Note: Under current law, if revenue under a contract for the provision of a
rate-based service exceeds allowable costs incurred in the contract period, the service
provider may retain from the surplus generated by that rate-based service up to 5
percent of the contract amount. Also under current law, a provider may accumulate funds
from more than one contract period except that, if at the end of the contract period the
amount accumulated from all contract periods for a rate-based service exceeds 10 percent
of the amount of all current contracts for that service, the provider must, at the request
of a purchaser, return to the purchaser the purchaser's proportional share of that excess
and use any of that excess that is not returned to a purchaser to reduce the provider's unit
rate per client for that service in the next contract period. If a provider has held for four
consecutive contract periods an accumulated reserve for a service that is equal to or
exceeds 10 percent of the amount of all current contracts for that service, the provider
must apply 50 percent of that accumulated amount to reducing its unit rate per client for
that service in the next contract period.
This Section exempts providers from the current law that limits the amount that
a provider may retain from the surplus generated by a rate-based service in a contract
period to 5 percent of the contract amount. This Section also permits DCF, upon request
of a provider, to grant an exception to the requirements that apply to a provider if the
amount of the surplus funds accumulated from all contract periods for a rate-based
service exceeds 10 percent of the amount of all current contracts for that service.
SB567, s. 2
1Section
2. 49.34 (5m) (em) of the statutes is amended to read:
SB567,5,92
49.34
(5m) (em) Notwithstanding par. (b) 1. and 2., a county department under
3s. 46.215, 51.42, or 51.437 providing client services in a county having a population
4of 500,000 or more or a nonstock, nonprofit corporation providing client services in
5such a county may not retain a surplus
under par. (b) 1. generated by a rate-based
6service or accumulate funds
under par. (b) 2.
from more than one contract period for
7a rate-based service from revenues that are used to meet the maintenance-of-effort
8requirement under the federal temporary assistance for needy families program
9under
42 USC 601 to
619.
Note: This Section clarifies that although under the bill providers are exempt
from s. 49.34 (5m) (b) 1., stats., and may be granted an exception from s. 49.34 (5m) (b)
2., stats., providers are still subject to s. 49.34 (5m) (em), which prohibits retaining a
surplus generated by a rate-based service or accumulating funds from more than one
contract period for a rate-based service from revenues that are used to meet the
maintenance-of-effort requirement under the federal Temporary Assistance for Needy
Families Program.
SB567, s. 3
10Section
3
. 49.343 (1d) (cg) of the statutes is created to read:
SB567,5,1311
49.343
(1d) (cg) "Performance-based contracting system" means a system of
12paying a provider for services based on the achievement of specified measurable
13outcomes.
Note: Sections 3 and 4 create definitions for "performance-based contracting
system" and "provider."
SB567, s. 4
1Section
4
. 49.343 (1d) (cr) of the statutes is created to read:
SB567,6,32
49.343
(1d) (cr) "Provider" means a residential care center for children and
3youth, a group home, or a child welfare agency.
SB567,6,136
49.343
(2) (b) (intro.) The department shall review a proposed rate submitted
7under par. (a) and audit the
residential care center for children and youth, group
8home, or child welfare agency provider submitting the proposed rate to determine
9whether the proposed rate is appropriate to the level of services to be provided, the
10qualifications of the
residential care center for children and youth, group home, or
11child welfare agency provider to provide those services, and the reasonable and
12necessary costs of providing those services. In reviewing a proposed rate, the
13department shall consider all of the following factors:
Note: This Section deletes "residential care center for children and youth, group
home, or child welfare agency" and substitutes "provider," which is defined in the bill as
a residential care center for children and youth, group home, or child welfare agency.
SB567, s. 6
14Section
6
. 49.343 (2) (b) 1m. of the statutes is created to read:
SB567,6,1815
49.343
(2) (b) 1m. Changes in the consumer price index for all urban
16consumers, U.S. city average, for the medical care group, as determined by the U.S.
17department of labor, for the 12 months ending on June 30 of the year in which the
18proposed rate is submitted.
SB567,6,2321
49.343
(2) (b) 5. Changes in service delivery proposed by the
residential care
22center for children and youth, group home, or child welfare agency
provider and
23agreed to by the department.
Note: This Section deletes "residential care center for children and youth, group
home, or child welfare agency" and substitutes "provider," which is defined in the bill as
a residential care center for children and youth, group home, or child welfare agency.
SB567, s. 8
1Section
8
. 49.343 (2) (b) 6. of the statutes is created to read:
SB567,7,32
49.343
(2) (b) 6. Whether the agency is accredited by a national accrediting
3body that has developed child welfare standards.
Note: Sections 6 and 8 add factors DCF must consider in reviewing a per client
rate proposed by a group home or an RCC or an administrative rate proposed by a child
welfare agency. Under Section 6
, DCF must consider changes in the consumer price
index for all urban consumers, U.S. city average, for the medical care group and whether
the provider is accredited by a national accrediting body that has developed child welfare
standards.
SB567,7,196
49.343
(2) (c) If the department determines under par. (b) that a proposed rate
7submitted under par. (a) is appropriate, the department shall approve the proposed
8rate. If the department does not approve a proposed rate, the department shall
9negotiate with the
residential care center for children and youth, group home, or
10child welfare agency provider to determine an agreed to rate. If after negotiations
11a rate is not agreed to, the department and
residential care center for children and
12youth, group home, or child welfare agency the provider shall engage in mediation
13under the rate resolution procedure promulgated by rule under sub. (4) to arrive at
14an agreed to rate. If after mediation a rate is not agreed to, the
residential care center
15for children and youth, group home, or child welfare agency may not provide the
16service for which the rate was proposed department shall order a rate for the service
17after considering the factors under par. (b). A provider may appeal the rate set by
18the department as a contested case under ch. 227 by filing with the department a
19request for a hearing within 30 days after the date of the order.
