Title
From the Interim Director, Department of Health and Human Services (DHHS), submitting an informational report regarding the use of fee-for-service agreements by the Behavioral Health Division. (INFORMATIONAL ONLY UNLESS OTHERWISE DIRECTED BY THE COMMITTEE)
Body
Background
At the December 8, 2010 meeting of the Health and Human Needs Committee, an informational report was requested regarding the use of fee for service agreements by the Behavioral Health Division (BHD). The BHD has been utilizing fee for service agreements for several years, particularly for programs in the Community Services Branch and Wraparound Milwaukee, and continues to transition some of its purchase of services contracts to fee for service agreements.
Discussion
The Community Services areas within BHD, for children and adults, have traditionally used both purchase of service and fee for service systems to pay vendors for providing services to BHD clients. In recent years, the trend in Wisconsin and the US for the provision of community services is to transition more services to fee for service networks. This allows greater monitoring of the allocation of service units instead of using a not-to-exceed contract approach. BHD has followed this trend and is using more fee for service agreements to pay vendors.
In a fee for service network, a group of providers is identified and authorized to supply prescribed services to enrolled clients. This is a different approach to the provision of services because it puts the client in charge of where to “spend” their service vouchers since often there is more than one provider offering a specific service. In behavioral health settings, this can encourage ownership on the part of the client, as they are taking an active role in determining the provider for their treatment and recovery services. Providers are paid at a pre-established rate based on the service provided and the number of clients served. In the fee for service system, provide...
Click here for full text