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The State of California is leading an effort to modernize behavioral health, improve accountability, increase transparency, and expand the capacity of behavioral health care facilities, known as Behavioral Health Transformation. This effort will implement Proposition 1, which includes the Behavioral Health Services Act (BHSA) and the Behavioral Health Bond Act.
To keep our network of contracted providers informed, Behavioral Health Services (BHS) is sharing the update below on the implementation of BHSA and upcoming changes to contracted programs.
As has been shared with our provider network, BHS is assessing the impact of BHSA, which will be implemented per State requirements on July 1, 2026. To comply with new mandated funding, reporting, and outcome requirements under BHSA, BHS is rigorously assessing all existing services, regardless of funding source, from a systems-level perspective. This effort will ensure mental health and substance use services and supports are financially sustainable and align with our mandated responsibilities as a Specialty Behavioral Health Plan. As a result, significant changes are anticipated to occur, including the termination of programs that are no longer financially sustainable or aligned with key mandates.
BHS will be notifying individual providers on a rolling basis to inform them of any contracts that will terminate or for which option years will not be exercised in the lead up to the July 1, 2026, BHSA implementation date. Throughout this process, continuity of client care remains the highest priority.
For more information, please visit the County of San Diego Behavioral Health Services Act webpage, which includes a list of frequently asked questions.
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