Chapter 257 of the Acts of 2008
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Chapter 257 of the Acts of 2008 Provider Information & Dialogue Session: Family Stabilization Service Class December 8, 2009 www.mass.gov/hhs/chapter257. Session Objectives. In this session, EOHHS seeks to:

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Chapter 257 of the acts of 2008

Chapter 257 of the Acts of 2008

Provider Information & Dialogue Session:Family Stabilization Service Class

December 8, 2009

www.mass.gov/hhs/chapter257


Session objectives

Session Objectives

  • In this session, EOHHS seeks to:

    • Inform stakeholders regarding the EOHHS Chapter 257 implementation approach as it affects the Family Stabilization Service Class

    • Sharpen its understanding of key Family Stabilization program components to inform Chapter 257 rate setting

    • Provide a forum to discuss potential impact of rate setting and procurement timelines with individuals from organizations that currently provide Family Stabilization services.


Agenda

Agenda

  • Chapter 257 Implementation and Status Update

    • Infrastructure and Stakeholders

    • Service Classification System

    • Setting Rational Rates

    • Contract Reform

  • Overview of Family Stabilization Service Class

    • Definition and Overview of Involved Purchasing Department Programs

    • Procurement Plan

    • Timeline for Implementation

  • Purchasing Department Facilitated Breakout Sessions

  • Reporting Back and Concluding Discussion


Chapter 257 of the acts of 2008 regulates pricing for the pos system

Chapter 257 of the Acts of 2008 regulates pricing for the POS system.

  • Chapter 257 places authority for determination of Purchase of Service reimbursement rates with the Division of Health Care Finance and Policy.

  • Chapter 257 requires that DHCFP consider the following criteria when setting and reviewing human service reimbursement rates:

    • Reasonable costs incurred by efficiently and economically operated providers

    • Reasonable costs to providers of any existing or new governmental mandate

    • Changes in costs associated with the delivery of services (e.g. inflation)

    • Substantial geographical differences in the costs of service delivery

  • Some rates within the POS system do not reflect consideration of these factors.

  • Additional funding was not appropriated to finance any potential cost increases associated with the law.

  • The statute specifies a four year implementation timeframe.


Chapter 257 requires successful achievement of three strategies

2. Develop Reimbursement Methodology & Rates

FY09

Develop Implementation Plan

Develop Service Classes

Service Value

Statutory Requirement

~$230M

FY10

10% of system

FY11

30% of system

~$690M

FY12

30% of system

~$690M

FY13

30% of system

~$690M

Chapter 257 requires successful achievement of three strategies.

3. Reform Contracting

1. Create Service Classes

Establish new cross-Secretariat organizational and governance structure

  • Develop Service Class structure to group similar services & programs

  • Build out process & technology to manage codes & classes

  • Align activity codes to Service Classes

Maximize

  • Use of Master Agreements

  • Contracts w/ performance features

  • Contracts shared across departments

Enabling

  • Rate analysis and establishment

  • Contract consolidation across agencies

  • Improved reporting

Minimize

  • Number of different POS contracts

  • Cost reimbursement contracts


Family stabilization overview

Family Stabilization Overview

Service Class Definition:Programs that provide supports to enrolled individuals and families with the purpose of promoting stability, whether this involves preventing out-of-home placement, supporting transition between placements, or independent living. 

* DDS Family Support services (3176) will be discussed in a forum to be scheduled at a later date

** Subject to change given November 9(c) reduction impacts


The chapter 257 implementation plan is organized by newly defined pos service classes

The Chapter 257 Implementation plan is organized by newly defined POS Service Classes

  • Why were Service Classes Created?

    • DHCFP cannot meet the mandated schedule by setting specific rates for all of the individually procured services purchased throughout the POS system

    • Rate setting and procurement reform require an overall organizing structure for the classification of POS services

    • There were no Secretariat standards for categorizing or describing similar services within or across Departments. The use and functionality of MMARS codes vary widely from Department to Department– as a result, it is very difficult to report on the performance, costs, and volume of services delivered across EOHHS.

  • How were Service Classes Created?

