2007-10-31 cans conference final
TRANSCRIPT
The Buddin Praed Foundation & The Massachusetts Department of Social Services
F o u r t h A n n u a l C A N S C o n f e r e n c e
A Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare
Treatment for Children and Families
Wednesday October 31, 2007Marriot Copley Plaza, Boston
Presented by:Christopher Marics & Alan Vietze
2The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Purpose of this Presentation1. To define a needs based approach to fair market rate setting
2. To explain how using this approach is different from approaches used in traditional child serving systems
3. To describe how using a needs based approach is consistent with the fundamental principles of System of Care reform
4. To describe the methodology we employed in real-life examples of using a needs based approach to develop and implement fair market rates in a large system of care
5. To discuss lessons learned in the process including: successes, pitfalls and unintended benefits
1. To define a needs based approach to fair market rate setting
2. To explain how using this approach is different from approaches used in traditional child serving systems
3. To describe how using a needs based approach is consistent with the fundamental principles of System of Care reform
4. To describe the methodology we employed in real-life examples of using a needs based approach to develop and implement fair market rates in a large system of care
5. To discuss lessons learned in the process including: successes, pitfalls and unintended benefits
3The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
What is a “needs-based approach to setting fair market rates”?
A rational and data-based methodology for calculating a reasonable and fair price for a unit of service that appropriately prioritizes and balances the needs of the three primary stakeholders in the service delivery system:
• The child and family’s need for high quality clinical treatment that is affordable, effective, acceptable and accessible
• The treatment providers’ need to deliver required services while sustaining their organization, its employees and their families
• The funders’ need to maximize the impact of their service purchasing power, contain costs and realize benefits
A rational and data-based methodology for calculating a reasonable and fair price for a unit of service that appropriately prioritizes and balances the needs of the three primary stakeholders in the service delivery system:
• The child and family’s need for high quality clinical treatment that is affordable, effective, acceptable and accessible
• The treatment providers’ need to deliver required services while sustaining their organization, its employees and their families
• The funders’ need to maximize the impact of their service purchasing power, contain costs and realize benefits
4The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
• Rational means that the process must “make sense,” i.e. be based on logical assumptions, be transparent, be readily documented and treat all stakeholders fairly
What is a “needs-based approach to setting fair market rates”?
• Data based means that the process must maximize the use of legitimate, widely accepted and preferably empirical data obtained from third-party sources, i.e. sources other than stakeholders in the process
• Reasonable and fair mean that the output of the process, i.e. the rates it yields, must pass the “face validity” test: do they seem to be likely to cover the costs of the services they’re designed to purchase
• Prioritizes and balances the needs we’ll explain these terms on upcoming slides.
• Child and family’s need for high quality clinical treatment means that the process should focus on developing rates for purchasing genuine and authentic professional clinical treatment as well as non-clinical structured supervision and other interventions traditionally delivered by para-professionals
• Affordable, effective acceptable and accessible means that the process should focus on setting rates that will purchase services that minimize direct costs to the family, produce genuine improvements for them, are sensitive to their family dynamics and cultural needs, and are available to them at hours and locations that fit into their schedules and are as close to home as possible.
5The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
What is a “needs-based approach to setting fair market rates”?
• The treatment providers’ need to deliver required services while sustaining their organization, its employees and their families means that the process must take into account the legitimate business needs of the providers to keep their organizations solvent and to pay marketable salaries to their employees, many of whom are supporting families of their own.
• The funders’ need to maximize the impact of their service purchasing power, contain costs and realize benefits means the process must take into account the funders’ need to serve as many children and families as possible at the least optimal amount of cost and to achieve real, discernable benefits.
