Fee-For-Service Agreement for DHHS Networks

1. Fee-For-Service Agreement for DHHS Networks 2009 Fee-For-Service Agreement & More! Presented by: Dennis Buesing – DHHS Contract Administrator Pamela Erdman – Wraparound QA/QI Director Diane Krager – DHHS QA Coordinator Jeannine Maher – Wraparound Provider Network Coordinator Rochelle Landingham – Contract Service Coordinator (BHD)

2. Overview 2009 Fee-for-Service Agreement and Summary of Changes 10/15/08

3. Summary of Changes PAGE 2 & 4 DEFINITION EXPANDED: “Covered Services” - services identified in this Agreement that are rendered by the Provider and are subject to the terms and conditions of this Agreement,for which the provider may request payment. 10/15/08

4. NEW DEFINITION: • “Site Review” – Visual inspection of Provider’s premise, employee records, service documentation, interview of appropriate persons or individuals including but not limited to: employees, participants, service recipients, parent/guardians, individuals with knowledge of the services recipient’s receipt of the Covered Service. The above may be conducted by Purchaser representatives, the Milwaukee County Department of Audit and representatives of appropriate federal, state or local agencies. 10/15/08

5. PAGES 4-6 • SECTION TWO • GENERAL OBLIGATIONS OF THE PROVIDER • Item E, H & I – New • Purchaser agrees not to use Direct Service Providers in the provision of Covered Services who are suspended, debarred, or under investigation by Purchaser or other Federal, State, or Local entities. • Provider agrees to provide Covered Services on a one on one, face-to-face basis unless otherwise specified by Purchaser Policy or Procedure • Provider agrees to maintain Service Documentation as required by this Agreement and Policies and Procedures including a consent for services signed and dated by the Service Recipient or parent/guardian. 10/15/08

6. PAGES 4-6 Continued • SECTION TWO • (Section Thirteen of 2008 Combined with Section Two) • GENERAL OBLIGATIONS OF THE PROVIDER • Items J & K – Moved here from “Service Documentation” (Section Thirteen in 2008) • Provider agrees to maintain and retain service documentation records as required by all applicable Policies and Procedures including the following minimum elements: the date, time, duration, location, intervention, summary of the activity engaged in, Participant’s response to the Covered Service, Direct Service Provider signature and signature date…. • For Children’s Court Services Network and WIser Choice… • For Wraparound Milwaukee and SAIL… • In the case of an adult, records shall be retained for a minimum of seven (7) years after Covered Services have completed. 10/15/08

7. PAGES 4-6 Continued • SECTION TWO • GENERAL OBLIGATIONS OF THE PROVIDER • Item M – New • Provider agrees to notify purchaser in writing within 5 business days of any of the following changes or conditions: • Agency name; • Agency ownership;Agency director/CEO; • Agency business or billing address(es); • Telephone or fax number;E-mail address; • Federal Employers Tax ID (FEIN) number; • Change of insurance carrier or insurance coverage; • Change in or restriction of license(s); • Discontinuation of agreed upon service(s). 10/15/08

8. PAGES 4-6 Continued • SECTION TWO • GENERAL OBLIGATIONS OF THE PROVIDER • Emergency Preparedness: • “pandemic flu” added • to agency requirement for a written plan to address the identified emergencies 10/15/08

9. PAGES 9 SECTION ELEVEN COMPENSATION Item A – Sentence added in the “middle”. Purchaser will only compensate Provider for pre-authorized Covered Services as defined in this agreement and Purchaser Policies and Procedures. Item B – Sentences added at the “end”. Provider may not bill Participants for Covered Services unless allowed as identified in a Purchaser Policy and Procedure or other addendum to this Agreement. This condition to remain in effect in the event the Purchaser is unable to provide compensation for Covered Service. 10/15/08

10. PAGES 11-12 SECTION TWELVE INDEMNITY AND INSURANCE Item D – New Provider hereby certifies that Provider's Direct Service Providers who use personal vehicles for any purpose related to the provision of Covered Services have in effect insurance policies in companies licensed to do business in the State of Wisconsin providing protection against all liability, including public liability and property damage, arising out of the use of their automobiles during the course of their employment. Provider further certifies that said Direct Service Providers have a Driver's License valid in the state of Wisconsin. 10/15/08

11. PAGE 14 SECTION FIFTEEN SITE AND SERVICE DOCUMENTATION REVIEW Item B – Sentences added at the “end”. Purchaser may require submission of requested documentation prior to payment for Covered Services. 10/15/08

