California Offers $1.3 Billion in Health Care Worker Retention Bonuses

On June 30, 2022, California Governor Gavin Newsom signed the 2022–2023 state budget, which included a trailer bill, Senate Bill (SB) 184, with significant, long-term implications for health care providers, payers, and consumers.

In addition to establishing the Office of Health Care Affordability, SB 184 also establishes a fund for California health care worker retention bonuses. Payments are expected to be issued in January 2023, and the fund is expected to approach $1.3 billion.


Some key highlights of the bill are:

  • Each eligible health care employee and physician can receive a bonus of up to $1,500 for those who were employed at eligible facilities at least part-time between July 30 and October 28, 2022, and continued to provide on-site services on November 28, 2022.
  • The California Department of Health Care Services (DHCS) will be responsible for administering the bonus payments. Applications are due by December 21, 2022.
  • Applications for retention bonuses will be open to eligible employees and physicians of covered 24-hour care facilities, including hospitals, certain clinics and physician practices, and skilled nursing facilities.
  • Eligible facilities that employ physicians will be responsible for applying on the physicians' behalf according to DHCS’s website.
  • Facilities must register with the DHCS by December 21, 2022, then submit an application via the online portal, which opened on November 29, and will close December 30, 2022.

Eligibility and Applications

Registration is now open through December 21, 2022, with applications available through December 30, 2022.

Qualifying facilities—who must meet certain requirements—include:

  • Skilled nursing facilities
  • Health clinics
  • Acute care hospitals
  • Psychiatric hospitals
  • Physician organizations

Full and part-time employees who worked at eligible facilities during the required period from July 30–October 28, 2022, qualify.

For more information, including the specific eligibility requirements and details about the application process, contact DHCS.

We’re Here to Help

This is an important opportunity to help retain and reward critical health care workers. For additional information and assistance, contact your Moss Adams professional.

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