6The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Children & FamiliesObtain convenient and high quality clinical treatment that addresses
their needs
Potentially Conflicting Stakeholder Needs
ProvidersMeet the families needs while paying marketable
salaries and keeping their organization solvent
FundersServe as many children and families as possible
for as little cost as possible
7The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Reformed Systems of Care
Traditional Child Serving System vs. Systems of Care
Historical Child Serving Systems
Funders’ Needs
Providers’ Needs
Child & Family
Needs
• Variable rates for seemingly comparable services• Vaguely defined services
• Little or no family input into services
• Limited group of historical providers• Legacy annually renewed cost-based contracts
• Access and quality problems
Top Priority
Unbalanced Weight
Child & Family Needs
Providers’ Needs
Funders’ Needs
Top Priority
Typical Characteristics
Equal Weight
• Fair, market-based rates for a “menu” of standard, family requested & clearly defined clinical treatment services
• Continuous family input into services
• An expanded group of legacy and new providers• Flexible fee for service or performance based contracts
• High quality, culturally competent, accessible services
Expected Characteristics
System of Care Reform Process
8The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Reformed Systems of Care
Child & Family Needs
Providers’ Needs
Funders’ Needs
Top Priority
Equal Weight
• Fair, market-based rates for a “menu” of standard, family requested & clearly defined clinical treatment services
• Continuous family input into services
• An expanded group of legacy and new providers• Flexible fee for service or performance based contracts
• High quality, culturally competent, accessible services
Expected Characteristics
Is this Consistent with System of Care?
9The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Is this Consistent with System of Care?Reformed Systems of Care
Child & Family Needs
Providers’ Needs
Funders’ Needs
Top Priority
Equal Weight
• Fair, market-based rates for a “menu” of standard, family requested & clearly defined clinical treatment services
• Continuous family input into services
• An expanded group of legacy and new providers• Flexible fee for service or performance based contracts
• High quality, culturally competent, accessible services
Expected Characteristics
Stroul & Friedman’s 1986Core Values of System of Care
Child Centered & Family Driven
Community Based
Culturally Competent
10The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Is this Consistent with System of Care?Reformed Systems of Care
Child & Family Needs
Providers’ Needs
Funders’ Needs
Top Priority
Equal Weight
• Fair, market-based rates for a “menu” of standard, family requested & clearly defined clinical treatment services
• Continuous family input into services
• An expanded group of legacy and new providers• Flexible fee for service or performance based contracts
• High quality, culturally competent, accessible services
Expected Characteristics
Stroul & Friedman’s 1986Core Values of System of Care
Child Centered & Family Driven
Community Based
Culturally Competent
Definition:Child Centered and Family Driven means that the needs of the child & family dictate the types & mix of services provided.
11The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Is this Consistent with System of Care?Reformed Systems of Care
Child & Family Needs
Providers’ Needs
Funders’ Needs
Top Priority
Equal Weight
• Fair, market-based rates for a “menu” of standard, family requested & clearly defined clinical treatment services
• Continuous family input into services
• An expanded group of legacy and new providers• Flexible fee for service or performance based contracts
• High quality, culturally competent, accessible services
Expected Characteristics
Stroul & Friedman’s 1986Core Values of System of Care
Child Centered & Family Driven
Community Based
Culturally Competent
Definition:Community Based means that the locus of services as well as management & decision making responsibility rests at the community level.
12The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Is this Consistent with System of Care?Reformed Systems of Care
Child & Family Needs
Providers’ Needs
Funders’ Needs
Top Priority
Equal Weight
• Fair, market-based rates for a “menu” of standard, family requested & clearly defined clinical treatment services
• Continuous family input into services
• An expanded group of legacy and new providers• Flexible fee for service or performance based contracts
• High quality, culturally competent, accessible services
Expected Characteristics
Stroul & Friedman’s 1986Core Values of System of Care
Child Centered & Family Driven
Community Based
Culturally Competent
Definition:Culturally Competent means that agencies, programs, & services are responsive to the cultural, racial & ethnic differences of the populations they serve.
