H06-024 – Procedure

April 6, 2006

TO: / Division of Developmental Disabilities (DDD) Regional Administrators
Home and Community Services (HCS) Division Regional Administrators
Area Agency on Aging (AAA) Directors
FROM: / Linda Rolfe, Director, Division of Developmental Disabilities
Bill Moss, Director, Home and Community Services Division
Kathy Marshall, Director, Management Services Division
SUBJECT: /
DDD Home Care Agency Contracting Changes
Purpose: / To communicate changes in the current DDD Home Care Agency contracting process as well as the content of current contracts.
Background: / The home care agency industry has grown substantially in the past five to seven years. With this growth, DDD has received increasing requests for contracts from small, recently licensed home care agencies. At the present time, DDD has contracts with a number of home care agencies that are also contracted with a variety of Area Agencies on Aging. DDD contracts exclusively with about 40 additional home care agencies. Of these 40 DDD-only home care agencies, several have served no or few DDD clients during the last calendar year.
Home care agencies are used by Medicaid and waiver clients who receive in-home services. The home care agency contract used by HCS/AAAsdoes not include administrative cost reimbursements that have been included in the DDD home care agency contract.
ADSA is delivering the same in-home services across both the DDD and HCS/AAA client communities, so standardizing contract language as well as the contracting process is necessary.
What’s new, changed, or
Clarified / No new DDD-only home care agency contracts will be established from this date forward. A procurement cycle and RFQ for DDD-only home care agency contracts will be issued in early 2007.
Current contracts with DDD-only home care agencies that have served no clients during 2005 will be terminated for convenience.
All current DDD home care agency contracts will be amended:
  • To remove the 5% administrative reimbursement for Caregiver Orientation and agency worker health insurance.
  • To implement a universal end date of June 30, 2007.

ACTION: /
  1. DDD regional contract staff who receive a request from a licensed home care agency for a new DDD contract will provide this MB to the requestor and explain that ADSA will be announcing a home care agency procurement in early 2007.
  1. By June 1, 2006, DDD regional contract staff will request termination of DDD-only home care agency contracts with those agencies that provided no service to any DDD client in 2005. Use the attached list of DDD home care agencies to identify those agencies in your region. Check SSPS to confirm that this information continues to be correct. Contact Christy Hoosier if there is a question regarding a particular agency.
  1. By June 1, 2006, DDD regional contract staff will send the attached amendment, generated in ACD, to all remaining DDD contracted home care agencies including those also contracted with AAAs. This amendment will:
  • Remove the 5% administrative reimbursement for Caregiver Orientation and worker health insurance, if applicable.
  • Replace the current contract end date with June 30, 2007.

Related
REFERENCES:
ATTACHMENT(S): / DDD home care agencies by region:

Amended DDD HCA contract:

CONTACT(S): / Christy Hoosier, ADSA Contract Manager
360 725-3209

Beverly Lord, HCS Program Manager
360 725-2536

1