RCPA - Rehabilitation and Community Providers Association


OMR Writes Draft Rate Setting Bulletin
December 30, 2002

As promised, the Office of Mental Retardation (OMR) has drafted a bulletin intended to guide counties in the development of a prospective rate setting methodology for Person/Family Directed Supports waiver services during the one year trial period of Fiscal Year 2003-04. There will still be cost settlement during this period. The draft bulletin, Interim Prospective Rate Setting Guidelines for Fiscal Year 2003/2004, also contains information about modifications made to the Chapter 4300 regulations.

Counties will be able to either set rates or negotiate rates with providers. Rates set by counties will be a maximum rate by services for the entire county program. Rates negotiated with providers can vary by provider, by site and by services. If a county chooses to use prospective rate setting without cost settlement in 2003/04, they must submit a waiver request to OMR.

Many of the provisions discussed in the PCPA paper, 4300s for Transformation, are included in this bulletin. The sections of the 4300s which will be modified or replaced are:

  • Section 4300.83 - Compensation
  • Section 4300.87 - Occupancy
  • Section 4300.94 - Agency indirect costs
  • Section 4300.108 - Retained revenue

Executive Compensation has new guidelines, including the use of IRS 990 reports on Guidestar and a maximum allowable salary equal to the salary of the Secretary of Public Welfare. General administrative costs included in rates will be 13% statewide and shall not require county approval. Retained revenue included in rates can be up to 3% of allowable costs and does not require county approval. The rolling 5% retained revenue provision is also included. Start-up grants are defined and may be made only for the purpose of funding non-recurring costs.

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