13The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Is this Consistent with System of Care?Reformed Systems of Care
Child & Family Needs
Providers’ Needs
Funders’ Needs
Top Priority
Equal Weight
• Fair, market-based rates for a “menu” of standard, family requested & clearly defined clinical treatment services
• Continuous family input into services
• An expanded group of legacy and new providers• Flexible fee for service or performance based contracts
• High quality, culturally competent, accessible services
Expected Characteristics
Stroul & Friedman’s 1986Core Values of System of Care
Child Centered & Family Driven
Community Based
Culturally Competent
Yes Yes YesYes Yes YesYes Yes YesYes Yes YesYes Yes Yes
14The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Is this Consistent with System of Care?Reformed Systems of Care
Child & Family Needs
Providers’ Needs
Funders’ Needs
Top Priority
Equal Weight
• Fair, market-based rates for a “menu” of standard, family requested & clearly defined clinical treatment services
• Continuous family input into services
• An expanded group of legacy and new providers• Flexible fee for service or performance based contracts
• High quality, culturally competent, accessible services
Expected Characteristics
Stroul & Friedman’s 1986Core Values of System of Care
Child Centered & Family Driven
Community Based
Culturally Competent
Yes Yes YesYes Yes YesYes Yes YesYes Yes YesYes Yes Yes
A needs based approach to rate setting permits maximum flexibility in the funding mechanism allowing community providers
to customize service packages to the specific needs of the child and family.
15The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Needs Based Rate Setting Methodology
Determine appropriate clinical interventions and settings for identified needs using available “best practices” information.2
Analyze all available data to determine the current and anticipated needs of children served by the system of care.1
Determine the appropriate provider credentials for each inter-vention and the amount of time needed to deliver it.3Use market-based compensation data to quantify the cost of each of the interventions 4Use market-based data to add in overhead and room and board costs (for residential treatment)5
Use a standard formula to calculate rates for services6
• Twenty-six workgroup meetings over the course of one year
• Participants included representatives from all stakeholder groups
• Six-step process as follows:
Mos
t Tim
e S
pent
●
●
Chi
ld &
Fam
ily N
eeds
Prio
ritiz
ed
Pro
vide
r Nee
ds R
epre
sent
ed
Fund
er N
eeds
Rep
rese
nted
Em
piric
al
Dat
a U
sed
16The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Data Sources
Data Sources Used
Determine appropriate clinical interventions and settings for identified needs using available “best practices” information.2
Analyze all available data to determine the current and anticipated needs of children served by the system of care.1
Determine the appropriate provider credentials for each inter-vention and the amount of time needed to deliver it.3Use market-based compensation data to quantify the cost of each of the interventions4Use market-based data to add in overhead and room and board costs (for residential treatment)5
• CANS data• Children and family input 1
1 Obtained through local family and youth support organizations
• CALOCUS2*• Consults with families & providers
• CALOCUS• Consults with families & providers
• Salary.com*• US Bureau of Labor Statistics*
• Better Business Bureau3*• US Department of Agriculture4*
2 Child and Adolescent Level of Care Utilization System (CALOCUS) v. 1.5 published by AACAP and AACP
3 Standards for Charity Accountability published by the Better Business Bureau’s Wise Giving Alliance
4 Expenditures on Children by Families, published annually by the USDA Center for Nutrition Policy and Promotion
*Accessible on line
17The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Six factors were indicated in the CALOCUS and had to do with the treatment environment rather than the child
Twelve of these factors were revealed in the CANS data and were child specific. We referred to these as “Constellations of Need”
Child Specific Factors“Constellations of Need”
A. Needs1. Developmental
2. Emotional
3. Behavioral
4. Substance Use
C. Age
8. 6 to 9
9. 10 to 12
10. 13 and 14
11. 15 and 16
12. 17 to 21
B. Risk
5. High Risk Behaviors
6. No High Risk Behaviors
7. No Risk Behaviors
Treatment Environment Factorsas derived from CALOCUS
D. Treatment Intensity
13. High
14. Moderate
15. Low
E. Restrictiveness
16. High
17. Moderate
18. Low
Our analysis of the CANS and CALOCUS data indicated that eighteen factors had to be considered in developing treatment interventions appropriately calibrated to the needs of the children and families to be served.