Departments formed POS Service Classification Working Groups

Working groups met with the EOHHS POS Policy Office over the course of three months

Current POS Services Reviewed, Described, and Catalogued

EOHHS Suggested Service Groupings

Departments Verified / Modified and Developed Definitions

Current MMARS Codes were “Mapped” to New Service Classes


Chapter 257 of the acts of 2008

The new Service Classification System groups POS programs in cross-secretariat Service Classes.

  • The Service Classification System groups like POS programs together into “Service Classes”

  • Every Service Class is describes with standardized “Descriptors” and “Service Elements”.

  • Service Classes

  • A grouping of programs with similar cost drivers, general outcome purposes, and sometimes service populations

  • There are 32 Service Classes

  • Service Classes contain programs from one or more agencies

  • Descriptors

  • Standard characteristics that describe a Service Class: desired outcomes, populations served, and service delivery locations.

  • These allow for cross agency management and reporting for rate setting and contract reform.

  • ServiceElements

  • Defined “components” of a given program

  • Programs have multiple elements - not all programs within a Service Class have all the same elements

  • Service elements facilitate pricing & differentiate programs within a Service Class


The hcfp led cost analysis and rate setting effort has several objectives and challenges

The HCFP-led cost analysis and rate setting effort has several objectives and challenges.

Pricing Analysis, Rate Development, Approval, and Hearing Process

  • Objectives and Benefits

    • Development of uniform analysis for standard pricing of common services

    • Rate setting under Chapter 257 will enable:

      • Predictable, reimbursement models that reduce unexplainable variation in rates among comparable, economically operated providers

      • Incorporation of inflation adjusted prospective pricing methodologies

      • Standard and regulated approach to assessing the impact of new service requirements into reimbursement rates

    • Transition from “cost reimbursement” to “unit rate”

  • Challenges

    • (Extremely) fast paced timeline

    • Constrained resources for implementation

    • Cross system collaboration and communication

    • Data availability and integrity (complete/correct)

    • Coordination of procurement with rate development activities

Data Sources Identified or Developed

Provider Consultation

Cost Analysis & Rate Option Development

Provider Consultation

Review/ Approval: Departments, Secretariat, and Admin & Finance

Public Comment and Hearing

Possible Revision / Promulgation


In many cases contract reform is necessary to implement chapter 257

Providers

Purchasing Department

Purchasing Department

Purchasing Department

Purchasing Department

Purchasing Department

Purchasing Department

In many cases, contract reform is necessary to implement Chapter 257

Today

Vision for FY13

Providers

Dept

  • Secretariat Master Agreements

    • By Service Class

    • DHCFP rate schedules

Dept

Dept

Dept

Dept

Dept

Dept

  • Secretariat Master Agreements

    • Panel of qualified providers

    • Departments purchase via rate agreements

Dept

Dept

Dept

Dept

Dept

Dept

Dept

  • Thousands of individually negotiated contracts

  • Multiple contracts within and across departments with the same providers.

  • Services with core similarities purchased individually by agencies and regions

  • Low capacity for cross-agency coordination, performance assessment

  • Reduced contract complexity and redundancy

  • Greater amendment flexibility

  • Improved capacity for rate management

  • Streamlined, centrally-managed procurement cycles managed


Broader use of master agreements will simplify pos procurement and contracting processes

Broader use of Master Agreements will simplify POS procurement and contracting processes.

  • The “Master Agreement” is an existing, more flexible OSD purchasing and contract management framework.

  • For an MA, EOHHS or a purchasing department will issue one request for responses (RFR) with core requirements for multiple programs included in a single Service Class.

  • The RFR may also contain department or program-specific requirements that address unique purchasing or reporting needs of purchasing departments and/or subdivisions.

  • In responding to the EOHHS RFR, providers affirm their agreement and capability to meet the requirements specified by purchasing departments.

  • Competition for “Qualification” on the Master will be fair and open. Once they are qualified, providers can be engaged (at their option) by any department or division to deliver any services on the Master over the term of the procurement.

  • Master Agreement procurements will be re-opened and amended from time to time to add service models or seek qualification bids from new providers.