12. PAGE 21 SECTION SEVENTEEN CONDITIONAL STATUS AND SUSPENSION Item C – Suspension Sub-Item 1 - New Failure to maintain in good standing required licenses, permits, certifications and/or insurance required by this Agreement. Sub-Item 7 – Language Added Findings resulting from a Site Review/auditby Purchaser representatives, the Milwaukee County Department of Audit and/or representatives of appropriate federal, state or local agencies that document quality concerns related to all applicable Policies and Procedures. 10/15/08

13. PAGE 23 SECTION TWENTY REVISION & TERMINIATION OF AGREEMENT Item B – New Language Added Failure to maintain in good standing required licenses, permits, certificationsand/or insurance as required by this Agreement, may, at the option of Purchaser, result in immediate termination of this Agreement 10/15/08

14. APPLIES TO WRAPAROUND ONLY(Not in Sample Agreement) ATTACHMENT D WRAPAROUND SPECIFIC REQUIEMENTS Payment For Day Treatment, Group Home And Residential Care – Requires Progress Entries in Synthesis 10/15/08

15. Service Description Details Agency administrative staff and direct service providers – familiar with current service description for service being provided Agree to provide service per this description and all relevant policies and procedures 10/15/08

16. 2009 Fee for Service Agreements Each Milwaukee County operated program will send out their own copy of the agreement. Individual Programs will: • Identify any requirements that need to be met in order to renew the agreement with that Program • Establish time frame for when the signed agreement must be returned • Work with Contract Administration regarding agencies that will be unable to renew their Agreement because of pending Audit issues 10/15/08

17. DHHS Provider Networks/Contract Administration Interface • Engage in Centralized QA Committee • Discuss/approve audit/review indicators • Assist with site audits/reviews • Dialogue regarding audit/review agency reports • Collaborate regarding FFS Agreement yearly revisions 10/15/08

18. Insurance RequirementsAudit and Accounting RequirementsMaintaining Financial RecordsGeneral Information on Allowable CostsAudit Requirements and Waiver Procedures 10/15/08

19. Insurance Requirement • Auto Liability: required for all agency vehicles (owned, non-owned, and/or hired). Coverage: 1 million per accident • Employees of Providers using personal vehicles to transport participants, or for any other reason related to the provision of Covered Services shall have Automobile Insurance providing the same liability limits as required of the Network Provider • Commercial General and/or Business Owner’s Liability: Required of ALL Providers and must include premises and off premises liability coverage (may include Umbrella policy) 10/15/08

20. Insurance (Professional Liability) Professional Liability: If the services provided constitute professional services, Provider shall maintain Professional Liability coverage (i.e. if a license or certification is required to perform the service). Includes Certified/Licensed Mental Health & AODA Clinics and Providers and : 1MM/3MM 10/15/08

21. Insurance (Professional Liability) • Hospital, Licensed Physician or any other qualified healthcare provider under Sect 655 : 1MM/3MM • Changed last year: Other Licensed Professionals, CPAs, Engineers, Attorneys, etc., $1,000,000 per Occurrence $2,000,000 Annual aggregate or Statutory limits whichever is higher 10/15/08

22. Insurance (cont’d) • Additional Insured: Milwaukee County shall be named as, and receive copies of, an “additional insured” endorsement, for general liability, automobile insurance (except for hired or non-owned vehicles), and Umbrella/excess insurance • Exceptions of compliance with “additional insured” endorsement are: 1. Transport companies insured through the State “Assigned Risk Business” (ARB). 2. Professional Liability where additional insured is not allowed. 10/15/08

23. Insurance (cont’d) • Upon Renewal, Provider shall furnish County annually on or before the date of renewal, evidence of a Certificate indicating the required coverage (with the Milwaukee County Department of Health and Human Services named as the “Certificate Holder ”) CERTIFICATE HOLDER Milwaukee County Department of Health and Human Services Contract Administrator 1220 W. Vliet Street, Suite 109 Milwaukee, WI 53205 10/15/08

24. Insurance (cont’d) • Binders are not acceptable except during preliminary application period • Failure to comply with insurance requirements may result in suspension or non-renewal of contract 10/15/08

25. Who Must Have an Audit? Audits are required by State Statute if the care & service purchased with State funding exceeds $25,000 per year • Statutes allow the Dept. to waive audits. Audits may not be waived if the audit is a condition of state licensure, or is needed to claim federal funding (e.g. Group Foster Care or CCIs) • Standards for audits are found in DHFS/DWD/DOC Provider Agency Audit Guide, 1999 Revision (on line at www.dhfs.state.wi.us/grants) • Non-profit providers that receive $500,000 or more in federal awards must also have audit performed in accordance with OMB Circular A-133 Audit of State, Local Governments, and Non-Profit Organizations. 10/15/08

