Editor’s note: This story has been updated since its initial publication.
(The Center Square) – Community health and medical organizations throughout California are getting millions of dollars from the state, according to Gov. Gavin Newsom’s office.
A news release, issued Tuesday by the office, announced $145.5 million is going to 153 different organizations in 58 counties.
This is an effort to help health care providers expand access to health services, especially in low-income communities with historically underserved populations, according to the Governor’s Office.
“Care comes in many forms to meet many needs – and California is committed to providing that care,” Newsom said in Tuesday’s press release. “The awards announced today are part of our work to improve access to a more effective health care, to support locally-provided, tailored programs that meet the unique needs of each community across the state.”
However, the Pacific Research Institute, a Pasadena-based organization that advocates for free-market solutions, voiced some doubts about if the state funding will accomplish what it is meant to do.
“It is very unclear how this money is being spent. It’s not addressing the root issues in terms of what’s wrong with our health care system,” Wayne Winegarden, senior fellow and director of the Center for Medical Economics and Innovation at PRI, told The Center Square. “How much is this really going to change, and is this really going to improve care and improve access? We’re throwing more money at a system that’s not working well. It’s just not the best or most efficient way of getting to where we want, which is a more affordable and higher-quality health care system.”
The money is being distributed from an initiative called Providing Access and Transforming Health Capacity and Infrastructure, Transition, Expansion and Development, or PATH CITED. It is managed by the California Department of Health Care Services. This is the fourth and final round of funding, according to the Governor’s Office and the department.
The PATH initiative was first launched in 2022, according to Newsom’s office, and has awarded more than $1.6 billion to more than 2,200 organizations across the state in the last three years. The PATH initiative is meant to last until 2027, and it aims to improve health outcomes by distributing money to organizations that take Medi-Cal, California’s version of federal Medicaid benefits.
“PATH CITED represents a vital investment in the future of Medi-Cal and the health of California,” said Michelle Baass, the director of the Department of Health Care Services, in the department’s press release. “By empowering local providers, many of whom serve historically under-resourced communities, we are strengthening the foundation of a more equitable, person-centered delivery system.”
Baas and other officials with the Department of Health Care Services, which manages Medi-Cal, were unavailable for comment on Wednesday.
“We know that access matters,” Assemblymember Dawn Addis, D-San Luis Obispo and chair of the Assembly Budget Subcommittee on Health, wrote to The Center Square in an emailed statement. “This funding represents more than just dollars. This is a meaningful commitment to building an equitable, community-based system of care.”
Multiple other Democratic and Republican legislators in the State Senate and the Assembly The Center Square reached out to on Wednesday did not return requests for comment.
According to a report released last year by the department, the state invested $1.85 billion in various programs overseen by the PATH initiative.
“These funds acknowledge that health outcomes actually improve when community-based issues are addressed, such as housing issues, employment and economic equity,” said April House, the executive director of COMPACT, an Escondido-based nonprofit that helps youth in the San Diego area. “These funds will help us not only improve and expand our case management support, but we’ll be able to add to capacity of youth we’re able to support in the region.”
While COMPACT could not comment on how much money the organization will get in the latest round of PATH initiative funding, other organizations told The Center Square how much they would get. Beyond Blindness, a Tustin-based organization that helps visually impaired children, was allocated $299,000, according to an email the organization sent to The Center Square.
“Beyond Blindness will use PATH Funding to establish an Enhanced Care Management (ECM) program, including hiring and training a dedicated team, developing DHCS-compliant policies and procedures, and conducting outreach to identify and enroll eligible children,” wrote Devon Pfeil, the marketing director for Beyond Blindness. “This initiative strengthens Orange County’s safety net for families facing disability, poverty, and systemic barriers — ultimately improving health, education, and overall family well-being.”
The Center Square reached out to dozens of other organizations who are getting money from this latest round of PATH CITED funding on Wednesday, who did not respond before press time.
