{"data":{"id":"us-ky/krs-199.641","jurisdiction":"us-ky","citation":"KRS 199.641","heading":"Definitions -- Payments to child-caring facility or child-placing agency.","body":"(1) As used in this section, unless the context otherwise requires:\n(a) \"Allowable costs report\" means a report from each child -caring facility or\nchild-placing agency that contracts with the department for services and\nincludes all allowable costs as def ined by the Federal Office of Management\nand Budget's guidance, including Title 2 of the Code of Federal Regulations,\nand other information the department may require, utilizing cost data from\neach child-caring facility's or child-placing agency's most recent yearly audited\nfinancial statement;\n(b) \"Department\" means the Department for Community Based Services of the\nCabinet for Health and Family Services;\n(c) \"Model program cost analysis\" means a report based on a time study, the\nallowable costs report, and other information required by the department from\neach child -caring facility or child -placing agency that contracts with the\ndepartment for services that determines a statewide median cost for each\nlicensed program category of service provided by child -caring facilities or\nchild-placing agencies; and\n(d) \"Time study\" means the process of reporting the work performed by\nemployees of child-caring facilities or child-placing agencies in specified time\nperiods.\n(2) Subject to the limitations set forth in subs ection (4) of this section, when the\ndepartment chooses to contract with a child -caring facility or child -placing agency\nfor services to a child in the custody of or committed to the department, the\ndepartment shall make payments to that facility based on the rate setting\nmethodology developed from the model program cost analysis. The department\nshall also assure that the methodology:\n(a) Provides payment incentives for moving children as quickly as possible to a\npermanent, continuous, stable environment;\n(b) Provides children who require out -of-home care or alternative treatment with\nplacements that are as close as possible to their home geographic area and\nensure continuity with their families, schools, faiths, and communities;\n(c) Provides appropriate pla cement and treatment services that effectively and\nefficiently meet the needs of the child and the child's family as close as\npossible to the child's home geographic area; and\n(d) Facilitates provider participation in the state Medicaid program established  in\naccordance with KRS Chapter 205.\n(3) The department shall use the model program cost analysis as a basis for cost\nestimates for the development of the department's biennial budget request.\n(4) The secretary shall, to the extent funds are appropriated, establish and implement\nthe rate setting methodology and rate of payment by promulgation of administrative\nregulations in accordance with KRS Chapter 13A that are consistent with the level\nand quality of service provided by child -caring facilities. The adm inistrative\nregulations shall also include the forms and formats for the model program cost\nanalysis.\n(5) Nothing in this section shall prohibit the department from soliciting proposals to\nimprove or expand alternative services for children in the custody of or committed\nto the cabinet.","path":["KRS Chapter 199"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48039","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:54Z","sha256":"bea4e43281a49554f57a1403d3415dada10e44aafe03989d3497547f783b9dab","source_id":"us-ky","stale":false,"prev":"us-ky/krs-199.640","next":"us-ky/krs-199.642"},"notice":"GroundRules: Original legal text. Not legal advice."}