D08-004 - Procedure

May 1, 2008
TO: / Regional Administrators
Field Services Administrators
Voluntary Placement Program Coordinators/Supervisors
FROM: / Linda Rolfe, Director, Division of Developmental Disabilities
SUBJECT: /
Standardizing the Staffed Residential Rate Setting Process
Purpose: / To explain how the daily rate for staffed residential homes is determined.
Background: / Children in the Voluntary Placement Program (VPP) may reside in staffed residential homes, which are licensed by the Children’s Administration, Division of Licensed Resources (DLR). DDD contracts with licensed providers to serve up to four children in a licensed home. Rates are negotiated individually with the licensed provider, taking into account the child’s behavioral issues, supervision needs, and the requirement for consultants and/or one-to-one staffing.
What’s new, changed, or
Clarified / The rate setting process is standardized to provide a consistent methodology from region to region and agency to agency. The staffed residential rate is composed of 5 sections:
1. Administrative Costs: The daily administrative rate is basedon the number of Instruction and Support Services (ISS) hours per day and the Administrative Rate Standard Table for Supported Living programs from DDD Policy 6.04, Residential Programs Reimbursement System. Transportation is calculated using an approved format and the damage allowance is estimated at up to $5.00/day.
2. Living Expenses: Except for food, living expenses are “up to” the following amounts:
Monthly Living Expenses
King & Snohomish / MSACounty / Non-MSACounty
Rent / Up to $750/client / Up to $700/client / Up to $650/client
Utilities* / Up to $260/client / Up to $260/client / Up to $260/client
Food / $350/client / $350/client / $350/client
Special Diet / $400/client / $400/client / $400/client
* Utilities include electricity, heat, telephone, cable, water, and garbage.
3. Community Inclusion: The standardized rate is $150/per month/per child. However, after conversations with the provider, the VPP Coordinator/Supervisor may determine that the client does not participate in enough community activities to justify the standardized amount and adjust accordingly.
4. Consultants: Consultant expenses may be calculated into the daily rate when consultation occurs on a regular, consistent basis and it is preferable for the agency to hire and contract directly for the consultant expertise needed. The VPP Coordinator/Supervisor should also consider the option of authorizing and paying for professional services separate from the staffed residential rate process.
5. Staff Costs: The VPP Coordinator/Supervisor or the Regional Resource Manager negotiates the staffing schedule that will be required to successfully support the child in the community setting. Because the children are enrolled in school, it would be expected that less direct care staffing hours are needed on a typical school day. However, even though there are 180 days in a school year; the formula for calculating the number of hours per year is “weighted” based on 120 school days and 245 non-school days. This assumption allows the provider enough flexibility to provide staffing for days that the child is sick or refusing to go to school at all, or for the child who has less than a 6 hour day at school.
Rate proposals for staffed residential placements that are funded with 2007-2009 budgeted “proviso slots” are calculated using the hourly ISS benchmark rates identified in DDD Policy 6.04.
ISS Compensation Rates for salaries, wages, payroll taxes, and fringe benefits:
Effective 7/1/07 – 6/30/08
Direct Care
Lead/Supervisor / Program Manager
(150% of Benchmark)
Non-MSA Counties / $ 15.18/hr / $ 22.77/hr
MSA Counties / $ 15.49/hr / $ 23.24
KingCounty / $ 16.11/hr / $ 24.17/hr
County / Effective 7/1/08 – 6/30/09
Direct Care
Lead/Supervisor / Program Manager
(150% of Benchmark)
Non-MSA Counties / $15.48/hr / $ 23.22/hr
MSA Counties / $ 15.80/hr / $ 23.70/hr
KingCounty / $ 16.43/hr / $ 24.65/hr
The Staffed Rate Proposal form totals the five cost centers, subtracts the client’s participation, and computes the monthly and daily rate. The client’s participation includes room and board, clothing, and personal and incidentals.
ACTION: / Effective immediately, VPP Coordinators/Supervisors or the Regional Resource Managers will negotiate the child’s individual rate with the provider, following these procedures:
  1. Use either DSHS 10-326, Staffed Residential Rate Proposalor an approved excel format posted on theVPP Intranet webpage.
  1. The VPP Coordinator/Supervisor will sign the rate proposal document and obtain the signature of the Regional Administrator and the Central Office VPP Program Manager before the placement is made.
  1. The VPP Central Office Program Manager will fax the signed signature page back to the VPP Coordinator/Supervisor.

Related
REFERENCES: / DDD Policy 6.04, Residential ProgramsReimbursement System
Chapter 388-148 WAC
SSPS Manual, Appendix E
ATTACHMENT(S): / None
CONTACT(S): / Gaye Jensen, VPP Program Manager, 360/725-3403,
Doug Washburn, Chief, Office of Field Services Support, 360/725-3452,

D08-004Page 1 of 35/1/08