RD580 - Annual Report on the Utilization of Residential Care under the Children’s Services Act (FY2020)
Over the years, several strategies have been implemented to decrease children and youth placed in residential care settings. These strategies included implementing the Children's Services System Transformation initiative, a tiered, "incentive" match rate system in CSA designed to encourage serving children and youth in community-based settings, and the transition by Medicaid to a managed care approach to these services. In FY2020, the steady downward trend in the number of children served in residential care continued (overall decrease of 4% from FY2019), but the total CSA cost of these services increased by 5%. The number of youth in psychiatric residential treatment placements (PRTF) decreased by 7%, while those placements' costs increased by 4%. Group home (GH) placements decreased by 1%, while those placements' costs increased by 13%. Possible explanations of the changes in costs include increased lengths of stay (up 8% in GHs and 6% PRTFs) and increased cost of individual placements, perhaps due to a larger number of more costly out-of-state placements that are often not eligible for Medicaid reimbursement.