Medi-Cal Capacity Grant Program

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The Alliance’s Provider Recruitment Program provides funding to support health care organizations in their efforts to recruit and hire new primary care, specialty care, and behavioral health professionals that will serve the growing Medi-Cal population in Santa Cruz, Monterey, and Merced counties.

Eligible Applicants

To be considered for Provider Recruitment Program funding, applicants must meet the minimum eligibility requirements for the Medi-Cal Capacity Grant Program (see Eligibility Guidelines) and meet the following program-specific requirements:

Applicant organizations must be contracted with the Alliance/Medi-Cal and have a track record of contractual compliance and stability.
Applicants must agree to be open to existing and new Medi-Cal patients for a period of three years and increase their Medi-Cal capacity per provider type below if awarded a grant:
  ○ Primary Care Providers - Practice must agree to increase Medi-Cal capacity by at least 1,000 for newly recruited physicians and 500 for newly recruited non-physician medical practitioners funded through the Provider Recruitment Program. Capacity is the number of members the practice is willing to accept for linkage. The practice must also be open to Medi-Cal (up to capacity) for a minimum of three years.
  ○ Specialists/Behavioral Health/SUD/Allied Providers - Newly recruited provider must be open to Medi-Cal, with at least 25% of appointments allocated to Medi-Cal patients for a minimum of three years.
An applicant organization may apply for up to three Provider Recruitment grants per funding cycle. No more than three Provider Recruitment grants may be open for recruitment at any one time.

Types of Funded Recruitment Expenses

The Alliance will consider grant applications for funding to support recruitment-related expenses such as first year salary/benefit costs, sign-on bonuses, relocation expenses, costs of maintaining professional liability insurance, fees for professional recruitment agency services, costs associated with advertising, and loan repayment. Expenses deemed operational or training costs are not eligible for reimbursement.

Eligible Recruits

Stated below are the criteria to be reviewed by the Alliance for consideration of funding approval:

Eligible provider types include licensed primary care, specialty care, mental/behavioral health, substance use disorder (SUD) service, allied health and dental providers who provide Medi-Cal compensable services. This includes physicians, non-physician medical practitioners, and other appropriately licensed providers.
The recruited provider must be licensed in the appropriate medical specialty and meet all credentialing requirements.
The recruited provider must be a new addition to (not a transfer within) the Alliance/Medi-Cal network, with a preference for providers who are new to the medical communities of Santa Cruz, Monterey, and Merced counties.
Funding awards will be focused on specific provider types in targeted geographies based on need defined by the Alliance.
Recruitment demonstrating an effort to hire culturally and linguistically competent providers is strongly preferred.

Retro Hiring Period

An organization that recruits a provider on or after January 20, 2021 may apply for grant funding to cover recruitment-related expenses incurred prior to the application deadline of July 19, 2021. Recruitment-related expenses for providers recruited before January 20, 2021 are not eligible for this current round of grant funding. There is no guarantee that an application will be approved or that the entity will be reimbursed for recruitment-related costs during the period of January 2020 – July 2021. Recruitment date is determined by the date of hire (i.e. date on signed employment contract or offer letter).

Funding Amount and Term

The Provider Recruitment Program makes $22,000,000 available for recruitment of new providers in the Alliance service area. The Alliance will award grants to subsidize 50% of recruitment-related expenses. The maximum award is $150,000. Examples: Estimated total recruitment costs = $200K; Amount of grant request $100K. Estimated total recruitment costs = $300K; Amount of grant request $150K.

Half of the grant payment will be made at the time the grantee successfully hires an eligible provider and the remaining half when the provider is fully credentialed by the Alliance or the appropriate organization (e.g. Beacon Health Options or county mental health/behavioral health departments for mental health providers).

Organizations approved for Provider Recruitment grants must recruit the provider(s) within twelve months of signing the Grant Agreement. Documentation verifying date of hire, recruitment expenses and credentialing is required for payment requests and reporting purposes. Final grant awards will depend on verification of actual expenses but will not exceed the grant award.

If the grantee is unable to hire the provider within twelve months of the signing of the Grant Agreement, the grant will be withdrawn. If the newly recruited provider leaves the practice before one full year of employment under the term of the grant, the grantee will have to pay a pro-rated amount back to the Alliance.


Visit How to Apply for deadlines, instructions, and online application form.

Applications require submission of financial statements. Acceptable financial statement submissions include audited financial statements for the last fiscal year. If one is not available, an organizational profit and loss statement and balance sheet for the last 12 months is acceptable, with President/CEO/Executive Director sign-off verification.


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