Kaiser agrees to $200M settlement, must overhaul behavioral health care services

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Kaiser agrees to $200M settlement, must overhaul behavioral health care services
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Kaiser Permanente must overhaul behavioral health care services and pay a $50 million fine under a settlement agreement announced Thursday by the California Department of Managed Health Care.

Under the settlement, Kaiser will also make investments totaling $150 million over five years toward improving behavioral health care services.

The $50 million fine is the highest the state's managed health care agency has ever levied, said DMHC Director Mary Watanabe. The state agency found Kaiser Permanente canceled behavioral health appointments and, in many cases didn't give enrollees appointments that met timely access and clinical standards that were required despite a strike by mental health clinicians in August 2022.

The settlement was welcomed by the National Union of Healthcare Workers, which represents the more than 4,000 psychologists, social workers and marriage and family therapists employed by Kaiser Permanente in California. In a statement about the settlement on Thursday, Kaiser CEO Greg Adams said there has been "an unprecedented rise in demand for mental health care services over the past three years, largely driven by the global pandemic and its aftermath."

Kaiser has increased staffing and facilities, and since 2020, has invested an additional $1.1 billion to provide mental health treatment for members, Adams said.

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