DHCS Announces $119M in Award Notices to Advance its Vision of Whole System, Person-Centered Approach to Care

The California Department of Health Care Services (DHCS) today announced the award notification of $119 million in total funding to help local organizations build capacity and infrastructure in Medi-Cal’s delivery system. These funds further the vision of California Advancing and​ Innovating Medi-Cal (CalAIM), California’s long-term commitment to transform and strengthen Medi-Cal, offering Californians a more equitable, coordinated, and person-centered approach. The awards for 98 organizations are being made through Providing Access and Transforming Health (PATH) Capacity and Infrastructure, Transition, Expansion, and Development (CITED) Initiative Round 1A.

The PATH program is comprised of multiple aligned initiatives that will provide funding, tools, technical support, and resources to Medi-Cal providers, including community-based organizations (CBOs), counties, Tribes, local governmental entities, and other community partners to support a smooth transition to CalAIM.

“Today’s awards will help new providers and organizations develop the capacity to participate in the Medi-Cal health care delivery system, expanding the networks of Community Supports and Enhanced Care Management benefit providers who will be available to serve Medi-Cal members,” said DHCS Director Michelle Baass. “CITED funds will be used to strengthen capacity and infrastructure statewide, particularly among providers and CBOs that have historically been under-resourced.”

PATH CITED funds will be used toward increasing the provider workforce, investing in infrastructure and IT systems to support the delivery of Enhanced Care Management (ECM) or Community Supports, developing plans to conduct outreach to historically under-resourced and/or underserved populations to engage them in care or other uses justified in the application process. Organizations are also invited to use funds to conduct community health assessments to evaluate and address existing gaps in ECM and Community Support services.

“CITED funding will help address the gaps in local organizational capacity and infrastructure, enabling these local partners to scale up the services they provide to Medi-Cal members,” said State Medicaid Director Jacey Cooper. “These are tangible dollars that will help organizations add staff, develop capabilities, such as billing and data exchange systems, and enable community partners to successfully contract with managed care organizations to provide the new Medi-Cal benefit of Enhanced Care Management and Community Support services.”

The PATH CITED initiative originally intended to award $100 million to eligible entities, but in order to further support the development of CalAIM infrastructure, and in response to the large volume of requests received in Round 1, DHCS is adjusting the Round 1 allocation to approximately $250 million for two Round 1 announcements: Round 1A and Round 1B. Both Round 1A and Round 1B awardees were selected from the current Round 1 applicant pool. Round 1B will be announced no later than March 2023. The CITED initiative will provide $580 million in total funding, and the next application window will open in February 2023.

Recipients of PATH CITED grants include cities, counties, local government agencies, Tribal entities, nonprofits, public hospitals, and others approved by DHCS. CITED applicants were required to actively be contracted to provide ECM/Community Supports or have a signed attestation from a Medi-Cal managed care plan or their subcontractor that they intend to contract with to provide ECM/Community Supports in a timely manner.

“Our community partners are critical in scaling Enhanced Care Management and Community Supports statewide,” said Susan Philip, Deputy Director of DHCS Health Care Delivery Systems. “Under CITED, DHCS is helping partners address their specific, identified capacity needs and supporting the capacity and infrastructure they are planning to sustain.”

For more information about the PATH initiative, as well as other CITED rounds of funding, please visit the PATH website.