{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/37.2-608.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/37.2-608.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/37.2-608.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/37.2-608.html"}],"law_id":85448,"edition_id":1,"section_id":85448,"structure_id":13973,"section_number":"37.2-608","catch_line":"Performance contract for mental health, developmental, and substance abuse services","history":"1998, c. 680, \u00a7 37.1-248.1; 2005, cc. 75, 716; 2012, cc. 476, 507; 2023, cc. 484, 754, 790.","full_text":"A\n\nThe Department shall develop and initiate negotiation of the performance contracts through which it provides funds to behavioral health authorities to accomplish the purposes set forth in this chapter. The Department may, notwithstanding any provision of law to the contrary, disburse state and federal funds appropriated to it for mental health, developmental, and substance abuse services directly to the behavioral health authority. Six months prior to the beginning of each fiscal year, the Department shall make available to the public the standard performance contract form that it intends to use as the performance contract for that fiscal year and solicit public comments for a period of 60 days.B\n\nAny behavioral health authority may apply for the assistance provided in this chapter by submitting annually to the Department its proposed performance contract for the next fiscal year together with the approval of its board of directors and the approval by formal vote of the governing body of the city or county that established it. The behavioral health authority shall make its proposed performance contract available for public review and solicit public comments for a period of 30 days prior to submitting its proposed contract for the approval of its board of directors. To avoid disruptions in service continuity and allow sufficient time to complete public review and comment about the contract and negotiation and approval of the contract, the Department may provide up to six semi-monthly payments of state-controlled funds to the behavioral health authority. If the governing body of the city or county does not approve the proposed performance contract by September 30 of each year, the performance contract shall be deemed approved.C\n\nThe performance contract shall:1\n\nDelineate the responsibilities of the Department and the behavioral health authority;2\n\nSpecify conditions that must be met for the receipt of state-controlled funds;3\n\nIdentify the groups of individuals to be served with state-controlled funds;4\n\nSet forth specific goals and objectives related to the delivery of services to individuals with mental illness, developmental disabilities or substance use disorders that are consistent with the purposes set forth in § 37.2-601;5\n\nContain specific relevant, and measurable performance measures to assess the experiences and outcomes of individuals receiving services through behavioral health authorities;6\n\nContain relevant benchmarks and monitoring activities for each performance measure;7\n\nContain mechanisms that have been identified or developed jointly by the Department and the behavioral health authority and that will be employed collaboratively by the behavioral health authority and the state hospital to manage the utilization of state hospital beds;8\n\nContain provisions that enable the Department to enforce the performance contract in the event that the behavioral health authority fails to substantially comply with the requirements of its performance contract, which shall include:\n\t\t\t\ta. Provisions to ensure that the executive director and chairman of the behavioral health authority are notified when the behavioral health authority fails to substantially comply with the requirements of its performance contract;\n\t\t\t\tb. A remediation process to allow the behavioral health authority, after failing to substantially comply with its performance contract, to come into substantial compliance with its performance contract;\n\t\t\t\tc. Provisions for withholding or reducing funds, repayment of funds, or termination of all or part of a performance contract in accordance with the provisions of subsection E in the event that the behavioral health authority fails to come into substantial compliance with the provisions of its performance contract despite utilization of the remediation process described in subdivision b; and\n\t\t\t\td. Provisions for appeal of an enforcement action undertaken by the Department; and9\n\nInclude requirements for the behavioral health authority to report specific information about (i) its revenues, costs, and services provided; (ii) individuals served; and (iii) any other information deemed necessary by the Department, which shall be displayed in a consistent, comparable format developed by the Department.D\n\nThe Department shall develop and implement a process for regular, ongoing monitoring of the performance of behavioral health authorities to ensure compliance with the requirements of performance contracts entered into pursuant to this section.E\n\nIf a behavioral health authority fails to substantially comply with the requirements of its performance contract, the Department shall utilize the remediation process described in the performance contract to allow the behavioral health authority to come into substantial compliance. The Department shall notify the Board and the chairman of the behavioral health authority upon initiation of the remediation process and provide to the Board and chairman regular updates regarding the behavioral health authority’s progress toward coming into substantial compliance.