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Audit Review of Certain Aspects of the Implementation of Chapter 257 of the Acts of 2008

Under Chapter 257, the Executive Office of Health and Human Services (EOHHS) establishes pricing and rate-setting procedures for human service vendors (other than special education programs) who would like to contract with the state. This report covered the period of July 1, 2015 through June 30, 2017.

Binder organization: Office of the State Auditor
Date published: May 8, 2019

Executive Summary

On August 8, 2008, the Legislature enacted Chapter 257 of the Acts of 2008, establishing that pricing for social-service programs other than special-education programs would be set by the Secretary of the Executive Office of Health and Human Services (EOHHS). Before this, state agencies typically negotiated multiyear contracts with human-service providers and established individual reimbursement rates for program services. However, a study conducted by EOHHS issued in 2008 concluded that the funding provided under such contracts might be affecting the stability of some human-service provider organizations.

In this performance audit, we reviewed certain aspects of the implementation of Chapter 257, including rate development, provider financial stability, wages paid to direct-care workers, and monitoring of provider quality, for the period July 1, 2015 through June 30, 2017.

Below is a summary of our finding and recommendation, with links to each page listed.

Finding 1
 

EOHHS has not established policies and procedures regarding the rate-setting process for programs subject to Chapter 257 of the Acts of 2008.

Recommendation
 

EOHHS should establish written policies and procedures for the rate-setting process.

 

A PDF copy of the Review of Certain Aspects of the Implementation of Chapter 257 of the Acts of 2008 is available here.

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(617) 727-3014

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Massachusetts State House
Room 230
Boston, MA 02133
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