The California Department of Health Care Services has rescinded a $50 million grant for Escondido, Calif.-based Palomar Health’s planned acute psychiatric hospital, casting uncertainty over the project’s future, NPR and PBS affiliate KPBS reported Sept. 5.
Palomar Health was awarded the state funding in May through Proposition 1, which supports behavioral health infrastructure. The grant was pulled Aug. 18 after the system failed to meet matching fund documentation requirements, according to the report. The 120-bed Palomar Health Behavioral Health Institute broke ground in September 2024.
The state’s decision is not subject to appeal, according to the California Department of Health Care Services.
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