For the purpose of designing needs-specific treatment interventions, we cross-tabulated these factors to produce the following table.
Data Analysis and Implications
18The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Age
CALOCUS* Level Four“refers to services provided to children and adolescents capable of living in the community with support, either in their family, or in placements such as group homes, foster care, homeless or domestic violence shelters, or transitional housing.”*
CALOCUS* Level Five“refers to treatment in which the essential element is the maintenance of a milieu in which the therapeutic needs of the child or adolescent and family can be addressed intensively. This level of care traditionallyhas been provided in non-hospital settings such as residential treatment facilities or therapeutic foster homes. Equivalent services have been provided in juvenile justice facilities and specialized residential schools, and could be provided in homeless and/or domestic violence shelters or other community settings.”*
“Constellations of Need” derived from CANS data
CALOCUS* Level Six“services are the most restrictive and often, but not necessarily, the most intensive in the level of care continuum. Traditionally Level Six services have been provided in a secure facility such as a hospital or locked residential program. This level of care also may be provided through intensive application of mental health and medical services in juvenile detention services and/or educational facility provided that these facilities are able to adhere to medical and psychiatric care standards needed at Level Six. ”*
1. Developmental Needs2. Developmental Needs & Substance Use
7. Complex Behavioral Needs8. Complex Behavioral Needs & Substance Use9. Complex Behavioral Needs & Developmental Needs10. Complex Behavioral Needs & Developmental Needs & Substance Use
3. Severe Emotional Needs4. Severe Emotional Needs & Substance Use5. Severe Emotional Needs & Developmental Needs6. Severe Emotional Needs & Developmental Needs & Substance Use
6 to 9
10 to 12
13 to 1415 to 16
17 to 21
6 to 9
10 to 12
13 to 14
15 to 16
17 to 21
6 to 9
10 to 12
13 to 14
15 to 16
17 to 21
50
Children with High Risk Behaviors
Children with No High Risk Behaviors
Children with No Risk Behaviors
49
4847
46
45
44
4342
41
40
39
3837
36
35
34
3332
31
30
29
2827
26
25
24
2322
21
20
19
1817
16
15
14
1312
11
10
9
87
6
5
4
32
1
50
49
4847
46
45
44
4342
41
40
39
3837
36
35
34
3332
31
30
29
2827
26
25
24
2322
21
20
19
1817
16
15
14
1312
11
10
9
87
6
5
4
32
1
50
49
4847
46
45
44
4342
41
40
39
3837
36
35
34
3332
31
30
29
2827
26
25
24
2322
21
20
19
1817
16
15
14
1312
11
10
9
87
6
5
4
32
1
* Child and Adolescent Level of Care Utilization System (CALOCUS) v. 1.5 published by AACAP and AACP
Cross Tabulation of Data Factors
19The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Implications of Cross Tabulation1. Three levels of residential treatment varying by restrictiveness and intensity of
treatment
2. Further stratification by age and “Constellations of Need” results in 150 theoretical templates of care calibrated to age, needs and level of care3 levels of care X 5 age categories X 10 “Constellations Need = 150 unique treatment protocols.
6. We theorized we could then use this “base rate” as a starting point for a rational method for calibrating the treatment protocols to the other levels and age and needs groups.
3. A rate system with 150 unique specialized rates would be impractical and unwieldy
4. It would be unlikely to achieve fine tuning of clinical interventions to the specificity required by this level of stratification
5. Focused our efforts on developing one “base rate” for the Level 5 - 15 to 16 age group, representing the largest number of children in our data sample and system
Another look at the cross tabulation will illustrate what we mean by this.
