Behavioral Health Transformation
Modernizing behavioral health to improve accountability, increase transparency, and expand the capacity of behavioral health care facilities.
Individual Service Level Encounter Reporting
DHCS is pleased to announce the launch of the Individual Service Level (ISL) encounter reporting system, a major step forward in modernizing California’s behavioral health data infrastructure. This BHSA‑mandated initiative strengthens statewide collaboration among DHCS, counties, providers, and system partners.
ISL encounter reporting provides a standardized, statewide view of individual‑level, non-Medi-Cal behavioral health services that county behavioral health systems and their provider networks deliver directly to clients. Counties will have a six-month trial period beginning on July 1, 2026, during which submitted data will not be used for reporting or oversight. Mandatory reporting begins on January 1, 2027.
Please visit the ISL Page for more information.
Behavioral Health Transformation is the effort that will implement the ballot initiative known as Proposition 1. Behavioral Health Transformation complements and builds on California’s other major behavioral health initiatives including, but not limited to, California Advancing and Innovating Medi-Cal (CalAIM) initiative, the California Behavioral Health Community-Based Organization Networks of Equitable Care and Treatment (BH-CONNECT) Demonstration proposal the Children and Youth Behavioral Health Initiative (CYBHI), Medi-Cal Mobile Crisis, 988 expansion, and the Behavioral Health Continuum Infrastructure Program (BHCIP).
Californians voted to pass Proposition 1 to modernize the behavioral health delivery system, improve accountability and increase transparency, and expand the capacity of behavioral health care facilities for Californians. Proposition 1 includes up to $6.4 billion in bonds to build new supportive housing and community-based treatment settings. DHCS is enacting changes resulting from Proposition 1 through the Behavioral Health Transformation project.
The two legislative bills that created the language in Proposition 1 are: