Justice-Involved Individuals Reentering Society in Sacramento County Find a Place to Call Home Through a $2.6M Grant from Health Net to 'Break the Cycle'

Rhea-AI Summary

Health Net (NYSE: CNC) has awarded a $2.6 million grant to Hope Cooperative in Sacramento County to support individuals exiting the criminal justice system. The initiative includes the purchase of a 59-room motel property for interim housing and provides comprehensive services including mental health care, substance use treatment, and employment guidance. The program aims to reduce recidivism rates, which currently show 66% of former inmates are re-arrested within three years and 82% within 10 years. Through California's CalAIM program, the organization will offer Enhanced Care Management and Community Supports services. This initiative is part of Health Net's broader community investment strategy, which has committed over $158 million to community-based organizations from 2017 to 2024.

Positive

• $2.6 million grant demonstrates significant financial commitment to community health initiatives
• Purchase of 59-room motel property provides substantial housing capacity for at-risk individuals
• Partnership with CalAIM program enhances service delivery and care coordination
• Part of larger $158 million community investment strategy (2017-2024)

Negative

• High recidivism rates (66% within 3 years, 82% within 10 years) indicate significant challenges in program success
• Interim housing nature of the program may not provide long-term stability
• Limited to Sacramento County region only

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Alongside housing, individuals receive primary care, mental health and substance use support, employment guidance and more personal services to help rebuild their lives

SACRAMENTO, Calif., June 3, 2025 /PRNewswire/ -- Health Net, one of California's most experienced Medi-Cal managed care health plans and company of Centene Corporation (NYSE: CNC), awarded a $2.6 million grant to connect individuals exiting the criminal justice system in Sacramento County to services that support a successful reentry into the community. The grant to Hope Cooperative connects individuals to interim housing and housing navigation, mental and behavioral health care, substance use disorder treatment, employment services and other critical resources.

Individuals reentering society after exiting a correctional facility often face significant barriers to getting the support they need, contributing to higher rates of recidivism. Research shows that 66% of people exiting the criminal justice system were re-arrested within three years, and 82% within 10 years. Through this grant, Health Net aims to help break that cycle by funding comprehensive, community-based support that helps individuals stabilize, reintegrate and thrive.

"A community thrives when people work together to reintegrate those seeking a second chance. This effort is about giving individuals a chance to be successful and 'break the cycle' so they can set a new path going forward," said Dorothy Seleski, Medi-Cal president at Health Net. "By caring for the whole person—from securing a roof overhead and job coaching to primary care and counseling—we're paving the way for healthier lives, fewer returns to incarceration, and stronger, more resilient neighborhoods."

Hope Cooperative purchased a 59-room motel property to be operated as an interim shelter for those at risk of homelessness after exiting the criminal justice system in Sacramento County. Through the state's California Advancing and Innovating Medi-Cal (CalAIM) program, the organization will offer Enhanced Care Management and Community Supports services that break down the traditional walls of health care, introducing a better way to coordinate care and provide high-need Medi-Cal members with in-person care management.

"Our work reflects the community's commitment to supporting justice-involved individuals as they transition toward stability and success. With 59 beds and comprehensive support services, it offers more than housing—it creates a real opportunity for healing, growth, and renewal," said April Ludwig, chief executive officer at Hope Cooperative. "Made possible through partnerships with Anthem, Health Net, Kaiser, Molina and Sacramento County Behavioral Health Services, and supported by a Behavioral Health Bridge Housing grant, this project shows what's possible when we come together with compassion and purpose."

"Helping individuals rebuild their lives as they transition out of the criminal justice system is more than a responsibility; it's a chance to create meaningful change that ripples through entire communities," said County of Sacramento Supervisor Rich Desmond. "Providing support during reentry isn't just about services; it's about offering hope, building resilience, and paving the way for lasting transformation. This grant from Health Net reflects the shared belief that when we invest in people, we invest in stronger, brighter futures for all."

From 2017 to 2024, Health Net committed more than $158 million in funding to community-based organizations, including in Sacramento County. Most recently, Health Net awarded a grant to Saint John's Program for Real Change to support housing assistance-related initiatives for women and children in crisis. 

To learn more about Health Net's local commitments, visit www.bridgingthedivideca.com.

About Health Net
Founded in California more than 45 years ago, Health Net, LLC ("Health Net"), a company of Centene Corporation, believes that every person deserves a safety net for their health, regardless of age, income, employment status or current state of health. Today, we provide health plans for individuals, families, businesses of every size and people who qualify for Medi-Cal or Medicare. With more than 117,000 of our network providers, Health Net serves more than three million members across the state. We also offer access to substance abuse programs, behavioral health services and managed healthcare products related to prescription drugs. We make these health plans and services available through Health Net and its subsidiaries: Health Net of California, Inc., Health Net Life Insurance Company and Health Net Community Solutions, Inc. These entities are wholly owned subsidiaries of Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to transforming the health of the communities we serve, one person at a time. Health Net and Centene Corporation employ more than 5,700 people in California who work at one of five regional Talent Hub offices. For more information, visit www.HealthNet.com.

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SOURCE Health Net

FAQ

What is the value of Health Net's (CNC) grant for justice-involved individuals in Sacramento?

Health Net awarded a $2.6 million grant to Hope Cooperative to support individuals exiting the criminal justice system in Sacramento County.

How many rooms does the Hope Cooperative facility provide for former inmates in Sacramento?

Hope Cooperative purchased a 59-room motel property to serve as interim shelter for those at risk of homelessness after exiting the criminal justice system.

What services does Health Net's (CNC) reentry program provide in Sacramento?

The program provides interim housing, housing navigation, mental and behavioral health care, substance use disorder treatment, employment services, and other critical resources.

How much has Health Net invested in community-based organizations from 2017 to 2024?

Health Net has committed more than $158 million in funding to community-based organizations from 2017 to 2024.

What are the recidivism rates for former inmates mentioned in Health Net's program?

According to the press release, 66% of people exiting the criminal justice system are re-arrested within three years, and 82% within 10 years.