HCAI and DHCS clarify funding eligibility amid oversubscription concerns

California's Department of Health Care Access and Information (HCAI) is set to implement a new Medi-Cal Behavioral Health Student Loan Repayment Program (SLRP) aimed at addressing the critical shortage of behavioral health providers in the state. During a recent webinar held on July 16, 2025, officials discussed the program's funding limitations and eligibility criteria, emphasizing the need for strategic prioritization in awarding funds.

The program is designed to attract and retain qualified professionals in the behavioral health sector, which has been facing significant workforce challenges. However, HCAI representatives noted that due to limited funding, not all eligible applicants may receive financial support. In the event of oversubscription, decisions on awards will be guided by factors such as geographic shortages and specific provider type needs.

Participants in the webinar raised questions about eligibility, including whether employment in for-profit settings qualifies for the program. Officials clarified that the program's terms do not differentiate between nonprofit and for-profit employment, allowing a broader range of applicants to benefit from the initiative.

This program represents a crucial step in bolstering California's behavioral health workforce, aiming to improve access to mental health services across the state. As the program rolls out, stakeholders will be closely monitoring its impact on addressing provider shortages and enhancing care for Medi-Cal beneficiaries.