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FOR IMMEDIATE RELEASE
Tuesday, Sept. 14, 1999 		Contact: Michael Kharfen
(202) 401-9215

HHS APPROVES CHILD WELFARE DEMONSTRATION
FOR COLORADO

HHS Secretary Donna E. Shalala today approved a child welfare demonstration waiver for Colorado that will enable the state to tailor its financial agreements and case goals to the needs of its population.

"This project will help local child welfare agencies to offer high quality care and use unique approaches to help our most vulnerable children," said Secretary Shalala. "I believe, that in experimenting with a new financing model, Colorado will be able to reward quality care, particularly for children in kinship placements."

Under the demonstration, Colorado will contract with a single provider (or consortium of providers) in six participating counties. Each county will negotiate a countywide case rate and set goals for service providers, which are tailored to the children they serve. Eligible providers will have access to a wide array of services including mental health, substance abuse, education, transportation, and post placement. By converting the financing from fee-for-service to performance-based contracting, the state expects to improve safety, permanency and well being for the children, along with overall efficiencies in the system.

"I want to commend Colorado for developing innovative alternatives to improve the child welfare system and an exciting opportunity to test new approaches that will benefit families and children," said Olivia A. Golden, HHS assistant secretary for children and families. "I look forward to our partnership on this important initiative."

The Adoption and Safe Families Act of 1997 authorized HHS to approve up to 10 demonstration projects each year through 2002. HHS has encouraged states to develop innovative child welfare projects aimed at increasing adoptions of special needs children, promoting community-based services to prevent child abuse and neglect, improving access to needed health and mental health services, and addressing the unique needs of American Indian children. Colorado is the 21st waiver approved under this authority.

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

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