Acentra Health Secures $27.5 Million Contract with California for PASRR Mental Health Screenings
Contract Overview and Background
On April 29, 2025, Acentra Health, a prominent technology and healthcare solutions provider, announced the award of a two-year contract valued at $27.5 million, with an additional optional year, from the California Department of Health Care Services (DHCS). This contract ensures the continued delivery of critical screening and evaluation services under California’s Preadmission Screening and Resident Review (PASRR) program, which focuses on identifying and evaluating serious mental illnesses among long-term care residents.
This new agreement follows a competitive bidding process and further solidifies Acentra Health’s role as a trusted partner for California Medicaid since 2015. The PASRR program is federally mandated to screen Medicaid applicants entering nursing home facilities to determine if they have serious mental illness, intellectual or developmental disabilities, or related conditions.
Understanding PASRR and Its Importance
The PASRR program functions through two levels of screening:
- Level I Initial Screening: This determines whether an individual has a qualifying mental health or developmental condition.
- Level II Evaluation: Individuals identified by Level I undergo a more comprehensive evaluation to ensure they receive appropriate services in the least restrictive environment possible.
This process aims to protect vulnerable individuals by ensuring proper placement and access to necessary mental health services, preventing unnecessary institutionalization.
Acentra Health’s Role and Achievements in California
California administers the largest PASRR program nationwide. Annually, Acentra Health conducts approximately 233,000 initial Level I screenings and 18,000 Level II evaluations for the state. Over the years, the company has collaborated closely with DHCS to enhance clinical workflows and program operations which align with California’s goals for fiscal responsibility and integrity.
Impressively, these efforts have resulted in some of the fastest PASRR turnaround times in the country, averaging fewer than two calendar days for all assessments—significantly below federal benchmarks. This efficiency improves timely decision-making and access to care for those in need.
Todd Stottlemyer, CEO of Acentra Health, expressed the company’s commitment and pride, stating, “We are honored to be selected again by the California Department of Health Care Services as their vital partner for PASRR services. This award reflects our dedication and 23-year history of delivering impactful and value-driven solutions to our PASRR clients across the country.”
Expanding National Footprint
The California contract extends Acentra Health’s PASRR presence to eight states. Recently, the company was also selected by the Kansas Department of Health and Environment and the Washington State Health Care Authority to provide Level II PASRR assessments, with go-live dates set for April 1, 2025, and July 1, 2024, respectively.
This expansion underscores Acentra Health’s expertise and growing trust among state Medicaid programs in managing complex mental health screenings and evaluations.
About Acentra Health
With over three decades of experience, Acentra Health specializes in evaluating and assessing Medicaid beneficiaries’ medical necessity, ensuring aligned care and compliance with federal regulations. Their comprehensive PASRR services include full-spectrum Level I screenings, Level II evaluations, determination processes, notifications, a dedicated PASRR IT infrastructure, and detailed daily and monthly program reporting.
Acentra Health leverages a combination of public sector knowledge, clinical expertise, and technological innovation to improve healthcare outcomes for state, federal, and commercial partners. Beyond PASRR, the company develops advanced claims processing, encounter management, and clinical service delivery models aimed at increasing efficiency, reducing costs, and enhancing quality of care.
Acentra Health is backed by the global investment firm Carlyle, highlighting its strong financial and operational foundation.
Media Contact:
Janice Moore
Vice President, Corporate Communications
Phone: 703-214-3552