\n\t\t\tIf a behavioral health authority fails to come into substantial compliance after utilization of the remediation process, the Department shall, after affording the behavioral health authority an adequate opportunity to use the appeal process described in the performance contract, terminate all or a portion of the performance contract.F\n\nUpon terminating all or a portion of a performance contract pursuant to subsection E, the Department may, using the state-controlled resources associated with that performance contract and after consulting with the governing body of the city or county that established the behavioral health authority that was a party to the performance contract, negotiate a performance contract with a community services board, another behavioral health authority, or a private nonprofit or for-profit organization or organizations to obtain services that were the subject of the terminated performance contract.","order_by":null,"text":{"0":{"id":306097,"text":"The Department shall develop and initiate negotiation of the performance contracts through which it provides funds to behavioral health authorities to accomplish the purposes set forth in this chapter. The Department may, notwithstanding any provision of law to the contrary, disburse state and federal funds appropriated to it for mental health, developmental, and substance abuse services directly to the behavioral health authority. Six months prior to the beginning of each fiscal year, the Department shall make available to the public the standard performance contract form that it intends to use as the performance contract for that fiscal year and solicit public comments for a period of 60 days.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":306098,"text":"Any behavioral health authority may apply for the assistance provided in this chapter by submitting annually to the Department its proposed performance contract for the next fiscal year together with the approval of its board of directors and the approval by formal vote of the governing body of the city or county that established it. The behavioral health authority shall make its proposed performance contract available for public review and solicit public comments for a period of 30 days prior to submitting its proposed contract for the approval of its board of directors. To avoid disruptions in service continuity and allow sufficient time to complete public review and comment about the contract and negotiation and approval of the contract, the Department may provide up to six semi-monthly payments of state-controlled funds to the behavioral health authority. If the governing body of the city or county does not approve the proposed performance contract by September 30 of each year, the performance contract shall be deemed approved.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":306099,"text":"The performance contract shall:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":306100,"text":"Delineate the responsibilities of the Department and the behavioral health authority;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":306101,"text":"Specify conditions that must be met for the receipt of state-controlled funds;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":306102,"text":"Identify the groups of individuals to be served with state-controlled funds;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"6":{"id":306103,"text":"Set forth specific goals and objectives related to the delivery of services to individuals with mental illness, developmental disabilities or substance use disorders that are consistent with the purposes set forth in § 37.2-601;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"7":{"id":306104,"text":"Contain specific relevant, and measurable performance measures to assess the experiences and outcomes of individuals receiving services through behavioral health authorities;","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"8":{"id":306105,"text":"Contain relevant benchmarks and monitoring activities for each performance measure;","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"C7"},"9":{"id":306106,"text":"Contain mechanisms that have been identified or developed jointly by the Department and the behavioral health authority and that will be employed collaboratively by the behavioral health authority and the state hospital to manage the utilization of state hospital beds;","type":"section","prefixes":["C","7"],"prefix":"7","entire_prefix":"C7","prefix_anchor":"C7","level":2,"prior_prefix":"C6","next_prefix":"C8"},"10":{"id":306107,"text":"Contain provisions that enable the Department to enforce the performance contract in the event that the behavioral health authority fails to substantially comply with the requirements of its performance contract, which shall include:\n\t\t\t\ta. Provisions to ensure that the executive director and chairman of the behavioral health authority are notified when the behavioral health authority fails to substantially