California awards $418 million in grants to support healthcare

California announced $418 million in grants dedicated to expanding the state's healthcare workforce and infrastructure on Sunday.

California, like other states, has been experiencing a shortage of healthcare workers, according to HealthcareDive. The situation became more acute as both nurses and doctors experience burnout from providing patient care at the height of the COVID-19 pandemic.

Gov. Gavin Newsom mentioned healthcare worker shortages during his budget reveal in mid-January. Sen. Brian Jones, Republican minority leader who represents a swath of San Diego County, also listed tackling healthcare worker shortages on his list of priorities for this legislative session during a panel discussion held by the Public Policy Institute of California last month.

California Gov Gavin Newsom announced Sunday the state has released $418 million in grants to deal with healthcare worker shortages.
California Governor's Office

"California is committed to ensuring people have the services they need and supporting the next generation of health care workers," Newsom said. "These crucial investments in our health care workforce and infrastructure build upon that commitment by strengthening our community partners, health care infrastructure, and continuing our work to bring the state's health care system into the 21st century."

This funding is essential as California works to address the behavioral health, mental health, and general health care needs of residents, according to a release from the governor.

The funding would be go to seven different agencies: $119 million to 98 organizations under the Department of Health Care Services to help local organizations build capacity and infrastructure in Medi-Cal's delivery system; $89 million to 78 organizations under the Department of Aging to further the state's commitment to growing a resilient caregiver workforce; $61 million across 53 counties to support behavioral health students and professionals; $59.4 million to 23 schools to support social work education; $49.6 million to support 17 new and expanded programs and create 87 new resident positions across California; $22 million to 75 community-based organizations and regional centers to improve equity, diversity and service access to Californians with development disabilities and $18 million to help students ages 18 and older to gain practical on-the-job experience in behavior health careers.

The largest grant awards released through DHCS are being made through its Capacity and Infrastructure, Transition, Expansion and Development (CITED) program. The thrust is to provide funding, tools, technical support, and resources to Medi-Cal providers, including community-based organizations, counties, Tribes, local governmental entities, and other community partners.

The funds will be used to increase the workforce providing healthcare to populations that have been underserved and to increase the number of healthcare providers that are able to serve Medi-Cal patients, according to a DHCS release. The money will also fund infrastructure and IT systems to support delivery of enhanced care management or community supports, developing plans to conduct outreach to historically under-resourced and/or underserved populations.

"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."

DCHS plans to announce another round of funding by next month and plans to provide $580 million in total funding through its CITED initiative.

Recipients of PATH CITED grants include cities, counties, local government agencies, Tribal entities, nonprofits, public hospitals, and others approved by DHCS.

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