Rancho Cordova Clinic Seeks $7M Grant to Expand Mental Health Services

WellSpace Health asks city to redirect state funds to convert call center into outpatient treatment space

Published on Feb. 12, 2026

WellSpace Health, a nonprofit community clinic operator, is requesting that Rancho Cordova officials reassign a $7 million state behavioral health grant to its existing clinic on Old Placerville Road. The organization wants to convert call center space at the clinic into expanded outpatient mental health treatment facilities, which it says would add capacity and reduce wait times for local residents more quickly than waiting for a stalled project to restart.

Why it matters

The proposed clinic conversion aligns with the state's Behavioral Health Continuum Infrastructure Program, which aims to quickly expand outpatient and residential mental health treatment capacity in communities. If approved, the project could boost much-needed access to mental health services in Rancho Cordova, where demand has been rising.

The details

WellSpace Health, which operates a network of community clinics, is seeking to reassign a $7 million state grant originally awarded to a different Rancho Cordova project that has since stalled. The nonprofit wants to use the funds to convert office space currently used as a call center at its existing Old Placerville Road clinic into additional treatment rooms and expanded outpatient programming. WellSpace says this would allow it to add mental health services more quickly than waiting for the delayed project to restart.

  • In 2024, WellSpace Health earned CCBHC accreditation, which it says positions the nonprofit to manage an increase in behavioral health services.
  • On Wednesday, WellSpace filed paperwork with the city of Rancho Cordova requesting to reassign the $7 million state grant.

The players

WellSpace Health

A nonprofit community clinic operator that runs a regional network of clinics and earned CCBHC accreditation in 2024, positioning it to expand behavioral health services.

Rancho Cordova

The city where WellSpace Health's clinic is located and where officials must approve the request to redirect the $7 million state grant.

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What’s next

City review, along with any required state approvals, will determine whether WellSpace can start renovations and shift services at the Old Placerville Road clinic.

The takeaway

This proposal highlights the urgent need to expand mental health treatment capacity in communities like Rancho Cordova, and the creative ways that nonprofit providers are seeking to quickly redirect funding and repurpose existing facilities to meet this demand.