comply with the requirements of its performance contract;\n\t\t\t\tb. A remediation process to allow the behavioral health authority, after failing to substantially comply with its performance contract, to come into substantial compliance with its performance contract;\n\t\t\t\tc. Provisions for withholding or reducing funds, repayment of funds, or termination of all or part of a performance contract in accordance with the provisions of subsection E in the event that the behavioral health authority fails to come into substantial compliance with the provisions of its performance contract despite utilization of the remediation process described in subdivision b; and\n\t\t\t\td. Provisions for appeal of an enforcement action undertaken by the Department; and","type":"section","prefixes":["C","8"],"prefix":"8","entire_prefix":"C8","prefix_anchor":"C8","level":2,"prior_prefix":"C7","next_prefix":"C9"},"11":{"id":306108,"text":"Include requirements for the behavioral health authority to report specific information about (i) its revenues, costs, and services provided; (ii) individuals served; and (iii) any other information deemed necessary by the Department, which shall be displayed in a consistent, comparable format developed by the Department.","type":"section","prefixes":["C","9"],"prefix":"9","entire_prefix":"C9","prefix_anchor":"C9","level":2,"prior_prefix":"C8","next_prefix":"D"},"12":{"id":306109,"text":"The Department shall develop and implement a process for regular, ongoing monitoring of the performance of behavioral health authorities to ensure compliance with the requirements of performance contracts entered into pursuant to this section.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C9","next_prefix":"E"},"13":{"id":306110,"text":"If a behavioral health authority fails to substantially comply with the requirements of its performance contract, the Department shall utilize the remediation process described in the performance contract to allow the behavioral health authority to come into substantial compliance. The Department shall notify the Board and the chairman of the behavioral health authority upon initiation of the remediation process and provide to the Board and chairman regular updates regarding the behavioral health authority’s progress toward coming into substantial compliance.\n\t\t\tIf a behavioral health authority fails to come into substantial compliance after utilization of the remediation process, the Department shall, after affording the behavioral health authority an adequate opportunity to use the appeal process described in the performance contract, terminate all or a portion of the performance contract.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"14":{"id":306111,"text":"Upon terminating all or a portion of a performance contract pursuant to subsection E, the Department may, using the state-controlled resources associated with that performance contract and after consulting with the governing body of the city or county that established the behavioral health authority that was a party to the performance contract, negotiate a performance contract with a community services board, another behavioral health authority, or a private nonprofit or for-profit organization or organizations to obtain services that were the subject of the terminated performance contract.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":13973,"edition_id":1,"name":"Behavioral Health Authorities","identifier":"6","label":"chapter","depth":3,"order_by":1,"parent_id":13087,"metadata":{},"date_created":"2026-06-26 03:46:28","date_modified":"2026-06-26 03:46:28","permalink":{"id":210087,"object_type":"structure","relational_id":13973,"identifier":"6","token":"37.2\/II\/6","url":"\/37.2\/II\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13087,"edition_id":1,"name":"Behavioral Health and Developmental Services","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12843,"metadata":{},"date_created":"2026-06-26 03:44:16","date_modified":"2026-06-26 03:44:16","permalink":{"id":210023,"object_type":"structure","relational_id":13087,"identifier":"II","token":"37.2\/II","url":"\/37.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12843,"edition_id":1,"name":"Behavioral Health and Developmental Services","identifier":"37.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":209673,"object_type":"structure","relational_id":12843,"identifier":"37.2","token":"37.2","url":"\/37.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":65047,"structure_id":13973,"section_number":"37.2-600","catch_line":"Definitions","url":"\/37.2-600\/","token":"37.2\/II\/6\/37.2-600","metadata":false},{"id":79192,"structure_id":13973,"section_number":"37.2-601","catch_line":"Behavioral health authorities; purpose","url":"\/37.2-601\/","token":"37.2\/II\/6\/37.2-601","metadata":false},{"id":87433,"structure_id":13973,"section_number":"37.2-602","catch_line":"Board of directors; appointment; membership","url":"\/37.2-602\/","token":"37.2\/II\/6\/37.2-602","metadata":false},{"id":86803,"structure_id":13973,"section_number":"37.2-603","catch_line":"Board of directors; terms; vacancies; removal","url":"\/37.2-603\/","token":"37.2\/II\/6\/37.2-603","metadata":false},{"id":59443,"structure_id":13973,"section_number":"37.2-604","catch_line":"Board of