20The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Age
CALOCUS* Level Four“refers to services provided to children and adolescents capable of living in the community with support, either in their family, or in placements such as group homes, foster care, homeless or domestic violence shelters, or transitional housing.”*
CALOCUS* Level Five“refers to treatment in which the essential element is the maintenance of a milieu in which the therapeutic needs of the child or adolescent and family can be addressed intensively. This level of care traditionallyhas been provided in non-hospital settings such as residential treatment facilities or therapeutic foster homes. Equivalent services have been provided in juvenile justice facilities and specialized residential schools, and could be provided in homeless and/or domestic violence shelters or other community settings.”*
“Constellations of Need” derived from CANS data
CALOCUS* Level Six“services are the most restrictive and often, but not necessarily, the most intensive in the level of care continuum. Traditionally Level Six services have been provided in a secure facility such as a hospital or locked residential program. This level of care also may be provided through intensive application of mental health and medical services in juvenile detention services and/or educational facility provided that these facilities are able to adhere to medical and psychiatric care standards needed at Level Six. ”*
1. Developmental Needs2. Developmental Needs & Substance Use
7. Complex Behavioral Needs8. Complex Behavioral Needs & Substance Use9. Complex Behavioral Needs & Developmental Needs10. Complex Behavioral Needs & Developmental Needs & Substance Use
3. Severe Emotional Needs4. Severe Emotional Needs & Substance Use5. Severe Emotional Needs & Developmental Needs6. Severe Emotional Needs & Developmental Needs & Substance Use
6 to 9
10 to 12
13 to 1415 to 16
17 to 21
6 to 9
10 to 12
13 to 14
15 to 16
17 to 21
6 to 9
10 to 12
13 to 14
15 to 16
17 to 21
50
Children with High Risk Behaviors
Children with No High Risk Behaviors
Children with No Risk Behaviors
49
4847
46
45
44
4342
41
40
39
3837
36
35
34
3332
31
30
29
2827
26
25
24
2322
21
20
19
1817
16
15
14
1312
11
10
9
87
6
5
4
32
1
50
49
4847
46
45
44
4342
41
40
39
3837
36
35
34
3332
31
30
29
2827
26
25
24
2322
21
20
19
1817
16
15
14
1312
11
10
9
87
6
5
4
32
1
50
49
4847
46
45
44
4342
41
40
39
3837
36
35
34
3332
31
30
29
2827
26
25
24
2322
21
20
19
1817
16
15
14
1312
11
10
9
87
6
5
4
32
1
* Child and Adolescent Level of Care Utilization System (CALOCUS) v. 1.5 published by AACAP and AACP
Cross Tabulation of Data Factors
21The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Standard Discharge Month
Total Interventions
20
Total Interventions
19
Standard Intake Week
Standard Treatment Month
Intake to Discharge
Treatment Planning and Coordination
15 clinical services
2 Clinical interventions for the child & family together
1 Clinical intervention for family
1 Therapeutic activities for the family
2 Therapeutic activities for the child & family
7 Treatment planning & coordination activities
7 non-clinical services
Total Interventions
22
*a therapeutic service delivered by a staff person who is not clinically licensed*a clinical service delivered by a staff person who is clinically licensed
6 Therapeutic* services for the child
6 Clinical** services for the child
4 Nursing interventions for the child
A total of 51 unique services to be “costed out”
Determining the “Basic” Treatment Protocol
22The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Intake Service (Delivered During First Week of Residency) Provider Hours1. Intake Psychiatric Assessment & Report Psychiatrist 2.00
2. Nursing Assessment & Report RN 1.00
3. Pediatric Assessment & Report Nurse Practitioner 0.50
4. Family Orientation BA/BSW + 4 0.50
5. Child Orientation HS Diploma/BA 0.50
6. Review & signing admission paperwork & consent forms with child & family BA/BSW 1.00
7. Psychosocial assessment & Substance Abuse Screen & Report LCSW 2.50
