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July 7, 2006
 FY 2007-Demonstration Project: Community-Based Alternatives to
Psychiatric Residential Treatment Facilities
On August 18, 2006, the Centers for Medicare and Medicaid Services
(CMS) announced the availability of $218 million to fund a maximum
of ten state Medicaid programs to provide community-based
alternatives to psychiatric residential treatment facilities for
children. CMS seeks proposals that demonstrate collaboration with
youth and families and collaboration across mental health and other
child serving agencies. Grant applications from state Medicaid
agencies are due by October 18, 2006. Demonstration grants will be
awarded beginning December 1, 2006, and projects will end September
30, 2011.
The Community Alternatives to Psychiatric Residential Treatment
Facilities demonstration grants will provide a comprehensive package
of community-based services for children with mental illness. Of the
total funding amount, $1 million is set aside for an evaluation of
the project. The evaluation will address the cost effectiveness of
providing services in the community, as well as the impact of the
program in improving or maintaining the functional level of
participants.
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