Illinois General Assembly - Illinois Compiled Statutes

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20 ILCS 1705/54

(20 ILCS 1705/54) (from Ch. 91 1/2, par. 100-54)

Sec. 54.

Establishment of rates for purchase of services.

(a) It is the purpose of this Section to establish procedures
for the development, calculation, and communication of rates promulgated
by the Department for the
purchase of services for persons with a developmental disability, and persons
with mental illness; to require the promulgation of rules which specify the
treatment of costs for purposes of establishing rates for various purchase
care program categories; to require that rates be equitable, understandable,
and established through an open, public process; and to require the delineation
of where purchase care, grant-in-aid, and other payment mechanisms are most
appropriately utilized.  The Department's rate-setting policy should stimulate
the development of cost effective, clinically appropriate, community-based
residential, and other support services for recipients according to an
annual
statement of purchase care goals and objectives.

(b) The Department shall establish rates in all instances where services
are purchased by the Department for a specific recipient from a specific
community service provider for which the Department has the responsibility
for establishing payment rates.  When determining rates, the Department shall
take into consideration differences in the costs of doing business among the
various geographic regions of the State and shall set rates that reflect those
differences.  The Department may, for various program
categories, adopt rates that are set by other State agencies.

(c) The Department shall perform the following duties:

(1) Develop rate-setting methodologies for purchase

care program categories.

(2) Promulgate rules and regulations governing

rate-setting, treatment of costs, treatment of occupancy, and payment and contracting processes for purchase care.

(3) Collect cost and performance information from

care providers.  The Department may stipulate forms, unit of service definitions, reporting procedures and reporting intervals.

(4) Calculate purchase of care reimbursement rates

for specific providers based on the promulgated rate methodology for that program category.

(5) Negotiate and implement purchase of care

contracts with specific providers.

(6) Develop an annual statement of purchase care

goals and objectives detailing maximum units of service by program category to be purchased. The plan for each fiscal year shall be completed by May 1 of the previous fiscal year.

(7) Conduct an annual review and prepare an annual

report of rates and units of service purchased, comparing the annual purchase of care statement with actual services purchased, and the actual cost of providing those services. The report shall be made available by May 1.

(8) Establish and promulgate a process and criteria

for appealing rates.

(9) Develop and promulgate standards and criteria by

which provider performance shall be evaluated.

(10) Set rates based on published methodologies and

subject to the availability of funds appropriated by the General Assembly.

(11) Establish and promulgate a policy regarding

applicability of income offsets in rate calculation or payment processes.

(12) Develop criteria for selection of payment

mechanisms to be employed in funding community services.

(d) The Department may investigate and employ alternative rate setting
approaches and engage in demonstration projects.  These approaches
must be
publicly articulated by the Department, identifying the purpose and scope
of the alternative approach and evaluation to be conducted.

(e) (Blank).

(Source: P.A. 89-58, eff. 1-1-96; 89-507, eff. 7-1-97; 90-423, eff.
8-15-97.)