SENATE BILL 2493

WHAT IS PERFORMANCE BASED CONTRACTING?

Performance contracting requires results and rewards outcomes under a new finance model for residential, group home and independent living programs provided for children in need. Performance contracting results in better outcomes for kids via continued investment in programs when providers meet performance standards. In DCFS, performance contracting has been used successfully for a decade in foster care contracts.

WHY IS PERFORMANCE BASED CONTRACTING NEEDED FOR RESIDENTIAL TREATMENT?

Youth requiring residential programs present complex behavior challenges and clinical profiles that make it difficult to obtain personal and placement stability and develop skills for transitioning from structured settings to communities and families. The performance contracts will provide new opportunities to develop innovative programming that will continue to provide excellent clinical treatment while improving stability and transitions for kids in care. Long-term savings from lowered hospitalization costs can be reinvested in creating new services that help close treatment gaps and help sustain the benefits of treatment over time.

WHY IS SB 2493 NEEDED?

• With increased risk and new expectations in a performance contracting system, providers must obtain true costs of care when they are high performers. This bill appropriates additional funding for DCFS to fully implement the proposed performance contracting model in FY ’09.

WHAT DOES SB 2493 DO?

• Appropriates up to an additional $25 million in FY ’09 for DCFS to fund the performance-based contracts for residential, group homes, independent living and transitional living programs. This will assure all provider agencies receive at least the model funding rates and implement new transition expectations. It will provide the baseline for DCFS to finance service utilization.

 WHO WILL BENEFIT FROM THE PROPOSED LEGISLATION?

Young people who require residential treatment will benefit from greater stability, positive transitions to families and communities and innovative programming.

Chief Senate Sponsor: Dan Kotowski

CONTACT: Margaret Berglind

Child Care Association of Illinois

217-528-4409

ilccamb@aol.com