May 19, 2025

Top News

Governor's 2025-26 Budget Act – May Revision

DHCS' budget builds upon the Administration's previous investments, within a responsible budgetary structure, and enables DHCS to continue to transform Medi-Cal to create a more coordinated, person-centered, and equitable health system that works for its millions of members and California as a whole. DHCS also continues to modernize the behavioral health delivery system, improve accountability and transparency, and strengthen the continuum of community-based behavioral health care for all Californians. The proposed budget supports DHCS' purpose to provide equitable access to quality health care, leading to a Healthy California for All. Please see the Department's 2025-26 May Revision for more information.

New Behavioral Health Care Facility in Los Angeles County

On May 16, DHCS and Sycamores celebrated the groundbreaking of Sycamores' Children's Crisis Continuum Program, a new behavioral health facility in Altadena. This transformative project will target gaps in the crisis continuum for foster youth across Los Angeles County, with the aim of addressing crises early to avoid escalation in care. DHCS awarded Sycamores more than $2 million for the project through Behavioral Health Continuum Infrastructure Program (BHCIP), Round 5: Crisis and Behavioral Health Continuum. BHCIP is a key component of Mental Health for All, California's ongoing commitment to expand behavioral health services for all Californians. With the passage of Proposition 1, even more behavioral health treatment facilities will be funded and built in 2025 and 2026.

Just days earlier, DHCS awarded $3.3 billion in competitive grant funding through the Bond BHCIP Round 1: Launch Ready awards. This historic investment is funding 124 projects across 42 counties to create or expand 214 behavioral health facilities across California. This investment will result in 5,077 new residential treatment beds and 21,882 new outpatient slots for mental health and substance use disorder treatment, bringing essential behavioral health services closer to the Californians who need them most, including those in the foster care system.

Program Updates

Updated: DHCS Closed-Loop Referral Implementation Guidance

DHCS released an updated version of the Closed-Loop Referral (CLR) Implementation Guidance for managed care plans (MCP). The CLR Implementation Guidance was originally released in December 2024 and outlines requirements for MCPs in implementing CLRs under managed care, including tracking, supporting, and monitoring CLRs. These requirements will ensure more members are connected to the care they need by identifying and addressing gaps in referral paths.

In response to MCP and provider requests for clarification, DHCS made the following updates:

• CLR Noticing under HIPAA: Updated language and legal references to support MCPs in meeting CLR noticing requirements with covered and non-covered entities without individual authorization for purposes of treatment and care coordination.
• CLR Noticing: Clarified the required use of Notice of Action templates in accordance with All Plan Letter 21-011 for all CLRs authorized by the MCP.
• CLR Requirements for Community Supports: Clarified Appendix B to state that CLR requirements will not apply to Sobering Centers, but will apply to the Transitional Rent Community Support upon its launch as a Medi-Cal managed care covered service in July 2025.
• Additional: Revised noticing requirements for self-referrals and referrals generated through data mining, and included other minor formatting updates and clarifications.
  

MCPs must implement CLR requirements by July 1, 2025. Requirements will first apply to two priority benefits/services – Enhanced Care Management and Community Supports. On February 6, DHCS held a webinar to provide an overview of the updates to stakeholder groups. A recording and slides from the webinar are posted on the CalAIM Population Health Management Initiative website under “Informational Webinars." Please send your questions about CLR requirements to PHMSection@dhcs.ca.gov.

Join Our Team

DHCS is seeking a talented and motivated individual to serve as:

• Chief, Capitated Rates Development Division. The Chief leads rate-setting activities for Medi-Cal managed care plans and Programs of All-Inclusive Care for the Elderly organizations. Activities include implementing actuarial methods for establishing capitation rates and overseeing the development and implementation of policies and protocols for reimbursements. Additionally, the Chief ensures financial methodologies are consistent with the efficient delivery of quality health care and comply with state and federal laws, regulations, and rules. Applications must be submitted by May 30.
  

• Assistant Deputy Director (ADD), Enterprise Technology Services (ETS). This new ADD role will build collaborative working relationships with DHCS Executive Staff, program partners, and external stakeholders, and assist with leading and overseeing DHCS' IT programs and services. Additionally, the ADD will play a vital role in leading the development and implementation of IT policies, system architecture, security, improvements, and solutions for DHCS programs, including Medi-Cal and Behavioral Health. Applications must be submitted by June 2.

DHCS is hiring for its accounting, behavioral health, and other teams. For more information, please visit the CalCareers website.

Upcoming Stakeholder Meetings and Webinars

DHCS posts upcoming public meetings on the Calendar of Events. DHCS provides free assistive services, including language interpretation, real-time captioning, and alternate formatting of meeting materials. To request services, please email DHCS at the appropriate contact email address at least ten working days before the meeting.

Stakeholder Advisory Committee (SAC)/Behavioral Health (BH)-SAC Meeting

On May 21, from 9:30 a.m. to 3 p.m. PDT, DHCS will host the hybrid SAC/BH-SAC meeting (advance registration required for online and in-person participation) at 1700 K Street (first-floor conference room 17.1014), Sacramento. SAC provides DHCS with valuable input and feedback on efforts to provide equitable access to quality health care. BH-SAC provides DHCS with input on behavioral health initiatives and was created as part of the ongoing effort to integrate behavioral health with the greater health care system. The agenda and other meeting materials will be posted as the meeting date approaches. For more information, please email SACinquiries@dhcs.ca.gov or BehavioralHealthSAC@dhcs.ca.gov.

Medi-Cal Dental Los Angeles Stakeholder Meeting

On May 21, from 2 to 4 p.m. PDT, DHCS will host the Medi-Cal Dental Los Angeles stakeholder meeting. DHCS will share updates and information about new and upcoming activities. This meeting also provides dental stakeholders with a forum to share input with the Medi-Cal Dental team that can help improve the delivery of oral health care services. Meeting information is posted on the DHCS Medi-Cal Dental Los Angeles Stakeholder Meeting webpage. Additional materials will be posted prior to the meeting or as soon as they become available. Please email your questions to dental@dhcs.ca.gov.

Coverage Ambassador Webinar Series: Birthing Care Pathway 

On May 29, from 11 a.m. to 12 p.m. PDT, DHCS will hold a Coverage Ambassador webinar that will focus on DHCS' Birthing Care Pathway initiative (advance registration required). The webinar will provide information about maternity services for pregnant and postpartum Medi-Cal members from conception through 12 months postpartum and review highlights from the Birthing Care Pathway Report released on February 4. This initiative helps to ensure Medi-Cal members have access to high-quality, equitable care to improve maternal health outcomes and reduce disparities. Coverage Ambassadors will also learn about DHCS' social media platforms, which offer up-to-date information on relevant topics that can benefit both Coverage Ambassadors and Medi-Cal members. Simultaneous interpretation in Spanish will be offered during the webinar.

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