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HomeWelfare and Institutions CodeDiv. 7Ch. 2Art. 7§ 7354 Mental Health Care Payments

§ 7354 Mental Health Care Payments

Welfare and Institutions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 7354 Mental Health Care Payments

Key Takeaways

  • •If someone has a mental health problem, the state can pay for their care in a licensed place, but not more than the average cost of care in state hospitals.
  • •The state can also pay for care in private places for people with mental health problems, but only if the care is reasonable and follows the same rules as the State Department of Health Care Services.
  • •The state won’t pay for care unless the local mental health director asks for it, and the county must pay 10% of the cost unless the county is too small or doesn’t participate in the program.

Example

A person with a mental health disorder needs care in a private facility after being discharged from a state hospital.

The state can pay for their care if it’s reasonable and follows the rules. The county where they live must ask for the care and pay 10% of the cost, unless the county is small or doesn’t participate in the program.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 7354 Mental Health Care Payments

(a) A person with a mental health disorder may be granted care in a licensed institution or other suitable licensed or certified facility. The State Department of State Hospitals may pay for that care at a rate not exceeding the average cost of care of patients in the state hospitals, as determined by the Director of State Hospitals. The payments shall be made from funds available to the State Department of State Hospitals for that purpose. (b) The State Department of State Hospitals may make payments for services for patients who have mental health disorders in private facilities released or discharged from state hospitals on the basis of reimbursement for reasonable cost, using the same standards and rates consistent with those established by the State Department of Health Care Services for similar types of care. The payments shall be made within the limitation of funds appropriated to the State Department of State Hospitals for that purpose. (c) No payments for care or services of a patient with a mental health disorder shall be made by the State Department of State Hospitals pursuant to this section unless the care or services are requested by the local director of the mental health services of the county of the patient’s residence, unless provision for the care or services is made in the county Short-Doyle plan of the county under which the county shall reimburse the department for 10 percent of the amount expended by the department, exclusive of the portion of the cost that is provided by the federal government. (d) The provision for the 10-percent county share shall be inapplicable with respect to a county with a population of under 100,000 persons that has not elected to participate financially in providing services under Division 5 (commencing with Section 5000) in accordance with Section 5709.5. (Amended by Stats. 2014, Ch. 144, Sec. 129. (AB 1847) Effective January 1, 2015.)

Last verified: January 23, 2026

Key Terms

state hospitalspatienthealthportlicensereleasedirectorthe state

Related Statutes

  • § 5328.05 Elder Abuse Information Sharing
  • § 5328.2 Patient Movement And Records
  • § 7354.5 Developmental Disability Care Payments
  • § 7357 Patient Discharge Authority
  • § 4043 Mental Health Research Leadership

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Welfare and Institutions Code. Section 7354.
View Official Source