Senate Joint Resolution No. 8 describes funds following the client as a system whereby local community services hoards are charged a unit cost for services rendered to an individual by a state institution and are given another unit cost for services rendered in the community to a former or potential hospitalized individual. A funds following the client system is needed because at present it is financially advantageous for community programs to refer clients to state institutions rather than treat them in the community.

Appropriate funding systems in four states were studied -- California, Colorado, Massachusetts and Tennessee. While no single state system seemed appropriate, elements from the four other state systems were combined in designing a proposal for Virginia. The recommended pilot sites were Hampton-Newport News Community Services Board and Eastern State Hospital.

The Virginia proposal consists of three phases: preparation; initial implementation and final implementation. In the preparation phase the community will assess the service needs of the prospective clients at Eastern State Hospital. In addition, Eastern State Hospital will assess current staffing levels at the Bayside Building to determine whether or not current staffing levels are appropriate. At the initial implementation stage, the community will move 25 patients from Eastern State Hospital into the Hampton-Newport News area. Eastern State Hospital will eliminate 25 beds from its rated bed capacity. In the third phase, the community will move another 25 patients from Eastern State Hospital into the community. The community will also use this time to make program adjustments to fine tune the entire project. The Hospital will eliminate an additional 25 beds from its rated bed capacity.

The final task force recommendations were as follows:

1. Hampton-Newport News Community Services Board should proceed with the preliminary steps necessary to implement this project.

2. Hampton-Newport News Community Services Board should identify by November I, 1981, the dollar amount that will be needed to start this project.

3. Appropriate staffing levels should be identified by November 1, 1981 for the Bayside Building at Eastern State Hospital and the department should decide on the appropriate remedy if necessary.

4. The department believes that the principle of a funds following the client proposal must be fully incorporated into the department's long-range plan for providing equitable, balanced and appropriate mental health and mental retardation services to patients, residents and clients. However after considering the Hampton-Newport News Community Services Board proposal and the efforts of other states, the department recommends that it not proceed with the development of a funds following the client system.

5. The department shall carefully study and utilize, whenever possible, the information and procedures used by Hampton-Newport News Community Services Board and Eastern State Hospital staff in developing the funds following the client proposal. Other department proposals for discharging patients/residents from the state hospitals and training centers should follow many of the same steps as the Hampton-Newport News Community Services Board and Eastern State Hospital staff did in formulating their service recommendations.