The future of an acute psychiatric hospital planned for the North County is in question after Palomar Health lost a state grant for the project.

The California Department of Health Care Services (DHCS) is pulling $50 million for the Palomar Health Behavioral Health Institute project. The funding comes from , which sets money aside for behavioral health treatment facilities.

Palomar Health was for the "launch ready" project, but the grant has a matching fund requirement.

The grant was rescinded on Aug. 18 because "Palomar did not meet the match documentation requirements, which Palomar identified would be cash," DHCS said in a statement. "As a result, DHCS informed Palomar that its conditional award was rescinded for the Palomar Health Behavioral Health Institute project. The decision is

See Full Page