directors; officers; meetings","url":"\/37.2-604\/","token":"37.2\/II\/6\/37.2-604","metadata":false},{"id":83745,"structure_id":13973,"section_number":"37.2-605","catch_line":"Behavioral health authorities; powers and duties","url":"\/37.2-605\/","token":"37.2\/II\/6\/37.2-605","metadata":false},{"id":72901,"structure_id":13973,"section_number":"37.2-606","catch_line":"Coordination of services for preadmission screening and discharge planning","url":"\/37.2-606\/","token":"37.2\/II\/6\/37.2-606","metadata":false},{"id":72398,"structure_id":13973,"section_number":"37.2-607","catch_line":"Background check required","url":"\/37.2-607\/","token":"37.2\/II\/6\/37.2-607","metadata":false},{"id":85448,"structure_id":13973,"section_number":"37.2-608","catch_line":"Performance contract for mental health, developmental, and substance abuse services","url":"\/37.2-608\/","token":"37.2\/II\/6\/37.2-608","metadata":false},{"id":62038,"structure_id":13973,"section_number":"37.2-609","catch_line":"Exemption from taxation","url":"\/37.2-609\/","token":"37.2\/II\/6\/37.2-609","metadata":false},{"id":56744,"structure_id":13973,"section_number":"37.2-610","catch_line":"Transfer of facilities and assets","url":"\/37.2-610\/","token":"37.2\/II\/6\/37.2-610","metadata":false},{"id":63802,"structure_id":13973,"section_number":"37.2-611","catch_line":"Local appropriations; allocation of funds by Department; reduction of funds","url":"\/37.2-611\/","token":"37.2\/II\/6\/37.2-611","metadata":false},{"id":55036,"structure_id":13973,"section_number":"37.2-612","catch_line":"Liability for expenses of services","url":"\/37.2-612\/","token":"37.2\/II\/6\/37.2-612","metadata":false},{"id":80506,"structure_id":13973,"section_number":"37.2-613","catch_line":"Proceedings for dissolution","url":"\/37.2-613\/","token":"37.2\/II\/6\/37.2-613","metadata":false},{"id":81116,"structure_id":13973,"section_number":"37.2-614","catch_line":"When powers and duties cease to exist","url":"\/37.2-614\/","token":"37.2\/II\/6\/37.2-614","metadata":false},{"id":65686,"structure_id":13973,"section_number":"37.2-615","catch_line":"Authority to enter into joint agreements","url":"\/37.2-615\/","token":"37.2\/II\/6\/37.2-615","metadata":false}],"previous_section":{"id":72398,"structure_id":13973,"section_number":"37.2-607","catch_line":"Background check required","url":"\/37.2-607\/","token":"37.2\/II\/6\/37.2-607","metadata":false},"next_section":{"id":62038,"structure_id":13973,"section_number":"37.2-609","catch_line":"Exemption from taxation","url":"\/37.2-609\/","token":"37.2\/II\/6\/37.2-609","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/37.2-608\/","history_text":"

This law was first created in 1998. The record of its establishment is cataloged in chapter 680<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2005, chapters 75<\/a> and 716<\/a>; in 2012, chapters 476<\/a> and 507<\/a>; in 2023, chapters 484<\/a>, 754<\/a>, and 790<\/a>.<\/p>","references":[{"id":62804,"section_number":"37.2-203","catch_line":"Powers and duties of Board","order_by":null,"url":"\/37.2-203\/"},{"id":83745,"section_number":"37.2-605","catch_line":"Behavioral health authorities; powers and duties","order_by":null,"url":"\/37.2-605\/"},{"id":65686,"section_number":"37.2-615","catch_line":"Authority to enter into joint agreements","order_by":null,"url":"\/37.2-615\/"}],"refers_to":[{"id":79192,"section_number":"37.2-601","catch_line":"Behavioral health authorities; purpose","order_by":null,"url":"\/37.2-601\/"}],"permalink":{"id":210121,"object_type":"law","relational_id":85448,"identifier":"37.2-608","token":"37.2\/II\/6\/37.2-608","url":"\/37.2-608\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/37.2-608\/","token":"37.2\/II\/6\/37.2-608","dublin_core":{"Title":"Performance contract for mental health, developmental, and substance abuse services","Type":"Text","Format":"text\/html","Identifier":"\u00a7 37.2-608","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Department<\/span> shall develop and initiate negotiation of the performance contracts<\/span> through which it provides funds to behavioral health authorities to accomplish the purposes set forth in this chapter. The Department<\/span> may, notwithstanding any provision of law<\/span> to the contrary, disburse state<\/span> and federal funds appropriated to it for mental health, developmental, and substance abuse<\/span> services directly to the behavioral health authority<\/span>. Six months prior to the beginning of each fiscal year, the Department<\/span> shall make available to the public the standard performance contract<\/span> form that it intends to use as the performance contract<\/span> for that fiscal year and solicit public comments for a period of 60 days. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any behavioral health authority<\/span> may apply for the assistance provided in this chapter by submitting annually to the Department<\/span> its proposed performance contract<\/span> for the next fiscal year together with the approval of its board<\/span> of directors and the approval by formal vote of the governing body of the city or county that established it. The behavioral health authority<\/span> shall make its proposed performance contract<\/span> available for public review and solicit public comments for a period of 30 days prior to submitting its proposed contract for the approval of its board<\/span> of directors. To avoid disruptions in service continuity and allow sufficient time to complete public review and comment about the contract and negotiation and approval of the contract, the Department<\/span> may provide up to six semi-monthly payments of state<\/span>-controlled funds to the behavioral health authority<\/span>. If the governing body of the city or county does not approve the proposed performance contract<\/span> by September 30 of each year, the performance contract<\/span> shall be deemed approved. