Kentucky Statutes 199.641 – Definitions — Payments to child-caring facility or child-placing agency
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(1) As used in this section, unless the context otherwise requires:
(a) “Allowable costs report” means a report from each child-caring facility or child-placing agency that contracts with the department for services and includes all allowable costs as defined by the Federal Office of Management and Budget’s guidance, including Title 2 of the Code of Federal Regulations, and other information the department may require, utilizing cost data from each child-caring facility’s or child-placing agency’s most recent yearly audited financial statement;
(b) “Department” means the Department for Community Based Services of the
Cabinet for Health and Family Services;
(c) “Model program cost analysis” means a report based on a time study, the allowable costs report, and other information required by the department from each child-caring facility or child-placing agency that contracts with the department for services that determines a statewide median cost for each licensed program category of service provided by child-caring facilities or child-placing agencies; and
(d) “Time study” means the process of reporting the work performed by employees of child-caring facilities or child-placing agencies in specified time periods.
(2) Subject to the limitations set forth in subsection (4) of this section, when the department chooses to contract with a child-caring facility or child-placing agency for services to a child in the custody of or committed to the department, the department shall make payments to that facility based on the rate setting methodology developed from the model program cost analysis. The department shall also assure that the methodology:
(a) Provides payment incentives for moving children as quickly as possible to a permanent, continuous, stable environment;
(b) Provides children who require out-of-home care or alternative treatment with placements that are as close as possible to their home geographic area and ensure continuity with their families, schools, faiths, and communities;
(c) Provides appropriate placement and treatment services that effectively and efficiently meet the needs of the child and the child’s family as close as possible to the child’s home geographic area; and
(d) Facilitates provider participation in the state Medicaid program established in accordance with KRS Chapter 205.
(3) The department shall use the model program cost analysis as a basis for cost estimates for the development of the department’s biennial budget request.
(4) The secretary shall, to the extent funds are appropriated, establish and implement the rate setting methodology and rate of payment by promulgation of administrative regulations in accordance with KRS Chapter 13A that are consistent with the level and quality of service provided by child-caring facilities. The administrative regulations shall also include the forms and formats for the model program cost
analysis.
(5) Nothing in this section shall prohibit the department from soliciting proposals to improve or expand alternative services for children in the custody of or committed to the cabinet.
Effective: July 14, 2018
History: Amended 2018 Ky. Acts ch. 159, sec. 5, effective July 14, 2018. — Amended
2005 Ky. Acts ch. 99, sec. 190, effective June 20, 2005. — Amended 2000 Ky. Acts ch. 14, sec. 21, effective July 14, 2000; and ch. 307, sec. 1, effective July 14, 2000. — Amended 1998 Ky. Acts ch. 426, sec. 153, effective July 15, 1998. — Amended 1992
Ky. Acts ch. 297, sec. 1, effective July 14, 1992. — Created 1988 Ky. Acts ch. 239, sec. 1, effective July 15, 1988.
Legislative Research Commission Note (7/14/2000). This section was amended by
2000 Ky. Acts chs. 14 and 307. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 307, which was last enacted by the General Assembly, prevails under KRS § 446.250.
(a) “Allowable costs report” means a report from each child-caring facility or child-placing agency that contracts with the department for services and includes all allowable costs as defined by the Federal Office of Management and Budget’s guidance, including Title 2 of the Code of Federal Regulations, and other information the department may require, utilizing cost data from each child-caring facility’s or child-placing agency’s most recent yearly audited financial statement;
Terms Used In Kentucky Statutes 199.641
- Cabinet: means the Cabinet for Health and Family Services. See Kentucky Statutes 199.011
- Child: means any person who has not reached his eighteenth birthday. See Kentucky Statutes 199.011
- Child-caring facility: means any institution or group home, including institutions and group homes that are publicly operated, providing residential care on a twenty-four (24) hour basis to children, not related by blood, adoption, or marriage to the person maintaining the facility, other than an institution or group home certified by an appropriate agency as operated primarily for educational or medical purposes, or a residential program operated or contracted by the Department of Juvenile Justice that maintains accreditation, or obtains accreditation within two (2) years of opening from a nationally recognized accrediting organization. See Kentucky Statutes 199.011
- Child-placing agency: means any agency licensed by the cabinet, which supervises the placement of children in foster family homes or child-caring facilities, or which places children for adoption. See Kentucky Statutes 199.011
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the Department for Community Based Services. See Kentucky Statutes 199.011
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Secretary: means the secretary for health and family services. See Kentucky Statutes 199.011
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Treatment: when used in a criminal justice context, means targeted interventions
that focus on criminal risk factors in order to reduce the likelihood of criminal behavior. See Kentucky Statutes 446.010
(b) “Department” means the Department for Community Based Services of the
Cabinet for Health and Family Services;
(c) “Model program cost analysis” means a report based on a time study, the allowable costs report, and other information required by the department from each child-caring facility or child-placing agency that contracts with the department for services that determines a statewide median cost for each licensed program category of service provided by child-caring facilities or child-placing agencies; and
(d) “Time study” means the process of reporting the work performed by employees of child-caring facilities or child-placing agencies in specified time periods.
(2) Subject to the limitations set forth in subsection (4) of this section, when the department chooses to contract with a child-caring facility or child-placing agency for services to a child in the custody of or committed to the department, the department shall make payments to that facility based on the rate setting methodology developed from the model program cost analysis. The department shall also assure that the methodology:
(a) Provides payment incentives for moving children as quickly as possible to a permanent, continuous, stable environment;
(b) Provides children who require out-of-home care or alternative treatment with placements that are as close as possible to their home geographic area and ensure continuity with their families, schools, faiths, and communities;
(c) Provides appropriate placement and treatment services that effectively and efficiently meet the needs of the child and the child’s family as close as possible to the child’s home geographic area; and
(d) Facilitates provider participation in the state Medicaid program established in accordance with KRS Chapter 205.
(3) The department shall use the model program cost analysis as a basis for cost estimates for the development of the department’s biennial budget request.
(4) The secretary shall, to the extent funds are appropriated, establish and implement the rate setting methodology and rate of payment by promulgation of administrative regulations in accordance with KRS Chapter 13A that are consistent with the level and quality of service provided by child-caring facilities. The administrative regulations shall also include the forms and formats for the model program cost
analysis.
(5) Nothing in this section shall prohibit the department from soliciting proposals to improve or expand alternative services for children in the custody of or committed to the cabinet.
Effective: July 14, 2018
History: Amended 2018 Ky. Acts ch. 159, sec. 5, effective July 14, 2018. — Amended
2005 Ky. Acts ch. 99, sec. 190, effective June 20, 2005. — Amended 2000 Ky. Acts ch. 14, sec. 21, effective July 14, 2000; and ch. 307, sec. 1, effective July 14, 2000. — Amended 1998 Ky. Acts ch. 426, sec. 153, effective July 15, 1998. — Amended 1992
Ky. Acts ch. 297, sec. 1, effective July 14, 1992. — Created 1988 Ky. Acts ch. 239, sec. 1, effective July 15, 1988.
Legislative Research Commission Note (7/14/2000). This section was amended by
2000 Ky. Acts chs. 14 and 307. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 307, which was last enacted by the General Assembly, prevails under KRS § 446.250.