December 30, 2024
As 2024 comes to a close, we want to express our deepest gratitude for your partnership, advocacy, and collaboration. Together, we've made remarkable strides in transforming California's health care system, advancing innovative programs, and ensuring that equitable, quality, and person-centered care reaches Californians who need it most.
This year has been defined by bold action, from the historic passage of Proposition 1, which is transforming our behavioral health care system, to the continued expansion of Enhanced Care Management (ECM) and Community Supports under California Advancing and Innovating Medi-Cal (CalAIM). These new services go beyond medical needs, addressing critical social drivers of health, such as housing, food security, and transportation, and ensuring more comprehensive care for those we serve.
A key focus for DHCS this year has been on building new systems of care that reflect urgency, accountability, and innovation. Through the Behavioral Health Continuum Infrastructure Program (BHCIP), we are addressing long-standing gaps in behavioral health service treatment sites. The importance of funding and opening new behavioral health facilities and launching new bond-funded projects cannot be overstated. These new facilities, beds, and services are vital for meeting the needs of Californians facing mental health and substance use disorder challenges. Moving quickly and efficiently is not just a goal; it's a necessity.
We also emphasized accountability across all initiatives to ensure resources are used effectively and outcomes improve. Whether through publishing quality ratings and imposing quality-related sanctions for Medi-Cal managed care plans (MCP) or implementing new initiatives like the Health Equity Roadmap, our focus remains on delivering quality care that is innovative, effective, and equitable.
Additionally, we completed a two-year public awareness campaign to educate diverse communities across the state about Medi-Cal enrollment and renewal, while highlighting the new and improved benefits and services available. This multi-faceted effort spanned across several counties, media markets, and formats to educate California's historically hard-to-reach and underserved communities.
Below, we are proud to share our
Top 10 Highlights of 2024, showcasing the key accomplishments we've achieved together this year. These milestones reflect not just the power of collaboration, but also the impact we can make when we work together toward a shared vision.
1. Proposition 1/Behavioral Health TransformationCalifornia made history with the passage of Proposition 1, a landmark initiative that paves the way for a massive overhaul of California's behavioral health system. The measure, championed by Governor Gavin Newsom, also allocates $4.4 billion in bond funding to DHCS to create new treatment beds and outpatient facilities. Together these investments will expand services for individuals with severe mental health and substance use disorders, including people experiencing homelessness, at risk of incarceration, and youth in foster care.
Since the initiative passed in March 2024, DHCS opened the first Request for Applications (RFA) for these new bond dollars, known as Proposition 1 BHCIP Bond Round 1: Launch Ready, providing up to
$3.3 billion in competitive grant funding to expand critical infrastructure across the state. The response has been overwhelming, with grantees, including cities, counties, Tribal entities, and nonprofits, planning to use these funds to construct and rehabilitate facilities that deliver much-needed services to their communities. DHCS also introduced the
Behavioral Health Transformation Policy Manual modules, which, once complete, will provide interactive guidance for counties to create and implement integrated behavioral health plans informed by public feedback. These efforts emphasize
accountability and transparency, ensuring that Proposition 1 delivers measurable improvements in care. Together with the vital contributions of local partners, these initiatives lay the foundation for a more equitable, accessible, and responsive behavioral health care system for all Californians.
2. BHCIP Groundbreakings and Ribbon Cuttings This year marked milestones in expanding behavioral health infrastructure, as DHCS and local partners celebrated the groundbreaking of several treatment facilities funded by
BHCIP grants. The original BHCIP projects, supported by $1.7 billion in funding authorized in 2021, address critical gaps in the state's ability to provide treatment for mental health and substance use disorders. From
Modesto and
Oakland to
Los Angeles and
Indio, these facilities are breaking ground and opening to serve Californians. With Proposition 1's funding, even more facilities are set to begin construction, expanding access to care and building a stronger foundation for behavioral health services across California.
3. Justice-Involved Reentry InitiativeCalifornia became the first state in the nation to implement a federally approved CalAIM
Justice-Involved Reentry Initiative, providing essential Medi-Cal services to individuals in jails and correctional facilities during the 90 days before their release. This
groundbreaking program aims to ensure smoother transitions back into the community while addressing significant health equity gaps. As of October 1, three counties—Inyo, Santa Clara, and Yuba—began delivering these services, with all counties required to implement the initiative by 2026. By focusing on preventive care and continuity of services, the program helps reduce recidivism and supports better health outcomes for justice-involved individuals.
