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Skip Navigation LinksDPW-Reinvestment-Plan-Parameters DPW Reinvestment Plan Parameters

 Published by OMSAS April 21, 2003

​Allowable Uses For Reinvestment Funds

  1. Start-up costs for In-Plan Services;
  2. Development and/or purchase of Medical Assistance (MA) eligible Supplemental Services that are in lieu of or in addition to In-Plan Services; and
  3. Behavioral health services that are not MA eligible (non-medical)
  • Expenditures must be consistent with the Center for Medicare and Medicaid Services (CMS) waiver, the HealthChoices RFP and Agreement.
  • DPW will provide a listing of MA eligible Supplemental Services. Counties may request approval of a new MA eligible Supplemental Service.
  • Non-medical services are services or supports that are not In-Plan Services or MA eligible Supplemental Services.

Reinvestment Funds Cannot Be Used For:

  1. Incentive payments to a BH-MCO.
  2. Payment of In-Plan Services
  3. Administrative costs such as medical management, quality management activities, outcome studies, etc.
  4. Training not connected to the development of a specific service or program (see Allowable Expenditures For Training) detailed below.
  5. Transportation costs that are available under the Medical Assistance Transportation Program (MATP).
  6. Services targeted primarily for non-Medical Assistance (MA) eligible persons.
  7. "Bricks and Mortar" expenditures that do not comply with the Review and Approval Guidelines for Reinvestment Plans that Provide for Costs for Facility or Real Estate Purchase, Renovation or Purchase of Fixed Assets (Attachment 5).

Allowable Expenditures for Training

  1. Training is an important component of any new service. In developing a budget as part of a reinvestment plan, the training component should be identified in the overall budget of the service.
  2. The following are two (2) options that can be used for inclusion of training costs in a reinvestment plan: 
    1. Training As Part Of The Development Of A New Service
      1. The training must be tied to a new service and not a stand-alone budget item.
      2. For example, if the county has determined that there is a need for a Mental Illness Substance Abuse (MISA) program, Reinvestment Funds could be allocated to cover the costs of training for the implementation of this program. However, if the county decided that it would like to train all their county staff in MISA "best practice," counties would need to use administrative dollars to fund this training since it is not tied to a specific program developed to provide services targeted to MA eligible consumers. 
    2. Training Built Into The Service Rate
      1. As part of the development of new MA funded services, which were under the auspices of OMHSAS, such as Intensive Case Management (ICM), Family-based, etc., training was built into the overall rate.
      2. A certain number of training days were included in the rate development for these services. Training was considered an important component of these new mental health services and OMHSAS acknowledged this in the development of the rate setting methodology.
      3. Counties may build training costs into the payment rate as part of their reinvestment plan as long as they are tied to a specific program that is targeted to serve the MA eligible population.


Allowable Expenditures for Purchase, Renovation and Fixed Assets

The reinvestment plan must address additional information specified in the Review and Approval Guidelines for Reinvestment Plans that Provide for Costs for Facility or Real Estate Purchase, Renovation or Purchase of Fixed Assets (Attachment 5) when a plan priority includes Bricks and Mortar expenditures. These guidelines specify the additional information that must be included in the reinvestment plan priority submitted and in the agreement entered into between the County and the Subcontractor. These include:

  1. Additional areas that must be addressed in the reinvestment plan description regarding ownership, analysis of the need for Bricks and Mortar, availability of an on-going revenue source, etc.
  2. A detailed budget of the costs associated with the purchase of a facility or property, renovation, fixed assets, personnel, operating expenses, etc. must be submitted following the guidelines in Attachment 5.
  3. The County/Provider Agreement should ensure that, if the property is sold, any proceeds from the sale would be returned to the County. In this case a new reinvestment plan for these funds must be submitted within twelve (12) months or the funds will be considered Discretionary Funds which must be returned to the Department.
  4. Costs for Bricks and Mortar are one-time only funds and are not considered in the HealthChoices rate setting process. DPW has no obligation to continue to fund services approved for Bricks and Mortar.
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