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The performance contract<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Delineate the responsibilities of the Department<\/span> and the behavioral health authority<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Specify conditions that must be met for the receipt of state<\/span>-controlled funds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Identify the groups of individuals<\/span> to be served with state<\/span>-controlled funds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Set forth specific goals and objectives related to the delivery of services to individuals<\/span> with mental illness<\/span>, developmental disabilities or substance use disorders that are consistent with the purposes set forth in § 37.2-601<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Contain specific relevant, and measurable performance measures to assess the experiences and outcomes of individuals<\/span> receiving services through behavioral health authorities; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Contain relevant benchmarks and monitoring activities for each performance measure; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Contain mechanisms that have been identified or developed jointly by the Department<\/span> and the behavioral health authority<\/span> and that will be employed collaboratively by the behavioral health authority<\/span> and the state hospital<\/span> to manage the utilization of state hospital<\/span> beds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Contain provisions that enable the Department<\/span> to enforce the performance contract<\/span> in the event that the behavioral health authority<\/span> fails to substantially comply with the requirements of its performance contract<\/span>, which shall include:\n\t\t\t\ta. Provisions to ensure that the executive director and chairman of the behavioral health authority<\/span> are notified when the behavioral health authority<\/span> fails to substantially comply with the requirements of its performance contract<\/span>;\n\t\t\t\tb. A remediation process to allow the behavioral health authority<\/span>, after failing to substantially comply with its performance contract<\/span>, to come into substantial compliance with its performance contract<\/span>;\n\t\t\t\tc. Provisions for withholding or reducing funds, repayment of funds, or termination of all or part of a performance contract<\/span> in accordance with the provisions of subsection E in the event that the behavioral health authority<\/span> fails to come into substantial compliance with the provisions of its performance contract<\/span> despite utilization of the remediation process described in subdivision b; and\n\t\t\t\td. Provisions for appeal<\/span> of an enforcement action undertaken by the Department<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Include requirements for the behavioral health authority<\/span> to report specific information about (i) its revenues, costs, and services provided; (ii) individuals<\/span> served; and (iii) any other information deemed necessary by the Department<\/span>, which shall be displayed in a consistent, comparable format developed by the Department<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Department<\/span> shall develop and implement a process for regular, ongoing monitoring of the performance of behavioral health authorities to ensure compliance with the requirements of performance contracts<\/span> entered into pursuant to this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If a behavioral health authority<\/span> fails to substantially comply with the requirements of its performance contract<\/span>, the Department<\/span> shall utilize the remediation process described in the performance contract<\/span> to allow the behavioral health authority<\/span> to come into substantial compliance. The Department<\/span> shall notify the Board<\/span> and the chairman of the behavioral health authority<\/span> upon initiation of the remediation process and provide to the Board<\/span> and chairman regular updates regarding the behavioral health authority<\/span>’s progress toward coming into substantial compliance.