The Brief

Hundreds of people living in Soul Housing recuperative care facilities across Los Angeles County are expected to be discharged this week after their health insurance plan ended its contract with the company, authorities said.

There appears to be no clear plan for where most of those residents will go next.

The likely mass exodus comes after health insurance plan Health Net terminated its contract with Soul Housing, which was — until recently — L.A. County’s largest recuperative care provider, with more than 1,300 beds across 16 facilities.

Recuperative care facilities are meant to provide medical stabilization and housing, often for people leaving hospitals who are too sick to be on the street. Soul Housing has provided that care through the state’s expanded Medi-CAL initiative, known as CalAIM.

Health Net officially ended the contract Tuesday — after giving Soul Housing four months' notice, the insurance plan told LAist.

Even as that deadline passed, Soul Housing and Health Net continued to disagree about who’s responsible for transferring the high-need residents elsewhere and preventing them falling into homelessness.

A Soul Housing representative told LAist on Tuesday that the organization believes it was the insurance company's responsibility.

“We are still awaiting Health Net's transition plan for affected members, and we hold out hope that a resolution can still be reached that will best serve this fragile population.”

But on Wednesday, as it began clearing out its remaining L.A. County facilities, Soul Housing representatives were no longer expecting Health Net to act.

“We wish we had been notified sooner of their decision not to provide continuity of care for the majority of their members here,” a company spokesperson said. “Soul Housing’s only priority remains the well-being of the Californians in our care.”

Health Net told LAist that most of its members still residing in Soul Housing facilities no longer were authorized to participate in the Medi-CAL program as of Tuesday. That means, according to the insurance company, it’s mostly up to Soul Housing to figure out what happens next.

“Any people staying without active authorizations for these programs are there at the discretion of Soul Housing,” said Beatriz Lopez, a spokesperson for Health Net.

Soul Housing said it is committed to helping residents without authorizations get access to other available Medi-CAL benefits, including housing navigation services, to find appropriate shelter. The company said it’s working to prevent displacements.

“We have already secured more than 100 safe placements for Health Net's remaining members and will continue to uphold our mission by working to connect every person to appropriate housing and support,” a representative said.

State and county response

As many as 500 recuperative care residents were expected to be discharged from at least three Soul Housing facilities beginning Wednesday, according to a company representative.

L.A. County’s Emergency Centralized Response Center helped with some relocations last month, county officials told LAist. They said the county will continue to place people discharged by Soul Housing into “appropriate” housing facilities “when available.”

Earlier this year, there were about 40 recuperative care facilities in L.A. County operated by 26 different organizations, according to the National Institute for Medical Respite Care.

Medi-CAL reimburses providers for recuperative care through the state’s CalAIM initiative, which in 2022 expanded coverage to include benefits like housing and meals. The state Department of Healthcare Services oversees the CalAIM program, but individual contractors like Soul Housing are overseen by the insurance provider.

Health Net contracts with more than 20 recuperative care providers in L.A. County.

In a statement Wednesday, a spokesperson from the Department of Healthcare Services told LAist Health Net is in compliance with provider termination requirements, which include notifying the department and submitting a transition plan to the agency.

“We are closely monitoring the situation to ensure that Medi-Cal members continue to have access to appropriate recuperative care services for which they are eligible and that any transitions are handled with minimal disruption to care,” spokesperson Tessa Outhyse said in a statement.

Health Net declined to answer questions from LAist about why the contract with Soul Housing was terminated.

Soul Housing claims it happened “without cause” and after Health Net delayed some payments because of a tech glitch that erroneously denied some claims. The insurance company told LAist the problem had been identified and is being fixed.

The state says Health Net and other health insurance companies are allowed to terminate contracts with their subcontractors for business reasons.

Recent Soul Housing closures 

Soul Housing said Wednesday morning that it's now operating three recuperative care facilities in L.A. County, down from 16. It closed down several facilities last month, including one 120-bed site in Van Nuys.

One former resident, Garrison Alecsaunder, told LAist he realized the site had been emptied after returning there from a hospital stay. Alecsaunder said a Soul Housing representative told him he could move to a facility in Gardena but did not provide any more information. He slept in a friend’s car at first.

On Wednesday, he was staying in the lobby of a hotel in Skid Row, he said.

Alecsaunder, who uses a walker and an oxygen tank, said he worries about recuperative care residents who use wheelchairs or have physical disabilities.

“You know, no options and no real warning, that's just, that's criminal to me, to put somebody with that much of a need out on the street with no help,” he said. “I mean, they had to know this was going on far before two or three days ago.”

Soul Housing also operates in Fresno but announced yesterday it was closing operations there, leaving 250 people in limbo.

Discharge notices issued in June 

Health Net notified Soul Housing in early June that it intended to terminate its contract 120 days later, both parties confirmed to LAist.

