ODP Issues Details on Residential P4P for FY 2026/27

The Office of Developmental Programs (ODP) has released Announcement 26-039 and its accompanying attachment, detailing the Pay-for-Performance (P4P) initiatives under Performance-Based Contracting (PBC) for the 2026/27 fiscal year. These initiatives provide supplemental payments to eligible residential providers who meet or exceed specific performance benchmarks.

Providers of Residential Habilitation, Life Sharing, and Supported Living services provided through the Consolidated and Community Living Waivers that are assigned to the Primary, Select, or Clinically Enhanced tiers are eligible to participate.

P4P Initiative Areas:

Staff Credentialing: Focuses on stabilizing the workforce by incentivizing DSP and FLS credentialing.
Criteria: Providers must have 25–30% of DSPs and 45–50% of FLSs credentialed by December 31, 2026.
Payment: 0.3% of the prior calendar year’s residential revenue, paid in May 2027.
Rural Capacity Expansion: Supports increasing service capacity in designated rural counties.
Criteria: Development and approval of a Rural Capacity Expansion Plan with Administrative Entities (AE).
Payment: Tiered milestone payments (Planning: $10,000; Implementation: $15,000; Stability: $25,000).
Transition to Independent Living: Incentivizes moving individuals from licensed Residential Habilitation (4 or fewer people) to Life Sharing or Supported Living.
Payment: Two payments of $15,000 (totaling $30,000 per individual) based on successful transition and six-month retention.
Remote Supports: Allows providers to retain savings when utilizing remote supports while billing the daily fee schedule rate.

Important Deadlines:

Credentialing Data Submission: February 15, 2027 – March 15, 2027.
Rural Capacity Milestones: Submission deadlines vary by milestone (October 2026, January 2027, and April 2027).

Providers should review the detailed criteria in the ODP announcement attachment to ensure internal tracking systems are aligned with the required reporting metrics for 2026/27.

Questions can be directed via email.

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ODP Updates the MAAC on Paid Relative Caregiving & Travel Limitations

By Tim Sohosky • May 29, 2026

On Thursday, May 28, the Office of Developmental Programs (ODP) provided an update to the Medical Assistance Advisory Committee (MAAC) regarding current policies and upcoming regulatory changes following a recent Commonwealth Court decision. On February 17, 2026, the PA Commonwealth Court issued a decision in Dunkelberger v. Department of Human Services that determined that ODP’s limitations on provider model services (specifically the 40/60-hour caps and 90-day travel maximums) were null and void. The decision was based on process rather than policy validity; the Court found that these limitations were not properly promulgated as regulations in accordance with the Commonwealth Documents Law and Regulatory Review Act. To maintain a balanced approach between flexibility and oversight, ODP is moving forward with the following actions: Regulatory Amendments: ODP will amend regulations to establish formal authority for setting service delivery limits that support individual welfare and program integrity. Self-Directed Model Agreements: ODP has already modified agreements for self-directed models to clarify limits on overtime, combined relative service provision, and travel restrictions. Travel Restrictions: Due to the inability to monitor services effectively over long distances, service provision will now be limited to Pennsylvania and contiguous states. Waiver Changes: ODP will seek modifications through the amendment process to the Consolidated, P/FDS, Community Living, and Adult Autism Waivers to include: New requirements for agencies providing IHCS and Companion services to disclose a DSP's relationship to participants; and Strengthened programmatic oversight and integrity measures. Life Sharing Alternative: For participants requiring more than 60 hours of paid care from a relative, the Life Sharing (24/7) service model remains the recommended alternative. ODP anticipates a public comment period for these proposed waiver changes beginning in January 2027.

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ODP Provides Updates to PBC 2026/27 Residential Pay-for-Performance

By Cathy Barrick • May 28, 2026

The Office of Developmental Programs (ODP) has shared ODPANN 26-039 . The purpose of this communication is to provide updated details about the Residential Performance-Based Contracting (PBC) Pay-for-Performance (P4P) initiatives for Fiscal Year 2026/27. Updates are provided in red . Please review the announcement for more details. Visit here to access the Pay for Performance (P4P): Residential Rural Capacity Expansion Plan template .