Developmental services: rate methodology.

Existing law, the Lanterman Developmental Disabilities Services Act, requires the State Department of Developmental Services to contract with regional centers to provide services and supports to individuals with developmental disabilities. Existing law sets forth the department's and the regional center's authority to establish provider rates for various services and supports. Existing law requires the department, on or before March 1, 2019, to submit a rate study to the appropriate fiscal and policy committees of the Legislature that includes an assessment of the effectiveness of the methods used to pay each category of community service provider, including a consideration of whether the current method of ratesetting for a service category provides an adequate supply of providers in that category and a comparison of the estimated fiscal effects of alternative rate methodologies for each service provider category. This bill would require the department to develop and implement, on or before June 30, 2021, a new rate methodology that utilizes quality and performance measures to compensate service providers based on those measures to replace the rate methodologies for all services and supports in effect before that date, or to be an adjunct to those rate methodologies. The bill would require the department to seek input from specified stakeholders in the development of the new rate methodology, and to hold at least 2 public meetings as part of those efforts.