8. Child and Adolescent Needs & Strengths Assessment (CANS) LCSW 1.00
9. Milieu Assessment & Report BA/BSW 0.50
10. Recreation/Leisure Assessment & Report Recreational Therapist 0.50
11. Nutritional Screen & Report Licensed Dietician 0.50
12. Specialty Assessments & Reports LCSW 0.00
13. Psychological Screen & Report Psychologist 2.00
14. Arrange for update of child study team IEP information BA/BSW + 4 1.00
15, Initial Treatment & Crisis Plan Development, Documentation & Consultation LCSW 1.50
16. Initial Treatment & Crisis Plan Consultation with Psychiatrist Psychiatrist 0.25
17. Initial Treatment & Crisis Plan Consultation with Nurse RN 0.25
18. Initial Treatment & Crisis Plan Family & Child Debriefing LCSW 0.25
19. Comprehensive Treatment & Discharge Plan Development, Documentation & Consultation LCSW 3.00
20. Comprehensive Treatment & Discharge Plan Consultation with Psychiatrist Psychiatrist 0.25
21. Comprehensive Treatment & Discharge Plan Consultation with Nurse RN 0.25
22. Comprehensive Treatment & Discharge Plan Family & Child Debriefing (telephonic) LCSW 1.00
Basic Intake Week - Detail
23The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Treatment Month Services Provider Hours Frequency
23. Allied Therapies Licensed Therapist 6.00 Weekly
24. Milieu Activities HS Diploma + 3 /BA 1.28 Daily
24. Community integration focused leisure/recreational activities HS Diploma +5 /BA 7.00 Weekly
26. Activities of Daily Living Skills Training HS Diploma + 3/BA 0.25 Daily
27. Direct Child Supervision HS Diploma + 3/BA 6.00 Daily
28. Individual Therapy LCSW 1.50 Weekly
29. Group Therapy LCSW 3.00 Weekly
30. Medication Management Psychiatrist 1.08 Monthly
31. Clinician clinical visit with child LCSW 0.00 Daily
32. Psychiatrist clinical visit with child Psychiatrist 0.50 Monthly
33. Psychiatrist clinical visit with family Psychiatrist 0.50 Monthly
34. On Site Family Therapy (Child present) LCSW 1.00 Weekly
35. In-Home Family Therapy (Child present) LCSW 2.00 Weekly
36. Medication Dispensing RN 0.08 Daily
37. Health/Hygiene/Sex Education RN 0.25 Weekly
38. Nursing PRN RN 0.25 Weekly
39. Medication Education RN 0.54 Monthly
40. Pre-Vocational Skills Training BA/BSW 3.00 Weekly
41. Individualized Strengths Development Vetted & Trained Adult Volunteer 1.00 Weekly
Basic Treatment Month - Detail
These Services Replaced with In Home Discharge Preparation during Discharge Month
24The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Each for two visits2.00BA/BSW +444. Discharge Family Preparation
Once2.00BA/BSW +443. Level of Care Change Family Preparation on site
Monthly1.00BA/BSW +442. PRN In Home Family Psycho educational Activities tied to Comprehensive Treatment and Discharge Plan (Child not present)
FrequencyTimeProviderDischarge Month Services
Treatment Planning & Coordination Services Provider Time Frequency
45. In-House Individual Service Coordination BA/BSW +4 1.50 Weekly
46. Monthly CANS Review and Update LCSW 1.00 Monthly
47. Attend Treatment Team Meeting: BA Service Coordinator BA/BSW +4 0.50 Monthly
48. Attend Treatment Team Meeting: Child Supervision HS Diploma + 3/BA 0.50 Monthly
49. Attend Treatment Team Meeting: Clinician LCSW 0.50 Monthly
50. Attend Treatment Team Meeting: Psychiatrist Psychiatrist 0.50 Monthly
51. Attend Treatment Team Meeting: RN RN 0.50 Monthly
Basic Discharge Month - Detail
Basic Treatment Planning & Coordination - Detail
25The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Inter-Level Service Calibration based on Needs
Daily0.250.000.00Psychiatrist* Psychiatrist's time attending Clinician's Daily Debriefing on Child Status
Daily0.500.000.00RN* RN's time attending Clinician's Daily Debriefing on Child Status
Daily0.500.000.00HS Diploma + 3/BA* BA staff time attending Clinician's Daily Debriefing on Child Status
Daily0.500.000.00HS Diploma + 3/BA* Time attending Clinician's Daily Debriefing on Child Status
Daily0.750.000.00LCSW* Clinician's time conducting Daily Debriefing on Child Status