  • Under Chapter 257, DHCFP will establish and regulate rates on the Master.

  • A single Master Agreement will likely have a schedule of rates, reflecting the multiple services included in the Service Class.


Master agreements simplify management of the pos system for providers and departments

Master Agreements simplify management of the POS system for providers and departments.

  • Benefits to Providers:

    • Single bidding cycle for similar services

    • Bid once – engage many times under a single bid

    • Standard reporting formats

    • Rate transparency

    • Potential to engage with new purchasing Departments

  • Benefits to EOHHS Departments

    • Reduced procurement burden

    • Potential to expand pool of providers

    • Enable statewide coordination

    • Eliminate multiple procurements for the same service


Putting it all together how will this work

Putting it all together: How will this work?

Departments Form Service Class Strategy Teams

(Staffed by EOHHS)

Service Class Strategy Teams Work Through a Number of Considerations

Discussion of program strategies, content, trends and Department vision

Iterative proposal and review of procurement models and approaches to implemented contract and rate reform

Determine procurement plan and pricing approach

Pricing Analysis, Rate Development, Approval, and Hearing Process

Data sources identified or developed

Provider Consultation

Cost analysis & rate option development

Provider Consultation

Dept/EOHHS/ANF Review/ Approval

Public Comment and Hearing

Possible Revision / Promulgation

As necessary, RFR and Procurement Plan Developed (possible types of activities)

Program definitions / outcomes defined

Provider Consultation

RFR Development

Public Information Session

RFR Posting and Response

New Contracts Reference C.257 Rates


Provider session a agenda

Provider Session A Agenda

  • Chapter 257 Implementation and Status Update

    • Infrastructure and Stakeholders

    • Service Classification System

    • Setting Rational Rates

    • Contract Reform

  • Overview of Family Stabilization Service Class

    • Definition and Overview of Involved Purchasing Department Programs

    • Procurement Plan

    • Timeline for Implementation

  • Purchasing Department Facilitated Breakout Sessions

  • Reporting Back and Concluding Discussion


Family stabilization overview1

Family Stabilization Overview

Service Class Definition:Programs that provide supports to enrolled individuals and families with the purpose of promoting stability, whether this involves preventing out-of-home placement, supporting transition between placements, or independent living. 

* DDS Family Support services (3176) will be discussed in a forum to be scheduled at a later date

** Subject to change given November 9(c) reduction impacts


Procurement plan

Procurement Plan

  • Departments will procure these services independently and will use a Departmental Master Agreement contract wherever possible. This decision was based in part on the following issues:

    • Though provider overlap is strong at 85%, spending overlap is limited at only 59%.

    • DCF has an existing master agreement procurement in effect since 2006 and re-procurement is not necessary.

    • DMH will coordinate its Individual Support services with the Children’s Behavioral Health Initiative (CBHI).

  • DDS, DMH, and MCB procurement timelines will be coordinated with Chapter 257 rate adoption with a target for contract execution by Fall, 2010.


Planned timeline for implementation

Planned timeline for implementation


Provider session a agenda1

Provider Session A Agenda

  • Chapter 257 Implementation and Status Update

    • Infrastructure and Stakeholders

    • Service Classification System

    • Setting Rational Rates

    • Contract Reform

  • Overview of Family Stabilization Service Class

    • Definition and Overview of Involved Purchasing Department Programs

    • Procurement Plan

    • Timeline for Implementation

  • Purchasing Department Facilitated Breakout Sessions

  • Reporting Back and Concluding Discussion


Breakout sessions understanding family stabilization programs

Breakout Sessions: Understanding Family Stabilization Programs

  • Discussion of core program components, the range of needs of individuals and families involved, and how providers structure programs to achieve an array of outcomes.

    Questions for Providers:

    • How similar or different are intended outcomes among programs in this Service Class? What are the units of service?

    • What types of staff, intensity of staff, and other program components are necessary to achieve the intended outcomes in each program?

    • How do Family Stabilization services fit within the spectrum of the purchase of service system? Are there interdependencies between these services and services in a continuum of care?

    • What changes in services and business models do providers anticipate, if any, given potential changes in the service landscape?


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