SENATE BILL 2505

WHAT IS PERFORMANCE BASED CONTRACTING?

Performance contracting requires results, and rewards outcomes under a new finance model for children who need residential, group home and independent living services. 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 2505 NEEDED?

• With increased risk and new expectations in a performance contracting system, providers must be reimbursed for the true costs of care when they are high performers. This bill will mandate that DCFS include sufficient funds in future budgets to cover the costs of care in a performance contracting system.
• Discrepancies occur in rate setting and program expectations when DHS, DJJ or ISBE require residential treatment in the same facilities. This bill will require all state agencies and providers to work to correct these discrepancies in future years. The benefits of DCFS performance contracting can then be extended to any child needing residential services from any state agency.

WHAT DOES SB 2505 DO?

• DCFS must provide sufficient funds to properly develop and finance the performance-based programs beginning in FY’10.
• DCFS, DHS, ISBE and DJJ must work together to set new performance based requirements and rates when they require residential treatment for children in their care. Provider agencies will be expected to work with those other state agencies to develop similar performance-based goals and outcomes.
• DHS, ISBE or DJJ must establish rates that are not less than the DCFS performance contracting rate when they require residential treatment for children in their care

WHO WILL BENEFIT FROM THE PROPOSED LEGISLATION?

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

CHIEF SENATE SPONSOR: Dan Kotowski CONTACT: Marge Berglind

217-528-4409