Note: This Section provides that DCF must order a per client rate for a group
home or an RCC or an administrative rate for a child welfare agency if the provider's
proposed rate is not approved by DCF and if DCF and the provider do not agree to a rate
after negotiations and mediation. Under this Section, a provider may appeal the rate
set by DCF as a contested case under ch. 227, stats., by filing a request for a hearing with
DCF within 30 days of the order.
SB567,8,53
49.343
(3) Audit. The department may require an audit of any
residential care
4center for children and youth, group home, or child welfare agency
provider for the
5purpose of collecting federal funds.
Note: This Section deletes "residential care center for children and youth, group
home, or child welfare agency" and substitutes "provider," which is defined in the bill as
a residential care center for children and youth, group home, or child welfare agency.
SB567,8,128
49.343
(4) (a) Standards for determining whether a proposed rate is
9appropriate to the level of services to be provided, the qualifications of a
residential
10care center for children and youth, group home, or child welfare agency provider to
11provide those services, and the reasonable and necessary costs of providing those
12services.
Note: This Section deletes "residential care center for children and youth, group
home, or child welfare agency" and substitutes "provider," which is defined in the bill as
a residential care center for children and youth, group home, or child welfare agency.
SB567,8,1715
49.343
(4) (c) Procedures for reviewing proposed rates, including
rate
16resolution procedures for
mediating an agreed to
ordering a rate when negotiations
17and mediation fail to produce an agreed to rate.
Note: This Section requires DCF to promulgate administrative rules for
reviewing proposed per client rates for group homes and RCCs and administrative rates
for child welfare agencies, including procedures for ordering a rate when negotiations and
mediation fail to produce an agreed to rate.
SB567, s. 13
1Section
13. 49.343 (5) of the statutes is created to read:
SB567,9,82
49.343
(5) Advisory committee. The secretary shall create an advisory
3committee under s. 15.04 (1) (c) consisting of representatives of purchasers; county
4departments; the department, in a county having a population of 500,000 or more;
5tribes; consumers; and a statewide association of private, incorporated family and
6children's social service agencies representing all groups of providers that are
7affected by the rate regulation process. The committee shall advise the department
8on all of the following:
SB567,9,99
(a) The development of administrative rules under sub. (4).
SB567,9,1110
(b) The implementation of rate regulation for providers as authorized under
11this section.
SB567,9,1312
(c) The identification of the measurements specified in sub. (6) (a) and the
13development of the payment levels specified in sub. (6) (a).
Note: This Section requires the secretary of children and families to create an
advisory committee and specifies the membership of the committee. Under the Section,
the committee is required to advise DCF on the development of administrative rules
relating to rate setting, the implementation of rate regulation for providers, and the
identification of performance-based measurements and payment levels that correspond
to the achievement of those measurements.
SB567, s. 14
14Section
14. 49.343 (6) of the statutes is created to read:
SB567,9,1815
49.343
(6) Performance-based contracting system. (a) For purposes of
16implementing a performance-based contracting system, the department, in
17cooperation with the advisory committee created under sub. (5), shall do all of the
18following:
SB567,9,2119
1. Identify measurements by which to evaluate the performance of providers
20in meeting both the goals for the children placed in their care and the goals for the
21out-of-home care system in this state and adjust, as needed, those measurements.
SB567,10,2
12. Develop payment levels that correspond to the achievement of the
2measurements identified under subd. 1. based on the assessed level of care of a child.
SB567,10,73
(b) By November 1, 2010, the department shall submit a report that outlines
4a plan for implementing a performance-based contracting system to the standing
5committee of each house of the legislature that is concerned with child welfare issues.
6The report shall describe the measurements identified under par. (a) 1. and the
7payment levels developed under par. (a) 2.
SB567,10,128
(c) Beginning on January 1, 2011, the department shall select a representative
9sample of providers and evaluate the performance of those providers in attaining the
10measurements identified under par. (a) 1. Based on that evaluation, the department,
11in consultation with the advisory committee created under sub. (5), shall adjust, as
12needed, those measurements by December 31, 2011.
SB567,10,1813
(d) Beginning on January 1, 2013, the department shall evaluate the
14performance of all providers in this state in attaining the measurements identified
15under par. (a) 1. Based on that evaluation, the department, in consultation with the
16advisory committee created under sub. (5), shall adjust, as needed, those
17measurements by December 31, 2013, and in subsequent years as determined
18necessary by the department.
Note: This Section requires DCF, for purposes of implementing a
performance-based contracting system, to identify measurements by which to evaluate
the performance of providers in meeting both the goals for the children placed in their
care and the goals for the out-of-home care system in this state and to adjust, as needed,
those measurements, in cooperation with the advisory committee created under this bill.
This Section also requires DCF to develop payment levels that correspond to the
achievement of those measurements based on the assessed level of care of a child.
In addition, this Section requires DCF, by November 1, 2010, to submit a report
that outlines a plan for implementing the performance-based contracting system to the
standing committee of each house of the legislature that is concerned with child welfare
issues. The report must describe the measurements identified and the payment levels
developed by DCF in cooperation with the advisory committee.
Note: Finally, this Section requires DCF, beginning on January 1, 2011, to select
a representative sample of providers and evaluate the performance of those providers in
attaining the measurements identified by DCF in cooperation with the advisory
committee. The Section also requires DCF, beginning on January 1, 2013, to evaluate
the performance of all providers in this state in attaining those measurements.