CalOptima Health Continues Accelerated Distribution of Reserve Funds, Announces $52.3 Million for Homeless Housing

ORANGE, Calif. (June 6, 2023) — To help overcome one of the greatest barriers in the homelessness crisis, CalOptima Health is allocating $52.3 million toward developing housing options for Orange County’s unhoused population. The Board of Directors recently approved this vital level of funding for permanent supportive housing along with an additional $11.5 million for system change projects and equity grants. Combined, a total of $63.8 million will be awarded to community organizations that propose impactful projects and innovative solutions to meet the objective of delivering better care for CalOptima Health members experiencing homelessness. 

Of the total investment in permanent supportive housing, $22.3 million comes from a Board-directed distribution of health plan reserves, and the balance is tied to CalOptima Health’s participation in the Department of Health Care Services’ Housing and Homelessness Incentive Program (HHIP). HHIP aims to prevent and address housing insecurity for Medi-Cal members by ensuring those experiencing homelessness have a clear path into housing and can access the services needed to remain housed. 

A new priority in CalOptima Health’s HHIP implementation is funding innovative and lasting system change projects that improve Orange County’s complex continuum of services for people experiencing homelessness. These efforts will also include a new program to educate and train nonprofit organizations on how to partner with health plans and others to build capacity. 

“CalOptima Health is determined to create permanent change that results in better health for our most vulnerable members. Our mission is to treat members with dignity and respect — and that starts with expanding their access to housing,” said Michael Hunn, CalOptima Health Chief Executive Officer. “Including this Board action, along with the $29.9 million allocated in March 2023, this brings CalOptima Health’s recent support for homeless health initiatives to $93.7 million.” 

In the coming weeks, CalOptima Health will issue a Notice of Funding Opportunity to collect proposals from organizations seeking to work on these projects. Interested parties can watch for an update here: caloptima.org/community-impact/initiatives/calaim-grants-funding

Since November 2021, CalOptima Health has dramatically accelerated its distribution of reserve funds, now totaling $788.8 million spent on programs across Orange County. Several major initiatives include:

• $153.5 million: Five-year hospital quality program
• $107.3 million: Post-COVID-19 supplemental payments to health networks, hospitals, and eligible providers
• $100.0 million: Digital transformation and workplace modernization strategy
• $62.4 million: Housing and Homelessness Incentive Program
• $50.1 million: Five-year comprehensive community cancer screening and support program
• $50.0 million: Provider Workforce Development Initiative
• $50.0 million: Five-year grant to community health centers
• $15.0 million: Be Well OC investment toward Irvine campus
• $15.0 million: Medi-Cal annual wellness visit initiative
• $10.0 million: Three-year skilled nursing facility access program
• $8.0 million: Street Medicine Program
• $8.0 million: CalFresh and Medi-Cal renewal outreach and engagement
• $5.0 million: Five-year National Alliance for Mental Illness peer support program
• $2.7 million: Allcove, a South Orange County mental health and wellness center
• $2.0 million: Two-year in-home care pilot program
• $1.0 million: Be Well OC grant for intake and admissions coordination
• $1.0 million: Medicare member incentive program

A county organized health system, CalOptima Health provides publicly funded health care coverage for low-income children, adults, seniors, and people with disabilities in Orange County, California. CalOptima Health’s mission is to serve member health with excellence and dignity, respecting the value and needs of each person. CalOptima Health serves nearly 986,000 members with a network of more than 9,500 primary care doctors and specialists and 45 acute and rehab hospitals.