26. What Must the Audit Contain? • Items Frequently Omitted • Summary of Auditor’s Results and Schedule of Findings and Questioned Costs • Copy of Management Letter, if any • Corrective action plan for all current-year audit findings related to County funded programs & Management’s response to each audit comment and item identified in the Management Letter. • Schedule of Federal and State Awards 10/15/08

27. What Other Schedules are Required? Per contract, Schedule of Program Revenue & Allowable Cost by Contract (program), or program/facility within a contract. If program receives revenue from more than 1 funding source, all funding sources must be listed separately. • If applicable, Incorporated Group Home/Child Caring Institution Supplemental Schedule • Nonprofit providers paid on a unit-times-unit-price contract, Reserve Supplemental Schedule • For-profit providers, Schedule of Allowable Profits 10/15/08

28. Allowable Costs & Allowable Profits or Reserves • Per State Statute, ultimately, all agreements with Milwaukee County DHHS for care & services paid with dept. funding are cost reimbursement contracts • For-profit providers may retain up to 10% in profit per contract; 7½% of allowable costs, plus 15% of net equity (Allowable Cost Policy Manual, Section III.16) • Nonprofit providers paid on a unit-times-unit-price contract may add up to 5% of contract amount in excess revenues to reserves each yr., up to a cumulative maximum of 10%. 10/15/08

29. Allowable Costs & Allowable Profits or Reserves • The County does not have to allow either a profit or reserves to providers who do not include a Schedule of Allowable Profits, or Reserve Supplemental Schedule with their audit 10/15/08

30. Other Allowable Cost Issues • Generally interest expense, except for purchase-money mortgages to purchase real estate, or equipment is not an allowable cost. Interest paid under Working Capital Loans, a line of credit or refinancing to pull money out of a property is not an allowable cost. • Generally, advertising expense, except for costs associated with hiring and recruiting, is not an allowable cost • Alcohol, Entertainment, Contributions & Donations and repayment of audit recoveries and other debt, are never an allowable cost 10/15/08

31. Special Allowable Cost Rules for S Corporations • Distributions to Shareholders are not an allowable cost, and will be treated as a distribution of profits or dividends, not as wages. • Per 48 CFR part 31, for costs to be allowable, the cost must be deductible on the entity's federal income tax return per IRS regs. • To be allowable, salaries accrued for 2% or more shareholders must be paid in the current contract year 10/15/08

32. Allowable Cost & Related Party Issues • Allowable Cost Rules under rental agreements with Related Parties contain additional restrictions • Allowable rent expense under related party leases may not exceed the actual costs to the related party that owns the property. (Generally, mortgage interest, RE taxes, insurance, maint./utilities & depreciation) • Per contract, the auditor must disclose related party rental arrangements, rent paid to the related party, the related party’s actual expenses on the property, & the amount of unallowable rent on each property charged to any contract with Milwaukee County 10/15/08

33. Maintaining Financial Records • Both Federal and State contracting guidelines require provider agencies to maintain proper books and adequate financial records • Providers should maintain an accurate and up-to-date general ledger and timely financial statements for management & board members • Financial Statements must be prepared in conformity with generally accepted accounting principles (GAAP) and on the accrual basis of accounting. Contractor must request, and receive written consent of County to use other basis of accounting in lieu of accrual basis of accounting. 10/15/08

34. Maintaining Financial Records • Amounts recorded in the books should be supported by invoices, receipts or other documentation • Providers should maintain a separate cost center for each contract, or program/facility within a contract • Whenever possible, costs should be charged directly to a contract, all other costs should be allocated using a reasonable and consistent allocation method and supported by an Indirect Cost Allocation Plan • Providers must not commingle personal and business funds. A separate checking account should be established & providers should not use personal credit cards for agency business • All Provider agencies should maintain and adhere to a board approved, up-to-date Accounting Policy & Procedures Manual and bonus policy 10/15/08

35. Audit Waiver • Statutes allow the Dept. to waive audits. Audits may not be waived if the audit is a condition of state licensure, or is needed to claim federal funding (e.g. Group Foster Care or CCI). • Waiver request can only be entertained if agency does not need to have an audit according to Federal Audit requirement. • Waivers need to be approved on case by case basis by regional office based on a risk assessment ( Funding <$75,000 is considered low risk) • Waiver Request S/B submitted DHHS Contract Administration prior to audit due date 10/15/08

36. Audit Waivers • DHHS has been approving Audit Waivers for Fee for Service contracts mainly on basis of economic hardship • In case of small residential care providers ( Family group home and AFH) county has the authority to grant a waiver. • Waiver Form is available at: http://www.milwaukeecounty.org/contractmgt15483.htm • 2007 Audit Waiver Form 10/15/08

