January 1, 2007

Observations on Performance-Based Contracting in Foster Care from the Provider's Point of View

This paper by Jay Berlin contains observations on performance-based contracting (PBC) in publicly funded foster care written with particular reference to the foster care providing organization. The paper defines performance-based contracting and places it within the larger context of trends toward the privatization of functions that until recently were performed by public entities. The author divides all performance-based contracting in foster care into three general groups. In the first group are contracts within a managed care service delivery system, and the author explores the division of labor between lead agencies and direct service providers. The second group consists of contracts that require specific activities to be undertaken. Various jurisdictions have mandated a wide range of activities, and the levels of planning and provider participation in that planning are just as varied. As a result, provider satisfaction with and evaluation of these systems are also quite varied. The third group comprises the systems established in Illinois and Philadelphia that specifically reward foster care providers for achieving permanency outcomes and penalize providers who fail to achieve those outcomes.