4. BrightLife Kids and Soluna Apps LaunchTo address youth mental health needs, Governor Newsom called for virtual platforms to ensure young people and their caregivers could more easily access mental health supports. In response, DHCS
introduced two innovative apps:
BrightLife Kids for children ages 0–12 and
Soluna for teens and young adults ages 13–25. These apps provide a vital new way for families to access professional mental health support, offering services in English, Spanish, and other Medi-Cal threshold languages. The apps deliver coaching and resources tailored to the needs of young people and their caregivers, empowering families with tools to navigate mental health challenges and improve overall well-being.
5. Enhanced Care Management (ECM) and Community SupportsAs part of CalAIM,
ECM and
Community Supports services are transforming how Medi-Cal delivers care to
members with complex needs. By addressing medical and social drivers of health, such as housing, transportation, and nutrition, these benefits and services provide a person-centered approach that improves overall health outcomes. Since launching in January 2022, 244,750 members have received ECM benefits, with a
50 percent increase in April-June 2024 (127,024 members) compared to April-June 2023. Additionally, approximately 239,500 members have accessed Community Supports services—a 120 percent increase from April-June 2023. In 2024, DHCS expanded these services to more counties and extended ECM eligibility to two new Populations of Focus: pregnant and postpartum individuals and justice-involved persons.
6. Providing Access and Transforming Health (PATH) Capacity and Infrastructure, Transition, Expansion, and Development (CITED) GrantsThe
PATH-CITED initiative
awarded $146.6 million to 133 organizations, marking a milestone for the Medi-Cal delivery system. Focused on workforce development, technology, and infrastructure, these grants empower new and existing providers to deliver on CalAIM's promise of coordinated, person-centered care. To date, DHCS has awarded more than $390 million to more than 300 organizations statewide, enhancing their ability to deliver whole-person care. The final round of funding opens in early 2025, reaffirming California's commitment to expanding access to essential care.
7. Medi-Cal MCP Quality RatingsDHCS continues to hold MCPs accountable for performance. In 2024, DHCS published the third annual
quality ratings for MCPs and, for the first time, county behavioral health plans. DHCS imposed monetary sanctions on underperforming MCPs while also offering support to help them improve performance. These measures built on the new MCP standardized contract, effective January 1, 2024, which set goals for plans to meet or exceed national quality standards and enhanced health equity requirements. The ratings and sanctions are part of DHCS'
Bold Goals 50x2025 initiative, which aims to improve health outcomes in areas such as child health, behavioral health integration, and preventive care.
8. Health Equity Roadmap Initiative TourIn partnership with the California Health Care Foundation, DHCS launched the
Health Equity Roadmap to address health disparities among Medi-Cal members, particularly Black, Indigenous, and other communities of color. This initiative began with a
statewide listening tour, during which DHCS experts heard directly from Medi-Cal members about their experiences and challenges with accessing care. The information gleaned during the listening tour will inform the design of a final Health Equity Roadmap, which will lay out specific, actionable items aimed at rooting out systemic racism and eliminating health inequities and disparities. By incorporating community feedback, the roadmap will prioritize culturally appropriate, patient-centered solutions, ultimately building a stronger, more inclusive health care system for all Californians.
9. Traditional Healers and Natural HelpersIn a historic milestone, Medi-Cal now covers
culturally centered substance use disorder treatment services provided by traditional healers and natural helpers. This landmark
policy change makes California one of only four states to offer Medicaid reimbursement for traditional health care practices. American Indian and Alaska Native communities will benefit from expanded access to culturally based care through Tribal health clinics, Urban Indian organizations, and other providers. This change marks a new chapter in integrating traditional practices into modern health care systems.
10. Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT)Last but not least, DHCS wrapped up the year with
federal approval of the
BH-CONNECT initiative, reinforcing California's effort to build a stronger, community-focused network of behavioral health care. BH-CONNECT fills critical service gaps, provides transitional rent to stabilize those with severe mental health and substance use needs, strengthens access to evidence-based services, rewards counties for expanding care and improving outcomes, and invests $1.9 billion to grow the behavioral health workforce. These reforms are key pillars of the broader behavioral health transformation, ensuring more Californians receive the right care, in the right place, at the right time.
All these accomplishments are possible only through the dedication and hard work of Team DHCS—the more than 4,000 individuals who commit their talents to serving Californians. As we reflect on these accomplishments, we look forward to continuing our work together in 2025 toward a healthy California for all. Thank you for your partnership and ongoing commitment to transform lives.
