change could alter the ethos of a place that prides itself as a safe, judgment-free space, run by empathetic peers as opposed to social workers and doctors.

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