Georgia Association of Homes and Services for Children   

History of Proposed Level of Care System
Intervention by CMS
Debundling of LOC

GAHSC
March 2008

  • 1998-Level of Care System proposed. Level of Care Taskforce, chaired by Abe Wilkinson, develops a Level of Care System. The Taskforce was made up of GAHSC, DHR, and DJJ personnel.

  • 1999-Peg Peter, State DFCS Director shepherded the work of the Level of Care Taskforce and further refines levels.

  • 2000-Changes in State DHR Leadership delays Level of Care efforts.

  • July 1, 2001 – Combination of rates delayed and changes from original cost reporting and rate setting methodologies, revitalized interest in Level of Care.

  • September 23rd – met with Jim Martin to clarify Department policy, update of prior efforts, and set tentative objective for future discussions regarding Level of Care.
    October 2001 – Public Policy Committee began work on formulation of response to per diems

  • November 2001 – GAHSC decides to negotiate with Department for systemic changes to reimbursement system

  • November to February 2002 – fourteen meetings with providers and DHR staff to formulate levels of care system and formulate fair and equitable per diems. Ada Cornwell provides leadership in development of Levels of Care Indicator Manual. GAHSC has four meetings with the Department Leadership to negotiate a fair system.

  • February 5, 2002 – GAHSC approves Levels of Care methodology and per diems for each level.

  • April 18, 2002 – Met with DHR budget office, State DFCS Office, Governor’s Office of Planning and Budget, and MATCH to discuss this year’s per diems and levels of care. From this meeting a plan of action was developed for presentation to membership. Also discussed was this year per diem adjustments. GAHSC was charged to develop a per diem adjustment to rectify the inequities of FY02. "Bridge Funding" was provided to 15 of 19 agencies that requested additional funding.

  • Summer, 2002 - GAHSC and DHR continue work on Level of Care descriptions. An indicator manual was developed with general consensus of providers. DHR Treatment Services Unit representatives reviewed random samplings of files of children in residential placements in order to assign levels and to take an initial snapshot of the placement and service needs of children in care.

Fall/Winter, 2002 – 2003

  • November, 2002 – a new Governor is elected, changing the political environment and raising questions regarding the future direction of the child welfare system in Georgia. A few updates and modifications were made to the Indicator Manual based on provider and TSU feedback, but no major changes made.

  • Fulton County becomes a pilot site for the Level of Care system in conjunction with the closing of the Delaney House and opening of the Fulton County Family Resource Center. GAHSC, private providers, and county and State leadership held meetings to develop an MOU for this pilot project. Agencies participating would receive a per diem based on the Level of Care of the child placed.

  • February, 2003- deadline for private providers to sign MOU with Fulton and Dekalb counties as part of pilot of the Level of Care system of placement. Regular meetings between GAHSC, private providers and Fulton County continue to be held. Representatives from Dekalb County and the Fulton Family Resource Center also participate.

  • January 2003 - The Governor supports LOC through his budget recommendation for FY04 budget.  Funding levels are still undetermined until a State Budget is passed. Treatment Services/Revenue Maximization staff visit providers and review files on children not reviewed last summer in order to determine appropriate Levels of Care. A target date for statewide implementation of the Level of Care system of placement is discussed for November 2003.

  • May 2003 - Implementation Workgroup for a Statewide rollout in November is began.  Representatives from providers and DHR and DJJ work out the many details for implementation. 

  • May 17, 2004 - DHR names a new Commissioner, B.J.Walker from Illinois. 

  • May 2005 - Concerns about the LOC financing strategy takes center stage.  The State Cost reports do not reflect the necessary treatment services to draw down expect Federal revenue.  Providers struggle under a methodology that is threatens to cut services to children and close many agencies.  Providers advocate for a "allowable cost" methodology.   

  • September 2005 - USHHS through CMS notifies DFCS their 1st Letter to DHR that they are at risk because of how Level of Care is funded through Medicaid.

  • August 16, 2005 - Mary Dean Harvey assumes head of State DFCS. 

  • October 2005 - DFCS modifies Level of Care rates to reflect increases to the higher levels of care. 

  • January 2006 - DFCS sends a letter to county directors to cut placements to Level of Care providers

  • March 2006 - DFCS develops a plan of correction to CMS.  DFCS informs providers of these changes.  DFCS recommends the "Debundling of Level of Care" and the move to "Room and Board and Watchful Oversight" with therapeutic services being done through "Home and Community Based Services".   DFCS would be about child protection and placement and Mental Health would be about treatment services paid for by Medicaid. 

  • August 2006 - B.J. Walker, Commissioner of DHR announces that Debundling will take place and CMS is giving the Department till June30, 2007 to complete this process in a memo to providers.

  • October 2006 - The number of children in LOC dramatically decreases as does spending as indicated in a chart  presented to the legislature. 

  • May 2007 - Over 45 agencies close as a result of freeze in funding, decreased number of foster children and increased capacity.

  • July 2007 - Room, Board and Watchful Oversight takes effect with new rates reflective of that no services will have mental health or behavioral health services included in "bundled" rate.  

  • August 2007 - DFCS Director, Mary Dean Harvey, requires all agencies to take children within their level of care in a memo.
     

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Updated by Normer Adams on 03/17/08 10:11 PM -0500                                  .