Monthly0.002.002.00BSW + 442. PRN In Home Family Psycho educational (Child not present)
Weekly1.001.002.00Vetted & Trained Adult Volunteer41. Individualized Strengths Development
Monthly1.080.540.54RN39. Medication Education
Monthly1.080.500.50Psychiatrist32. Psychiatrist clinical visit with child
Daily0.250.000.00LCSW31. Clinician clinical visit with child (level 6 only)
Monthly1.081.080.54Psychiatrist30. Medication Management
Weekly5.003.003.00LCSW29. Group Therapy
Weekly2.251.500.99LCSW28. Individual Therapy
Daily12.006.006.00HS Diploma + 3/BA27. Direct Child Supervision
Weekly4.007.0010.00HS Diploma + 3/BA25. Community integration focused leisure/recreational activities
Daily1.571.281.00HS Diploma + 3/BA24. Milieu Activities
Weekly9.006.003.00Licensed Therapist23. Allied Therapies
Frequency 65 4ProviderService Delivered
Hours at Level
26The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Treatment Regimens
Environment of Care
Child & Family Needs
Rate Calculation Formula (in simplistic terms)
Constellations of Needs
+ X
Human Resource CostsMarket-Based Salary Data
Market-Based Benefits Data
Salary.com regional
data
US Bureau of Labor
Statistics regional data
Salary.com regional benefits data
Administrative Costs
National BBB 501(c)3
Guidelines
X
Room and Board Costs
USDA’s Expenditures on Children by Families+
A Needs-Based Fair Market Rate forResidential Behavioral Healthcare Treatment
for Children and Families
Child and Adolescent Needs and Strengths (CANS) Data
The Child and Adolescent Level of Care Utilization System (CALOCUS) version 1.5. published by AACAP and
American Academy of Community Psychiatrists
Types of Care derived from the intersection of the CALOCUS and the Constellations of Need
Treatment regimens developed by
residential workgroup
27The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Implications of this Rate Setting ApproachDepending on implementation, the Out-of-Home Treatment Rates may be “naturally incentivized” toward intakes and discharges.
40
45
50
55
60
65
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Weeks of Treatment
Hou
rs o
f Tre
atm
ent
Inta
ke
Standard Treatment D
isch
arg
e
Treatment Team Meetings
Hours of Treatment to Children and Families
28The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Actual Pre-existing Residential Treatment Rate Structure Compared to Actual Proposed Needs Based Rate Fair Market Rates
Implications of this Rate Setting Approach
Contracts Arranged by Per Diem Rate
Rat
es
Lowest
Highest
Highest
Three Types of Preexisting Residential Treatment
Type 1: Non JCAHO-Approved Residential Treatment Centers (RTCs)Type 2: Community Based Psychiatric Treatment Residences
Type 3: JCAHO-Approved RTCs
29The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Actual Pre-existing Residential Treatment Rate Structure Compared to Actual Proposed Needs Based Rate Fair Market Rates
Implications of this Rate Setting Approach
Contracts Arranged by Per Diem Rate
Rat
es
Lowest
Highest
Highest
Three Types of Preexisting Residential Treatment
Type 1: Non JCAHO-Approved Residential Treatment Centers (RTCs)Type 2: Community Based Psychiatric Treatment Residences
Type 3: JCAHO-Approved RTCs
Wide Variance from highest to lowest inter- and intra- types of residential treatment
30The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Actual Pre-existing Residential Treatment Rate Structure Compared to Actual Proposed Needs Based Rate Fair Market Rates
Implications of this Rate Setting Approach
Contracts Arranged by Per Diem Rate
Rat
es
Lowest
Highest
Highest
Three Types of Preexisting Residential Treatment
Type 1: Non JCAHO-Approved Residential Treatment Centers (RTCs)Type 2: Community Based Psychiatric Treatment Residences
Type 3: JCAHO-Approved RTCs
Confusion regarding which type serves which children in the area of rate overlap
31The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Actual Pre-existing Residential Treatment Rate Structure Compared to Actual Proposed Needs Based Rate Fair Market Rates
