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DHCS Updated ECM Policy Guide What the Three Encounter Benchmark Means for Providers

Published: October 27, 2026Last reviewed: October 27, 2026

Care team reviewing ECM encounter documentation at a computer Photo by LinkedIn Sales Solutions on Unsplash

[!NOTE] Quick summary: DHCS released an updated Enhanced Care Management Policy Guide on September 16, 2026. The Department says members enrolled in ECM should receive an average of three or more encounters per month and that MCP payment to ECM providers should reflect the intensity of services delivered. DHCS also expanded managed care plan oversight expectations and replaced quarterly implementation monitoring with streamlined monthly reporting.

The wording matters DHCS described an average service expectation, not a statewide rule that every member must receive exactly three billable or in-person visits each month. Providers should confirm encounter definitions, documentation standards, payment terms, and reporting specifications with each MCP.

What DHCS changed

DHCS highlighted three operational changes when it announced the revised guide:

  • Expanded MCP oversight covering program integrity, provider credentialing, network adequacy, timely member transfers, and utilization management.
  • A clearer service expectation that enrolled ECM members should receive an average of three or more encounters per month.
  • Payment arrangements that should reflect the intensity of ECM services delivered.
  • Retirement of the Quarterly Implementation Monitoring Report on August 14, 2026 and replacement with streamlined monthly ECM and Community Supports reporting.

Three encounters does not mean three identical visits

The announcement uses the term encounters. It does not say all three contacts must be in person, performed by the same employee, or billed as separate visits. ECM includes comprehensive care management, care coordination, health promotion, transitional care, member and family support, and referrals to community services. The appropriate mix depends on the member's needs, care plan, authorized model, and MCP contract.

Providers should resist two opposite mistakes. Counting any attempted phone call as a complete encounter may overstate service delivery. Requiring three long in-person visits for every member may create a rule that DHCS did not publish. Define the encounter categories with the MCP and document the service delivered, purpose, outcome, and follow-up.

Care team members talking together indoors Photo by Age Cymru on Unsplash

What providers should change now

  1. Measure the current baseline. Calculate encounters per enrolled member by month, population of focus, MCP, assigned care manager, and encounter type. Report the distribution, not only the organization-wide average.

  2. Plan contacts before the month starts. Schedule expected member contacts and care coordination tasks according to acuity, care plan needs, recent transitions, and open risks.

  3. Separate completed encounters from outreach attempts. Track no answer, declined contact, rescheduled contact, and completed service distinctly so managers can see both effort and delivered care.

  4. Standardize the service note. Require the member need or care plan goal, core ECM service, action taken, participants, result, next step, staff member, date, modality, and duration where contractually required.

  5. Review caseload capacity. Compare expected monthly encounters with staff hours, travel, documentation time, multidisciplinary meetings, leave, and no-show rates. Escalate capacity gaps before service quality falls.

  6. Review payment terms. Ask whether the current PMPM or other payment arrangement reflects the required service intensity, outreach burden, risk mix, and encounter submission work.

  7. Ask each MCP about reporting changes. Confirm whether the plan will revise provider files, templates, submission frequency, data fields, or correction timelines to support DHCS monthly reporting.

The monthly reporting change and provider responsibilities

DHCS says the Quarterly Implementation Monitoring Report was retired August 14 and ECM and Community Supports reporting will move to a streamlined monthly electronic format. The announcement describes reporting to DHCS at the MCP level. It does not announce a new statewide portal through which individual ECM providers submit directly to DHCS.

The provider impact will flow through managed care plans. MCPs may revise data feeds, encounter file expectations, reconciliation schedules, or provider reporting templates. Providers should request the specifications in writing and avoid rebuilding internal reports until a plan confirms the required fields and cadence.

A monthly supervisor dashboard

A useful dashboard should show:

  • Active enrolled members and days enrolled during the month.
  • Completed encounters per member, with zero, one, two, and three-plus bands.
  • Encounter modality and core ECM service delivered.
  • Outreach attempts that did not produce a completed encounter.
  • Members with hospitalization, discharge, housing crisis, or another event requiring intensified follow-up.
  • Late or incomplete notes, rejected encounters, and unresolved billing records.
  • Caseload and completed encounters by lead care manager.

What auditors and plans may examine

The expanded oversight language means providers should expect greater attention to whether documented activity matches member need, care plan goals, staffing capacity, billing, and encounter submissions. A count of three contacts is not enough if the notes are repetitive, lack an outcome, or do not show delivery of an ECM core service.

Providers should be able to trace each reported encounter to the member, authorization, assigned care team, service note, care plan goal, code or invoice record, and follow-up task. The same traceability helps resolve denials and plan data discrepancies.

Frequently asked questions

Does DHCS require exactly three ECM visits every month

DHCS says enrolled members should receive an average of three or more encounters per month. It did not state that every member must receive exactly three in-person visits or that a month below three automatically causes a denial.

Does every encounter have to be in person

The public summary does not say that. Providers should follow the current ECM Policy Guide, MCP contract, codes, member needs, and any applicable in-person service requirements.

Can an unsuccessful outreach attempt count as an encounter

Do not assume it does. Track outreach separately and confirm the MCP's encounter and payment definitions. DHCS has previously recognized outreach activity, but the three-encounter summary does not define unsuccessful outreach as a completed encounter.

Will providers submit monthly reports directly to DHCS

The announcement describes the reporting change at the MCP level. Providers should expect plan-specific instructions rather than assume a new direct DHCS submission requirement.

Does the update set a statewide ECM payment rate

No statewide rate was announced. DHCS says MCP payment should reflect service intensity, while actual provider payment terms remain governed by plan contracts and applicable law.

How CareAutomate can help

CareAutomate supports configurable care plans and forms, scheduling, case documentation, tasks, reminders, authorization tracking, and reporting workflows. These tools can help providers plan monthly contacts, distinguish outreach from completed services, monitor missing notes, and connect documentation to billing preparation. Book a demo using your current MCP workflow. We will confirm which capabilities are available today and what would require configuration or development.

Book a CareAutomate demo

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