Audit Reports Affecting Multiple Agencies
A Review of Rate Setting for Children's Residential Care
Report Number 95-022
Variations in rates paid by state and county placement agencies for children's residential care do not appear to impact the availability of services. Factors causing variations in rates range from the uniqueness of a child's needs to the nature and degree of charitable assistance received by service providers.
Weaknesses noted in rate-setting processes and the levels of care system can impact placement decisions, result in payment of erroneous rates, and affect quality of care.
Lack of an agency with statutory oversight responsibility results in ineffective coordination of information among placement agencies and ineffective system tools.
In the 1993, state and local agencies spent approximately $195 million on and served over 27,000 children in children's residential care.
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