San Diego Business Journal

BEHAVIORAL HEALTH: SAN DIEGO –

NONPROFITS: TURN Strategizes Growth in Changing Market

■ By MADISON GEERING

After nearly 50 years of operation, San Diego-based healthcare nonprofit TURN Behavioral Health Services has grown to operate 60 programs across seven California counties, reaching a revenue of $100.5 million.

SAN DIEGO – After nearly 50 years of operation, San Diego-based healthcare nonprofit TURN Behavioral Health Services has grown to operate 60 programs across seven California counties, reaching a revenue of $100.5 million.

The nonprofit serves about 15,000 people with mental health, substance use, housing, criminal justice and veterans services.

As the broader nonprofit landscape shifts, TURN CEO James Callaghan discussed how the organization is meeting the moment with innovation, purpose and business savvy.

“It’s all about the clients first,” he said. “How do we keep those services going for the most needy in our community? That’s who we’re serving. We’re serving the most needy in all of our communities, the most underserved. That’s the primary focus.”

Callaghan hopes to amplify TURN’s impact with recent developments like last year’s addition of 110-bed residential treatment program Fresno RISE, increased engagement with other nonprofit leaders and strategic AI implementation.

Callaghan’s background in business at companies like Qualcomm and C & S Professional Services have informed his leadership of TURN since he joined the nonprofit in 2016.

“I can say it’s probably the most rewarding job I’ve had in my career,” Callaghan said. “To watch our clients that graduate programs that have come out of incarceration and re

work their lives through our program, through our employees assisting them. It’s amazing to hear their stories.”

Expanding Service

In partnership with the California Department of Corrections and Rehabilitation, Fresno RISE is a Male Community Reentry Program (MCRP) designed to support adult men transitioning from incarceration back into the community.

Since launching, Callaghan said that the program has been in demand, currently garnering a waitlist.

“We work with them, get them education, get them connected with going back to college, all of their documentation, because they’ve been in prison for some time,” he said.

“When the first five [participants] came, [one] called his mother and said, ‘Man, this is the first time I’ve felt grass in 20 years,’” Callaghan continued. “He was sitting, barefoot, on the on the grass and enjoying the sunshine. It’s good to hear people that are committed and want to change their lives after coming out of incarceration.”

The project was developed in an old hotel. TURN invested about $2 million in the building to turn it into a “full model” for men’s and women’s rehabilitation in the region, Callaghan said.

TURN doesn’t currently have any other major projects in the pipeline, which Callaghan said is partially because the organization is already large in scale and is navigating an evolving landscape.

“The framework of behavioral health and mental health is changing with HR 1, Proposition 1, Proposition 36 — the counties are all trying to navigate all that,” Callaghan said. “And cuts in MediCal, not only at the federal level, but at the state level. So, we’re trying to focus on our current book of business, and as opportunities come up for us to write to RFPs or RFIs, we’ll see if it’s in our wheelhouse.”

Changing with the Times

As the worlds of behavioral and mental health and nonprofits shift, Callaghan said that TURN must stay nimble like any other business navigating market flux.

“I treat a nonprofit world as if it’s a for-profit world,” Callaghan said. “We’re always looking at the balance sheet and the income statement. But I think the other aspect of that is every business has its challenge. There are challenges every day in your own marketplace. I look at behavioral health as our marketplace. What are the challenges there? How do we overcome these barriers in the best interest of client care?”

TURN has begun implementing AI to improve operational efficiency. By lowering costs, Callaghan said, the organization can deliver more services.

The focus of AI implementation has been reducing repetitive manual work and streamlining internal workflows so staff can spend more time on “high value work,” said TURN CIO and CSO Julie Hubbard.

“We have been intentional about laying the groundwork for security, governance and scalability, while small pockets of the organization are already seeing meaningful time savings through effective use of these tools,” she explained.

Implementation is also designed to improve client outcomes by enabling more timely access to services and better coordination of care.

“We are now beginning to evaluate more advanced use cases that will allow us to track measurable outcomes and better quantify impact over time,” Hubbard said.

To stay engaged, prepared and connected, Callaghan said that joining legislative and advocacy committees and local organizations related to their industries can be helpful for nonprofit leaders. He has recently joined more organizations to stay up to date and involved.

While it takes a lot of time and research to be a part of certain committees, Callaghan said it is helpful to bring timely developments to TURN’s team to keep them prepared.

Participating in CEO roundtables also supports innovation and collaboration, he said.

“I think that’s one of the big things for all of us as CEOs of these companies — we’re all committed to the work,” Callaghan said. “Everybody has somebody in their family that’s been touched, in some way, shape or form, with mental illness or substance use. There are times I have families call me up and say, ‘I’ve got an issue. Where can I go to get services?’ Well, I don’t have that, but I’ll refer them to another CEO.”

As TURN considers expansion, Callaghan said that Central Valley “from the border down here in El Centro all the way up” is one of the neediest areas for TURN’s services. Rural hubs especially need support, he said.„

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