On June 11, Soul Housing delivered discharge notices to residents of at least one facility in Koreatown. The letters, signed by CEO Casey Reinholtz, informed residents they had three days to vacate the facility because Health Net denied their coverage.

Someone claiming to be a resident of a Soul Housing facility in Koreatown posted copies of the notices on Reddit, warning the public of the looming displacement of hundreds of disabled Angelenos. But that discharge didn’t occur on schedule, representatives from Soul Housing told LAist.

Instead, Soul Housing continued providing care to participants at its own expense, while working with Health Net to resolve the authorization issues, a spokesperson said.

A Soul Housing representative told LAist in June the organization had received notices from Health Net discontinuing authorization for many of its participants.

“We are working closely with Health Net around the clock to identify alternative care pathways for the affected members of our community,” the representative said. “While we are hopeful for a resolution soon, our priority is ensuring that no participant is left without support or recourse.”

This story first appeared on The LA Local.

Since 1977, Richard Santillan has been to every Opening Day game at Dodger Stadium. 

“The tradition goes from my father, to me, to my children and grandchildren. Some of my best memories are with my father and children here at Dodger Stadium,” Santillan told The LA Local, smiling under the shade of palm trees near the entrance to the ballpark Wednesday morning. He was there to protest the team less than 24 hours before Opening Day.

Santillan, like countless other loyal Dodgers fans, is grappling with his fan identity over the team’s decision to accept an invitation to the White House and owner Mark Walter’s ties to ICE detention facilities.

More than 30 people joined Santillan on Wednesday morning for a press conference held near 1000 Vin Scully Drive to convey a message directly to the team. 

“We are demanding the Dodgers stop participating in funding of inhumane treatment of families and do not go to the White House to celebrate with the criminal in chief,” Evelyn Escatiola told the crowd. “Together, we have the power to make a change.”

Escatiola, a former dean of East Los Angeles College and longtime community organizer, urged fans to flex their economic power by “letting the Dodgers know that we do not support repression.”

Jorge “Coqui” Rodriguez, a lifelong Dodgers fan, spoke to the crowd and called on Dodgers ownership to divest from immigration detention centers owned and operated by GEO Group and CoreCivic.

Jorge Coqui H Rodriguez speaks at a press conference outside Dodger Stadium on March 25, 2026, to demand the Dodgers not to visit the White House following their 2025 World Series win.

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J.W. Hendricks

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The LA Local

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In a phone interview a day before the protest, Rodriguez told The LA Local he did not want the Dodgers using his “cheve” or beer money to fund detention centers. 

“They can’t take our parking money, our cacahuate money, our cheve money, our Dodger Dog money and invest those funds into corporations that are imprisoning people. It’s wrong,” Rodriguez said. 

Rodriguez considers the Dodgers one of the most racially diverse teams and said the players need to support fans at a time when heightened immigration enforcement has become more common across L.A.

The team’s 2025’s visit to the White House drew ire from the largely Latino fan base, citing the Trump administration’s ongoing attacks on immigrants. 

In June, the team came under further scrutiny when rumors swirled online that federal immigration agents were using the stadium’s parking, which immigration authorities later denied in statements posted on social media accounts.

The team again came under fire after not releasing a statement on the impacts of ICE raids on its mostly Latino fan base at the height of immigration enforcement last summer. The team later agreed to invest $1 million to support families affected by immigration enforcement.

When he learned the Dodgers were pledging only $1 million to families in need, Rodriguez called the amount a  “slap in the face.” 

“These guys just bought the Lakers for billions of dollars and they give a million dollars to fight for legal services? That’s a joke,” Rodriguez said. “They need to have a moral backbone and not be investing in those companies.”

According to reporting from the Los Angeles Times, former Dodgers pitcher Clayton Kershawsaid last week that he is looking forward to the trip.

“I went when President [Joe] Biden was in office. I’m going to go when President [Donald] Trump is in office,” Kershaw said. “To me, it’s just about getting to go to the White House. You don’t get that opportunity every day, so I’m excited to go.”

The Dodgers have yet to announce when their planned visit will take place. 

Santillan sometimes laments his decision to give up his season tickets in protest of the team. His connection to the stadium and the memories he has made there with family and friends will last a lifetime, he said. On Thursday, he will uphold his tradition and be there for the first pitch of the season, but with a heavy heart.

“It’s a family tradition, but the Dodgers have a lot of work to do,” he said.

A local favorite mom-and-pop bookshop in Eagle Rock is facing displacement due to a steep rent hike. The owners say theirs is just one of several small businesses along Eagle Rock Boulevard struggling to keep up with lease increases.

Over the past 19 years, many in the neighborhood have come to love READ Books for its eclectic collection of used titles and shop dog Florence.