Implications of this Rate Setting Approach
Contracts Arranged by Per Diem Rate
Rat
es
Lowest
Highest
Highest
Preexisting Rate Structure Replaced by New Proposed Rates
Type 1: Non JCAHO-Approved Residential Treatment Centers (RTCs)Type 2: Community Based Psychiatric Treatment Residences
Type 3: JCAHO-Approved RTCsRate range for Level 6 programs serving children with high needs
Rate range for Level 5 programs serving children with moderate needs
Rate range for Level 4 programs serving children with low needs
32The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Actual Pre-existing Residential Treatment Rate Structure Compared to Actual Proposed Needs Based Rate Fair Market Rates
Implications of this Rate Setting ApproachR
ates
Highest
Preexisting Rate Structure Replaced by New Proposed Rates
Rate range for Level 6 programs serving children with high needs
Rate range for Level 5 programs serving children with moderate needs
Rate range for Level 4 programs serving children with low needs
Three distinct levels of care reflective of child and family needs
Lowest
33The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Actual Pre-existing Residential Treatment Rate Structure Compared to Actual Proposed Needs Based Rate Fair Market Rates
Implications of this Rate Setting ApproachR
ates
Highest
Preexisting Rate Structure Replaced by New Proposed Rates
Rate range for Level 6 programs serving children with high needs
Rate range for Level 5 programs serving children with moderate needs
Rate range for Level 4 programs serving children with low needs
Lowest
An increase in child and family needs…
… is addressed by an increase in service intensity and…
…an increase in reimbursement rates.
34The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Lessons Learned: Successes
1. Succeeded in bringing together a diverse group of stakeholders, held their interest and achieved results.
2. The work process itself was highly educational to all participants and the audience for whom we worked and to whom we reported.
3. Participants and audience learned how irrational the existing rate structure was and how possible it was to replace it with one that actually makes sense and meets all stakeholders needs.
4. The process initiated a system-wide dialogue about how to accurately calibrate rates according to clinical treatment protocols to ensure the purchase of desired services.
5. That dialogue continues to this day…
35The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Lessons Learned: Pitfalls
1. Participation in the process should be targeted to high level financial and clinical folks. Unfortunately, this targeted audience is usually too busy to make the type of time commitment needed to bring the process to completion.
2. The process for setting the rates was the easy part. For a variety of reasons, to date the system hasn’t been able to develop and initiate a plan for implementing the developed rates.
3. Workgroup participants must be very carefully and strategically selected to avoid perceived exclusion that can result in criticism and sabotage by those feeling excluded.
4. Documentation of all discussions and decision making is key: people frequently forget what they’ve said
36The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Lessons Learned: Unintended Benefits
1. The workgroup experience and its products, although not implemented as intended, have increased the level of awareness and understanding of the interplay of clinical treatment and reimbursement rates amongst the system of care community.
2. The clinical protocols developed by the workgroup have become a resource for clinical treatment in the system and have been used for a variety of additional purposes.
37The Buddin Praed Foundation & The Massachusetts Department of Social Services Fourth Annual CANS ConferenceA Needs-Based Approach to Setting Fair Market Rates for Residential Behavioral Healthcare Treatment for Children & Families
Additional Information
Christopher [email protected]
Alan [email protected]