Section 4-1 - Funding Availability (a) The Division Administrator shall establish an account for private residential treatment facilities and group homes.
(b) In order to keep the costs and projected fund availability for court ordered placements in private group homes and residential treatment facilities in balance throughout each fiscal year, the rate reductions shall be carried out whenever the Division of Public Assistance and Social Services determines that the projected costs of residential treatment facilities exceed the amount available in the account. - (i) Rate Reduction. The Division of Public Assistance and Social Services shall analyze historical data on past court ordered placements in order to project anticipated placements and expenditures in the remainder of the fiscal year. The Division shall then compute the percentage reduction of payment rates which would be necessary to bring the costs and projected fund availability into approximate balance. The rate reduction shall apply to all current and new placements until rate readjustment occurs.
- (ii) Account Monitoring and Notification. The Administrator or designee shall notify the private group homes and residential treatment providers having Division court ordered placements at that time of the percent reduction and advise them that they will receive thirty days notice of the termination of the present Division contracts. The Division will also notify all Division field offices and District Court Judges of the reduction.
- (iii) Change of Rates. The Division field offices which have contracts with private group homes and residential treatment providers will calculate the new rates following notification by the Division Administrator or designee. The calculation shall be made by multiplying the daily rate by the percentage determined by the Division, rounded to the nearest whole dollar. The field offices will mail contract termination notices as well as new contracts to providers within five working days after receiving notification of the reduction percentage. The change will be effective on the first calendar day of the first month following the expiration of the thirty-day notice.
- (iv) Rate Readjustment After a Rate Reduction. When the Division determines that projected fund availability has become greater than costs, the Division shall compute the percentage increase of payment rates necessary to bring the costs and projected fund availability into approximate balance. Rate readjustment shall not exceed the percent reduction made previously.
The Division Administrator or designee shall notify the private group homes and residential treatment providers having Division court ordered placements at that time of the percent increase and advise them that they have thirty days following notice of the contract termination of the present Division contracts. The Division will also notify all Division field offices and District Court Judges of the increase. The change will be effective on the first calendar day of the first month following expiration of the thirty day notice.
The Division field offices which have contracts with private group homes and residential treatment providers will calculate the new rates following notification by the Division Administrator or designee. The calculation shall be made by multiplying the daily rate by the percentage determined by the Division, rounded to the nearest dollar. The field offices will mail new contracts to providers within five working days after receiving notification of the increase. The change will be effective on the first calendar day of the first month following the expiration of the thirty-day notice.