Co-owner Jeremy Kaplan said it’s been a delight to grow with the community over the years.

“Like seeing kids come back in, who were in grade school and now they’re in college,” Kaplan said.

But the building where Kaplan and wife Debbie rent was recently sold, and the rent increased by more than 130% to $2,805 a month, Kaplan said. He told LAist it was an increase his small business simply could not absorb.

Kaplan said he originally was given 30 days notice of the rent increase. After some research, assistance from Councilmember Ysabel Jurado’s office and some pro-bono legal help, Kaplan said he pushed back and got the 90-day notice he’s afforded by state law.

California Senate Bill 1103 requires landlords to give businesses with five or less employees 90 days’ notice for rent increases exceeding 10%, among other protections.

Systems Real Estate, the property management company, did not immediately respond to LAist’s request for comment.

What can small businesses do? 

Nadia Segura, directing attorney of the Small Business Program at pro bono legal aid non-profit Bet Tzedek said California law does not currently allow for rent control for commercial tenancies.

Outside of the protections under SB 1103, Segura said small businesses like READ Books don’t have much other recourse. And even then, commercial landlords are not required to inform their tenants of their protections under the law.

“There’s still a lot of people that don’t know about SB 1103. And then it’s very sad that they tell them they have these rent increases and within a month they have to leave,” Segura said.

She said her group is seeing steep rent hikes like this for commercial tenants across the city.

“We are seeing this even more with the World Cup coming up, the Olympics coming up. And I will say it was very sad to see that also after the wildfires,” Segura said.

Part of Bet Tzedek’s ongoing work is to advocate for small businesses, working with landlords who are increasing rents to see if they are willing to give business owners longer leases that lock in rents.

What’s next 

After READ Books posted about their situation on social media, commenters chimed in to express their outrage and love for the little shop.

While he looks for a new spot, Kaplan says he’s forming a coalition of local businesses and activist groups to see what can be done to help other small businesses facing similar displacement. He wants to address the displacement issue for businesses like his, which have made Eagle Rock the distinctive neighborhood that it is today.

Owl Talk, a longtime Eagle Rock staple selling clothing and accessories in a unit in the same building as READ Books, is facing a “more than double” rent increase, according to a post on their Instagram account.

Kaplan said he’s been in touch with the office of state Assemblywoman Jessica Caloza and wants to explore the possibility of introducing legislation to set up protections for small businesses like his, including rent-control measures or a vacancy tax for landlords. Kaplan said he also reached out to the office of state Sen. Maria Durazo.

By his count, Kaplan said there are about a dozen businesses within surrounding blocks that are at risk of closing their doors or have shuttered due to rent increases or other struggles.

When READ Books was founded during the Great Recession, Kaplan said he knew it was a longshot to open a bookstore at the same time so many were struggling to stay in business.

“It was kind of interesting to be doing something that neighborhoods needed. That was important to me growing up, that was important to my children, that was important to my wife growing up,” Kaplan said.

“And then somebody comes in and says, ‘We’re gonna over double your rent.”

Topline:

Frozen budget: Most of the city’s Bureau of Street Lighting budget comes from an assessment that people who own property illuminated by lights pay on their county property tax bill. The amount people pay depends on the kind of property they own and how much they benefit from lighting. A typical single-family home currently pays $53 annually, and in total, the assessments bring in about $45 million annually for the city to repair and maintain streetlights. Changing the amount the Bureau of Street Lighting gets from the assessment requires a vote among property owners who benefit from the lights.

Ballots: L.A. City Council’s vote gives city staff the green light to prepare and send out those ballots. Miguel Sangalang, who oversees the bureau, said at a committee meeting earlier this month that he expects to send out ballots by April 17. Notices about the ballots will be sent out prior to the ballots themselves.

Near unanimous vote: L.A. City Councilmember Monica Rodriguez was the only “No” vote Tuesday, saying she wanted to see a more current strategic plan for the bureau. Sangalang said the bureau developed a plan in 2022 that lays out how money will be spent. Councilmember Imelda Padilla was absent for the vote.

Vote count: Votes will be weighted according to the assessment amount. Basically, the more you’re asked to pay yearly to maintain streetlights, the more your vote will count. Ballots received before June 2 will be tabulated by the L.A. City Clerk.

How much more money: According to a report, the amount needed in assessments from property owners to meet the repair and maintenance needs of the city’s streetlighting in the next fiscal year is nearly $112 million.

Use of the money: Sangalang said at a March 11 committee meeting that the extra funds would be used to double the number of staff to handle repairs and procure solar streetlights, which don’t face the threat of copper wire theft. That would all potentially reduce the time it takes to repair simple fixes down to a week. Currently, city residents wait for months to see broken streetlights repaired. The assessment would come with a three-year auditing mechanism.