37. Common Errors or Omissions • Nonprofits - Failure to provide Supplemental Reserve Schedule for all programs or contracts • Failure to submit audit in a timely manner (results in Admin. Probation & inability to renew contract) • Failure to submit written Extension requests • Failure to submit written Waiver requests • Failure to submit evidence of Insurance renewal in a timely manner • Audits are sent to wrong address • Audit confirmation are sent to wrong address 10/15/08

38. Names & Address for Submissions • Submit Audits to: Dennis Buesing DHHS Contract Administration 1220 W. Vliet St., Suite 109 Milwaukee, WI 53205 Ph:414-289-5853 • Wraparound Confirmation Requests to: Janet Friedman Wraparound Milwaukee Finance 9201 W. Watertown Plank Rd., Room 255 Milwaukee, WI 53226 Ph:414-257-7597 10/15/08

39. Submissions (cont’d) • Wiser Choice Confirmation Requests to: Paul Neymeyr Behavioral Health Division 9201 W. Watertown Plank Rd., Room 607 Milwaukee, WI 53226 Ph:414-257-7912 • All Other Confirms (Purchase of Service, Children’s Court Services Network & DSD) Stanley Dyett DHHS Accounting 1220 W. Vliet St., Suite 109 Milwaukee, WI 53205 Ph:414-289-6866 10/15/08

40. BREAK 10/15/08

41. Quality Assurance Policies and ProceduresClient Chart MaintenanceAudit/Review Indicators 10/15/08

42. Quality Assurance – Policies and Procedures • Refer to the applicable Division’s policies and procedures as they may differ. • Agency is responsible for inservicing all Direct Service Providers on all relevant policies and procedures, i.e. – Mentors should be inserviced on the Mentor Policy and Procedure. 10/15/08

43. Noncompliance with Policies and Procedures • Will be reflected in agency review report • Can result in: • Fiscal recoupments • Suspension • Termination from Network • Restriction of future contracts with Milwaukee County • Corrective Plan of Action required 10/15/08

44. Client Chart Maintenance • 1 chart per client/family • If sibling or caregiver of identified enrollee, must be clearly indicated • Separate file into sections, i.e. Referral, Consents, Plans of Care/Service Plans/Treatment Plans, Notes, Correspondence, etc. • Most recent correspondence and notes on top in each section • See Provider Bulletin #1-09 (Wraparound only) 10/15/08

45. Client Chart Maintenance (cont.) • Chart should be orderly, neat, accessible • Keep files in alphabetical order • Separate current files from disenrolled files. • Maintain file until youth turns age 19 or until 7 years after service is completed, whichever is longer 10/15/08

46. QUALITY ASSURANCEWhat we look for during a Site Review 1. Network Provider cooperation. 2. Compliance with Requirements: • Fee-For-Service Agreement • Policies and Procedures • Provider Bulletins (Wraparound only) • HFS 12: Wis. Adm. Code State of Wis. Caregiver Program • Other applicable Federal, State, and County regulations 10/15/08

47. Basic Review Indicators Agency Indicators • Required Licenses: i.e. Current Outpatient Clinic Mental Health State Certification, AODA Clinic License, etc. • Required Insurance Coverage's: i.e. Gen. Commercial Liability ($1MM min. w/ MC named as addit. insured), Professional Liability, Wisc. Workers’ Compensation, etc. • Required Training Manuals (service specific-Wraparound only) 10/15/08

48. Basic Review Indicators(cont’d) Provider Indicators • Current Professional Licenses or Certifications • Evidence that Counselors meet Minimum Credential Requirements • Evidence of Minimum Training Prior to Provision of Service (service specific) • Compliance with 3 components of Background Check and Wisc. Caregiver Law and Milwaukee County Resolution • Valid Driver’s Licenses, Auto Insurance, Driving Abstracts on File 10/15/08

49. Criminal Background Checks • Your agency is required to complete a State-wide criminal background check through the Department of Justice Crime Information Bureau (CIB) on all prospective direct service providers • When hiring direct service providers/employees that lived outside the state of WI within the prior 3 years: Obtain out of state background check within state employee resided and a Federal criminal background check • Three parts to Caregiver Background Checks: 1. Background Information Disclosure (BID) Form 2. Response from Dept of Justice 3. Letter from Dept of Health and Family Services (DHFS) 10/15/08

50. Criminal Background Checks (continued) • Repeat every 4 years for ongoing Providers (or at any time within that period when an agency has reason to believe a new background check should be obtained). 10/15/08