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FOR IMMEDIATE RELEASE
Wedneday, Sept. 29, 1999 		Contact: Michael Kharfen
(202) 401-9215

HHS APPROVES CHILD WELFARE DEMONSTRATION
FOR FLORIDA

HHS Secretary Donna E. Shalala today approved a child welfare demonstration waiver for Florida that will allow the state to implement managed care principles with community-based providers to improve child welfare services for children and families in need.

"Florida will test an exciting and innovative model that will combine comprehensive services with incentives to improve the quality of those services to children and their families," said Secretary Shalala. "We look forward to learning that this new community-based care program will pay off in safe, stronger families and a more effective child welfare system."

Under the demonstration, Florida will initiate a statewide community-based care program, along with enhancing the coordination of child welfare services. The goals of these efforts seek to reduce the length of stay in out-of-home placements, reduce re-entry into the foster care system, and improve services statewide while ensuring the safety of children.

The "managed care" component will test a new way of reimbursing community-based non-profit agencies that provide social services under contract. Paying for services on a capitated basis, the program is intended to reward good results. Service providers whose work results in reduced out-of-home placements and reduced lengths of stay in foster care, while continuing to ensure safety of children, will have flexibility to redirect cost savings to innovative and enhanced services. Those providers who fail to meet standards will risk financial loss. The aim is to reshape the contractual relationship between public and private agencies from "payment for care" to "reward for results."

"The Clinton Administration believes strongly in encouraging creativity and giving flexibility to states to seek new approaches to improve the child welfare system," said Olivia A. Golden, HHS assistant secretary for children and families. "Florida has the promising opportunity to remake its child welfare services to meet the needs of children most at risk and to provide them a healthy future."

The Adoption and Safe Families Act of 1997 authorized HHS to approve up to 10 demonstration projects each year through 2002. Florida is the 24th waiver approved under this authority.

The demonstration project will be cost neutral, independently evaluated, and last up to five years.

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Note: For other HHS Press Releases and Fact Sheets pertaining to the subject of this announcement, please click here (www.os.dhhs.gov/news/press/) for our Press Release and Fact Sheet search engine at: www.os.dhhs.gov/news/press/.