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On June 30, 2022, California Governor Gavin Newsom signed a fiscal 2023 budget with provisions that will permit the state Department of Health Care Services (DHCS) to seek federal approval to expand its institutions of mental disease (IMD) demonstration project. Specifically, DHCS will seek approval to operate the IMD demonstration project on a statewide basis or on a county-by-county basis.

DHCS will seek federal financial participation (FFP) for services furnished to Medi-Cal beneficiaries during short-term stays for acute care in psychiatric hospitals or residential treatment settings with 16 or more beds that qualify as IMDs. This . . .

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Mental Health Services

The mental health market is defined as treatment services for mental and emotional health and psychiatric care for individuals of all ages. Mental health services are provided by a wide array of professionals, including certified counselors, psychiatrists, psychologists, neurologists, and social workers. The mental health market is facing new challenges – continued cost pressures on Medicare, Medicaid, and government programs; a shift to value-based care financing models; increased consolidation of health systems; and a push towards tech-enabled, consumer-led interventions. While these challenges may seem immense, the mental health market has experienced numerous shifts over the years from the move to managed care to increased community-based care. Organizations that can adapt to these changes are most likely to succeed.

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California Awards $1.18 Billion In Bond Funding To Add 2,500+ Beds & 4,200+ Outpatient Slots
California awarded $1.18 billion in grant funding for 66 behavioral health infrastructure projects across 130 facilities to expand residential and crisis treatment capacity statewide. The projects are expected to add 2,554 residential and inpatient beds and 4,273 outpatient treatment slots. The funding is part of the Bond Behavioral Health Continuum Infrastructure Program (Bond BHCIP) Round 2: Unmet Needs, created through Proposition 1, which was approved in 2024. Proposition 1 authorized $6.4 billion in bond funding… Read

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