Medi-Cal Capacity Grant Program

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Please Note: Applications for new projects are no longer being accepted (effective 1/22/20). Grantees with existing Capital Planning grants may still apply for Implementation grants in future application cycles based on their project timeline. Funding for Implementation grants is reserved for those entities with existing Planning grants; however, Implementation grants are not guaranteed and must be applied for separately.


The Alliance’s Capital Program provides funding to support the expansion, construction, renovation, and/or acquisition of health care facilities that will serve the growing Medi-Cal population in the Alliance service area of Santa Cruz, Monterey and Merced counties. Subject to compliance with the Alliance’s funding authority, the Alliance will also consider providing capital funding for the expansion, construction, renovation, and acquisition of facilities for purposes of expanding access to Medi-Cal services through transitional or permanent supportive housing for Alliance Medi-Cal members who are homeless, have a serious mental health illness and/or have multiple chronic conditions or other complex needs.

Eligible Applicants

To be considered for Capital Program funding, applicants must meet the minimum eligibility requirements for the Medi-Cal Capacity Grant Program (see Eligibility Guidelines) and meet the program-specific requirements below.

Planning and Implementation Applicants

Be a 501(c)(3) nonprofit or governmental entity that provides services to a significant volume of Medi-Cal members in the Alliance service area.
Be able to secure additional financial commitment to support the project from other sources such as donations, in-kind support, cash or documented loans or lines of credit, and/or other state, local or grant funding. See Funding Amount and Term section below for details on the percentage of project funding required.

Implementation Applicants

Demonstrate ownership of facility, a secured long-term lease agreement for the facility, or proposed funding for the acquisition of a facility with plans to operate the proposed site to serve Medi-Cal members for at least 10 years after completion of the project.
For transitional or permanent supportive housing projects, medical and/or social supportive services must be available to medically fragile Medi-Cal members with complex needs at the proposed site and be funded by sources other than Alliance grant programs.

Types of Funded Projects

The Alliance provides both planning and implementation grants that can be used to support project costs associated with the expansion, construction, renovation, or acquisition of facilities that provide health care services or transitional/supportive housing options for the Medi-Cal population as determined to be consistent with the Alliance’s funding authority. Preference will be given to applications that best demonstrate how capital expansion would increase access to care and support the Alliance’s funding goals.

All Medi-Cal Capacity Grant Program awards are one-time grants. Funding for ongoing maintenance and sustainability costs will not be considered. For the Capital Program, the Alliance will allow applicants receiving planning grants for pre-development activities to apply for follow-on implementation grants. Receiving a planning grant award is not a prerequisite for applying for an implementation grant. Applicants receiving planning grants are not guaranteed to receive implementation grants. A single entity is limited to Capital Program funding for planning and/or implementation for one site-specific project. Submission of planning and implementation applications in the same funding cycle is not encouraged.

Examples of projects that could be funded:

Planning for Capital Projects

Capital project business plan addressing the rationale, scope and viability of a proposed expansion.
Financial projections for proposed operations, including detailed staffing and patient revenue schedules, as well as projected financial statements. Projected operating budgets should include the additional costs related to building maintenance.
Documentation of legal fees rendered for specific pre-development planning.
Architectural design and drawings.
Permits required to implement capital project.

Implementation of Capital Projects

Construction or acquisition of new clinic sites to serve the Medi-Cal population (medical, behavioral health services and substance use disorder treatment facilities).
Expansion or renovation of existing health care facilities to serve additional Medi-Cal members (medical, behavioral health services and substance use disorder treatment).
Expansion, construction, renovation or acquisition of buildings that provide transitional or permanent supportive housing for medically fragile Medi-Cal members with multiple chronic conditions and other complex needs.

Funds can be used for capital expenditures only. Project budgets can include equipment and furnishings that are necessary for the delivery of care. Funds cannot be used for rental subsidies, operating costs or services. Funding will be considered for projects already in progress, however, activities completed or costs incurred prior to approval of the grant request by the Alliance will not be considered. An application may contain only one site-specific project. All project-related costs must occur or be used at the proposed site.

Funding Amount and Term

The Alliance will consider funding planning grants for up to 50% of total project costs, not to exceed a total grant of $150,000. The Alliance will consider funding implementation grants up to 75% of total project costs, not to exceed a total grant of $2,500,000. For implementation grants, applicants must demonstrate that the initial 25% of funding has been secured. A single entity is limited to Capital Program funding for planning and/or implementation for one site-specific project.

Capital grant awards will depend on the total number of applications received and amounts requested by each applicant.

Planning and implementation grants will be considered separately. Project timelines are defined from the date the project scope of work begins to the date of project completion. Project timelines for planning and implementation grants should not exceed 18 months per grant. Implementation grant awards will be paid in installments with the final installment distributed upon project completion. Progress and final reports are required and will be due to the Alliance every six months and at project completion.

Please note that Capital Implementation grant funding is reserved for those entities who are current Capital Planning grantees to apply for up to one year post Planning project completion; however, Implementation grants are not guaranteed.


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

Applications require submission of current fiscal statements. This includes Statement of Financial Position (i.e. balance sheet) and Statement of Activities (i.e. profit and loss). Audited financial statements for the past two completed fiscal years are also required (or rationale if not audited).


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