HAI outlines $196 million MBHRRP program to recruit and retain behavioral health practitioners

The Department of Health Care Access and Information (HAI) on a May informational webinar detailed the Medical Behavioral Health Recruitment and Retention Program (MBHRRP), a component of the BH Connect workforce initiative that will award up to $196 million in the program cycle to recruit and retain behavioral health practitioners who serve medical members and uninsured populations.

HAI Section Chief Angela Brandon presented the program’s goals and mechanics, saying MBHRRP will provide recruitment and retention bonuses, supervision support for pre-licensure and pre-certification practitioners, licensing and certification fee support and training-related backfill so organizations can recruit and retain staff to serve medical populations. "The medical behavioral health recruitment and retention program, or MBHRRP," Brandon said, is being staged as part of BH Connect and must comply with the federal Special Terms and Conditions (STC) tied to the waiver.

Why it matters: the BH Connect initiative, approved via a CMS 1115 demonstration waiver in December 2024, includes workforce investments intended to expand access and strengthen behavioral health services statewide. HAI said, in partnership with the Department of Healthcare Services (DHCS), that the state will invest up to $1.9 billion across five workforce programs between 2025 and 2029; MBHRRP is one of those programs.

Program dollars and award types: HAI said $196 million is available for the MBHRRP cycle. Program features outlined on the webinar include:
- Recruitment bonuses: up to $20,000 per practicing behavioral health practitioner (tiered service obligations: under $10,000 = 2 years; $10,000–$19,999 = 3 years; $20,000 = 4 years).
- Retention bonuses: up to $4,000 per practitioner (2-year service obligation).
- Student recruitment bonuses: up to $50,000 for students in their final year who commit to join the awarding organization after graduation (service-obligation tiers mirror recruitment bonuses).
- Licensing/certification fee support: up to $1,500 per practitioner (2-year obligation).
- Supervision support: up to $35,000 per organizational grantee per calendar year to hire, reassign or expand supervision for eligible practitioner types.
- Evidence-based-practice (EBP) training backfill: per-day backfill rates HAI cited as up to $750/day for licensed prescribers, $500/day for licensed non-prescribers and $250/day for non-prescribing behavioral health practitioners; HAI said those funds ultimately must reach practitioners and are described in the STCs and forthcoming grant guide.

Who can apply: MBHRRP is an organizational grant with an individual award component. Eligible applicants are provider organizations that meet one or more definitions of medical safety-net settings (examples HAI cited: federally qualified health centers; community mental health centers certified by the California Department of Public Health; rural health clinics; hospitals and other behavioral health settings meeting minimum Medicaid/uninsured payer-mix thresholds). HAI said sites with 40% or higher Medicaid and/or uninsured populations (30% for some rural hospitals) meet payer-mix thresholds; sites will be verified through MPI/NPI checks and other data sources during the organizational application.

How awards will be made and monitored: organizations apply for the organizational award first, then direct eligible individuals to apply through HAI’s portal. HAI will host the individual application to verify individual eligibility; organizations will select which eligible individuals receive funding and will be responsible for distribution, monitoring and reporting. HAI said it intends to provide annual upfront payments to organizations for calendar years 2027, 2028 and 2029, with reconciliation after each funding year. Organizations must monitor and enforce service obligations (up to four years in some cases); if an individual breaches an obligation, organizations must recoup funds from the individual and return funds to HAI if recovery is not possible. HAI emphasized that STC requirements mean MBHRRP funds cannot be used for organizational administrative costs and must go to practitioners.

Key operational points and clarifications from Q&A:
- BH Connect vs. the WE plan: Lindsay Bradshaw, a project manager at HAI, said the programs are separate; BH Connect is financed with both state and federal funds and is not the WE plan.
- Application and deadlines: HAI plans to open the organizational application on June 1, 2026, with a submission deadline of July 15, 2026; award notices are expected in October 2026 and grant agreements in November 2026; the individual application is planned for December 2026. A program launch webinar and additional guidance are scheduled for June 9, 2026.
- Existing service obligations: individuals with an active service obligation from other BH Connect awards or similar programs are not eligible to receive MBHRRP funds, HAI said.
- Employers’ role: organizations choose which eligible individuals to fund but must ensure recipients meet eligibility, full-time direct care definitions (32 hours/week or 30 hours/week in school settings) and service-obligation requirements.
- Administrative funds and TPAs: HAI said MBHRRP funds cannot be used for administrative costs and that counties may not use third-party administrators to distribute bonuses; funds must flow to provider organizations and then to practitioners.
- Tax and payment form: HAI declined to provide tax advice and recommended applicants consult tax professionals; HAI did not impose a blanket requirement about W-2 versus 1099 classification during the webinar.
- Verification: the organizational application will require MPI/NPI and payer-mix information; HAI’s portal will perform automated checks against CDPH and other data sources and may perform manual verification when needed.

Next steps: HAI repeated that the organizational application opens June 1, 2026 (application window through July 15), with an additional launch webinar on June 9 where HAI will provide more technical details and answer outstanding questions. HAI will post the webinar recording and slides on its website within 7–10 business days and publish a grant guide by the program launch.

Context and limitations: The MBHRRP is governed by federal STCs tied to the BH Connect waiver; HAI repeatedly stressed compliance with those STCs (notably that funds must be distributed to practitioners and cannot be spent on administrative overhead). Details that remain subject to final grant guidance or later clarification include whether some awards must be paid up front or may be paid after service completion and whether 1099 contractors will be treated differently; HAI said it will finalize those items in the grant guide and at the June 9 webinar.

The webinar concluded with contact instructions (email mbhrrp@hai.ca.gov), an invitation to join HAI’s mailing list and a reminder that organizations can find a shareable program flyer in the webinar resources.