August 12, 2026

CALIFORNIA TAKES ACTION TO IMPROVE TIMELY ACCESS TO BEHAVIORAL HEALTH CARE

Temporary Funding Withholds Reinforce Accountability for County Behavioral Health Plans that Failed to Meet State and Federal Provider Network and Timely Access Standards

SACRAMENTO —The Department of Health Care Services (DHCS) today announced new enforcement actions holding county Behavioral Health Plans (BHP) accountable to improve behavioral health access for Medi-Cal members. DHCS is implementing temporary funding withholds for 10 county BHPs that have not corrected repeated deficiencies in meeting state and federal standards for having enough providers to meet the needs of Medi-Cal members and/or ensuring timely access to behavioral health care.

“When someone needs help, waiting carries real consequences. Every day without care is a day of fear, confusion, and suffering that could have been eased. Care should meet people where they are: on time, close to home, and without hoops to jump through,” said DHCS Director Michelle Baass. “People deserve a path that is simple, steady, and kind, because mental health care isn’t paperwork, it’s help in the moment it matters.”

WHY THIS IS IMPORTANT: County BHPs are required to meet network adequacy (having enough qualified providers in a BHP to meet the needs of Medi-Cal members) and provide timely access to care. Each year, DHCS measures BHPs’ network adequacy, including provider-to-member ratios, appointment wait times, and geographic access. For years, DHCS has provided technical assistance and imposed corrective action plans to help BHPs address gaps and deficiencies with meeting established standards. Temporary funding withholds represent the next step to hold plans accountable. As California transforms its behavioral health delivery system, timely access to care remains essential.

“For several years, California has emphasized that timely, high-quality care is not optional—it’s fundamental to Medi-Cal’s mission. While several counties have made meaningful progress, others continue to have targeted gaps that need to close,” said State Medicaid Director Tyler Sadwith. “These temporary withholds underscore our commitment to accountability and ensure that every county moves decisively toward building the provider networks Californians need. By enforcing clear expectations and supporting counties to meet them, we are advancing a system where every member can rely on timely, equitable behavioral health care.

WHAT THIS MEANS: DHCS will temporarily withhold a portion of behavioral health funding from BHPs that remain out of compliance with one or more network adequacy standards for two consecutive certification cycles (2024-25 and 2025-26). Funds will be returned once a BHP demonstrates compliance. BHPs with deficiencies will also move into enhanced monitoring, including regular progress reporting and ongoing technical support. The imposition of temporary withholds represents the beginning point of a graduated enforcement framework that allows for further escalation as warranted, including ongoing temporary withholds and permanent monetary sanctions.

HOW THIS IMPROVES CARE: Holding counties accountable for meeting access standards helps ensure Medi-Cal members receive timely, medically necessary behavioral health services. Strong provider networks reduce wait times, improve access to care close to home, and support California’s broader behavioral health transformation through the California Advancing and Innovating Medi-Cal (CalAIM) initiative and Mental Health for All. By strengthening county provider networks, DHCS is improving access to quality mental health and substance use disorder treatment.

FINDINGS: During the 2025-26 certification cycle, DHCS assessed BHPs against 43 Specialty Mental Health Services (SMHS) and 46 Drug Medi-Cal Organized Delivery System (DMC-ODS) standards. Ten BHPs did not resolve deficiencies over two or more years and will have funds temporarily withheld:

• Six county BHPs with SMHS deficiencies: Merced, San Mateo, Santa Clara, Shasta, Tehama, and Ventura.
• Three county BHPs with DMC-ODS deficiencies: Napa, Fresno, and Tulare.
• One county BHP with both SMHS and DMC-ODS deficiencies: San Francisco.

DHCS will return withheld funds once a plan corrects its deficiencies. These actions follow state law and DHCS policies in Behavioral Health Information Notice (BHIN) 25-023 and BHIN 25-013.

ONGOING WORKFORCE INVESTMENTS: Alongside enforcement, DHCS continues to invest heavily in expanding California’s behavioral health workforce. Through the Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT) workforce initiative, the state is investing $1.9 billion over five years to support training, recruitment, and retention of behavioral health providers. Also, the Department of Health Care Access and Information is advancing statewide workforce development through its five-year Workforce Education and Training (WET) plan. Counties can supplement statewide efforts through the Behavioral Health Services Act.

MORE INFORMATION: For more information, please see the 2025-26 Behavioral Health Network Adequacy Compliance Report on the DHCS Network Adequacy webpage.

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