§ 15:1084 — Establishment of rates for payment for care in nonstate operated agencies and

§1084. Establishment of rates for payment for care in nonstate operated agencies and
facilities
A. For purposes of establishing rates of payment the Department of Children and
Family Services or Louisiana Department of Health and the Department of Public Safety and
Corrections shall develop a formula that bears a reasonable relationship to cost of care for
children cared for by nonstate operated institutions and agencies and which incorporates a
prospective budgeting methodology. For purposes of establishing such rates each department
named herein shall develop criteria for budgeting that reflect established accounting practices
and encourage cost containment.
B. On the basis of information provided in accordance with R.S. 15:1083, the
Department of Children and Family Services or Louisiana Department of Health and the
Department of Public Safety and Corrections shall pay monthly to each nonstate operated
institution or agency a sum computed by these departments using a formula that bears a
reasonable relationship to cost of care for children cared for by the nonstate operated
institutions and agencies and which incorporates a prospective budgeting methodology.
C. The Department of Children and Family Services or Louisiana Department of
Health and the Department of Public Safety and Corrections may make revisions to these
rates provided that all of the following conditions are met:
(1) The Department of Children and Family Services or Louisiana Department of
Health or the Department of Public Safety and Corrections submits a report to the legislature
documenting the need for such revisions.
(2) The effective date of the revision shall be no earlier than the first day of the
succeeding state fiscal year.
(3) The revised rate shall remain in effect for at least the entire state fiscal year for
which the rate was revised; however, the rate paid to a facility may be reduced within such
fiscal year when it fails to document approved adjustments properly or fails to follow the
guidelines and regulations set forth by the departments.
(4) The legislature appropriates funds for implementation of the revised rates. D. The Louisiana Department of Health, Department of Children and Family
Services, and the Department of Public Safety and Corrections shall promulgate under the
Administrative Procedure Act and publish in the Louisiana Register the criteria utilized in
establishing the cost related formula that bears a reasonable relationship to cost of care for
children cared for by nonstate operated institutions and agencies. Each department may set
its own rates and make payment based on that rate.

Legislative History

Acts 1978, No. 786, §2, eff. Jan. 1, 1979; Acts 1981, No. 487, §2, eff. July 1, 1982; H.C.R. No. 222, 1981 R.S.; Acts 1984, No. 362, §1; Acts 1986, No. 331, §1; Acts 1988, No. 609, §1; H.C.R. No. 59, 1999 R.S.; Acts 2013, No. 220, §5, eff. June 11, 2013.