Seena Carrington, Acting CommissionerDivision of Health Care Finance and Policy
: Michael Weekes, President/CEOThe Providers’ Council
: Testimony re: 114.4 CMR 14:00 –
Rates for Family Stabilization ServicesDate
: March 9, 2011Acting Commissioner Carrington and members of the Division of Health Care Finance and Policy,thank you for this opportunity to address you. The Providers' Council is a statewide association of home- and community-based caregivers contracting with state purchasing agencies to deliver a widearray of rehabilitation, education, health and social services.In 2008, Governor Deval Patrick signed Chapter 257,
An Act Relative to Rates for Human and SocialService Providers
, into law. This law, passed unanimously by the Legislature, is intended to bringfairness, adequacy and transparency to the Commonwealth’s $2.1 billion purchase of service system.More directly, it is an opportunity for the Commonwealth to set prices paid for social services thatadequately cover the costs of delivering safe, quality services to people who must turn to the state forcare.
The Executive Office of Health and Human Services reported in October 2007 that: “…
it is in theCommonwealth’s interest to ensure that provider organizations are financially stable and that theindustry’s workforce is paid a fair living wage.”
The state passed the landmark law Chapter 257 lessthan a year after this report.Section 4 of Chapter 257 requires EOHHS to establish rates of payment for social service programsthat are
reasonable and adequate
and meet the costs which are incurred by efficiently andeconomically operated social service programs in conformity with federal and state law, regulations,and quality and safety standards.
Chapter 257 also asked that the rates of payment be adjusted to takeinto account:
The reasonable cost to social service program providers of any existing or new governmentalmandates
A cost adjustment factor to reflect changes in reasonable costs of goods and services of socialservice programs including those attributed to inflation; and geographic differences in wages,benefits, housing and real estate costs in each metropolitan statistical area of thecommonwealth, and in any city or town therein where such costs are substantially higher thanthe average cost within that area as a whole.
Assessment of proposed rates
Our assessment of the proposed rate for these
Family Stabilization Services
indicates that Chapter 257was not applied. We have reviewed the rate methodologies which provide limited information on thebasis of the numbers used: