37.2-608 - Performance contract for mental health, mental retardation, and substance abuse services.
§ 37.2-608. Performance contract for mental health, mental retardation, andsubstance abuse services.
A. The Department shall develop and initiate negotiation of the performancecontracts through which it provides funds to behavioral health authorities toaccomplish the purposes set forth in this chapter. The Department may,notwithstanding any provision of law to the contrary, disburse state andfederal funds appropriated to it for mental health, mental retardation, andsubstance abuse services directly to the behavioral health authority. Sixmonths prior to the beginning of each fiscal year, the Department shall makeavailable to the public the standard performance contract form that itintends to use as the performance contract for that fiscal year and solicitpublic comments for a period of 60 days.
B. Any behavioral health authority may apply for the assistance provided inthis chapter by submitting annually to the Department its proposedperformance contract for the next fiscal year together with the approval ofits board of directors and the approval by formal vote of the governing bodyof the city or county that established it. The behavioral health authorityshall make its proposed performance contract available for public review andsolicit public comments for a period of 30 days prior to submitting itsproposed contract for the approval of its board of directors. To avoiddisruptions in service continuity and allow sufficient time to completepublic review and comment about the contract and negotiation and approval ofthe contract, the Department may provide up to six semi-monthly payments ofstate-controlled funds to the authority. If the governing body of the city orcounty does not approve the proposed performance contract by September 30 ofeach year, the performance contract shall be deemed approved.
C. The performance contract shall (i) delineate the responsibilities of theDepartment and the behavioral health authority; (ii) specify conditions thatmust be met for the receipt of state-controlled funds; (iii) identify thegroups of consumers to be served with state-controlled funds; (iv) containspecific consumer, provider performance, consumer satisfaction, and consumerand family member participation and involvement measures; (v) containmechanisms that have been identified or developed jointly by the Departmentand the behavioral health authority and that will be employed collaborativelyby the behavioral health authority and the state hospital to manage theutilization of state hospital beds; (vi) establish an enforcement mechanism,should the behavioral health authority fail to be in substantial compliancewith its performance contract, including notice and appeal processes andprovisions for remediation, withholding or reducing funds, methods ofrepayment of funds, and the Department's exercise of the provisions ofsubsection E; and (vii) include reporting requirements and revenue, cost,service, and consumer information displayed in a consistent, comparableformat determined by the Department.
The Department may provide for performance monitoring to determine whetherbehavioral health authorities are in substantial compliance with theirperformance contracts.
D. No behavioral health authority shall be eligible to receivestate-controlled funds for mental health, mental retardation, or substanceabuse services after September 30 of each year unless (i) its performancecontract has been approved by the governing body of the city or county thatestablished it and by the Department; (ii) it provides service, cost,revenue, and aggregate and individual consumer data and information,notwithstanding § 37.2-400 or any regulations adopted thereunder, to theDepartment in the format prescribed by the Department; and (iii), it usesstandardized cost accounting and financial management practices approved bythe Department.
E. If, after unsuccessful use of a remediation process described in theperformance contract, a behavioral health authority remains in substantialnoncompliance with its performance contract with the Department, theDepartment may, after affording the authority an adequate opportunity to usethe appeal process described in the performance contract, terminate all or aportion of the contract. Using the state-controlled resources associated withthat contract, the Department, after consulting with the governing body ofthe city or county that established the behavioral health authority, maynegotiate a performance contract with a community services board, anotherbehavioral health authority, or a private nonprofit or for-profitorganization or organizations to obtain services that were the subject of theterminated performance contract.
(1998, c. 680, § 37.1-248.1; 2005, cc. 75, 716.)