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.