\n\t\t\tIf a behavioral health authority<\/span> fails to come into substantial compliance after utilization of the remediation process, the Department<\/span> shall, after affording the behavioral health authority<\/span> an adequate opportunity to use the appeal<\/span> process described in the performance contract<\/span>, terminate all or a portion of the performance contract<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Upon terminating all or a portion of a performance contract<\/span> pursuant to subsection E, the Department<\/span> may, using the state-controlled resources associated with that performance contract<\/span> and after consulting with the governing body of the city or county that established the behavioral health authority<\/span> that was a party<\/span> to the performance contract<\/span>, negotiate a performance contract<\/span> with a community services board<\/span>, another behavioral health authority<\/span>, or a private nonprofit or for-profit organization or organizations to obtain services that were the subject of the terminated performance contract<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPERFORMANCE CONTRACT FOR MENTAL HEALTH, DEVELOPMENTAL, AND SUBSTANCE ABUSE\nSERVICES (\u00a7 37.2-608)\n\nA. The Department shall develop and initiate negotiation of the performance\ncontracts through which it provides funds to behavioral health authorities to\naccomplish the purposes set forth in this chapter. The Department may,\nnotwithstanding any provision of law to the contrary, disburse state and federal\nfunds appropriated to it for mental health, developmental, and substance abuse\nservices directly to the behavioral health authority. Six months prior to the\nbeginning of each fiscal year, the Department shall make available to the public\nthe standard performance contract form that it intends to use as the performance\ncontract for that fiscal year and solicit public comments for a period of 60\ndays.\n\nB. Any behavioral health authority may apply for the assistance provided in this\nchapter by submitting annually to the Department its proposed performance\ncontract for the next fiscal year together with the approval of its board of\ndirectors and the approval by formal vote of the governing body of the city or\ncounty that established it. The behavioral health authority shall make its\nproposed performance contract available for public review and solicit public\ncomments for a period of 30 days prior to submitting its proposed contract for\nthe approval of its board of directors. To avoid disruptions in service\ncontinuity and allow sufficient time to complete public review and comment about\nthe contract and negotiation and approval of the contract, the Department may\nprovide up to six semi-monthly payments of state-controlled funds to the\nbehavioral health authority. If the governing body of the city or county does\nnot approve the proposed performance contract by September 30 of each year, the\nperformance contract shall be deemed approved.\n\nC. The performance contract shall:\n\n 1. Delineate the responsibilities of the Department and the behavioral health\n authority;\n\n 2. Specify conditions that must be met for the receipt of state-controlled\n funds;\n\n 3. Identify the groups of individuals to be served with state-controlled\n funds;\n\n 4. Set forth specific goals and objectives related to the delivery of services\n to individuals with mental illness, developmental disabilities or substance\n use disorders that are consistent with the purposes set forth in §\n 37.2-601;\n\n 5. Contain specific relevant, and measurable performance measures to assess\n the experiences and outcomes of individuals receiving services through\n behavioral health authorities;\n\n 6. Contain relevant benchmarks and monitoring activities for each performance\n measure;\n\n 7. Contain mechanisms that have been identified or developed jointly by the\n Department and the behavioral health authority and that will be employed\n collaboratively by the behavioral health authority and the state hospital to\n manage the utilization of state hospital beds;\n\n 8. Contain provisions that enable the Department to enforce the performance\n contract in the event that the behavioral health authority fails to\n substantially comply with the requirements of its performance contract, which\n shall include:\n \t\t\t\ta. Provisions to ensure that the executive director and chairman of the\n behavioral health authority are notified when the behavioral health authority\n fails to substantially comply with the requirements of its performance\n contract;\n \t\t\t\tb. A remediation process to allow the behavioral health authority, after\n failing to substantially comply with its performance contract, to come into\n substantial compliance with its performance contract;\n \t\t\t\tc. Provisions for withholding or reducing funds, repayment of funds, or\n termination of all or part of a performance contract in accordance with the\n provisions of subsection E in the event that the behavioral health authority\n fails to come into substantial compliance with the provisions of its\n performance contract despite utilization of the remediation process described\n in subdivision b; and\n \t\t\t\td. Provisions for appeal of an enforcement action undertaken by the\n Department; and\n\n 9. Include requirements for the behavioral health authority to report specific\n information about (i) its revenues, costs, and services provided; (ii)\n individuals served; and (iii) any other information deemed necessary by the\n Department, which shall be displayed in a consistent, comparable format\n developed by the Department.\n\nD. The Department shall develop and implement a process for regular, ongoing\nmonitoring of the performance of behavioral health authorities to ensure\ncompliance with the requirements of performance contracts entered into pursuant\nto this section.\n\nE. If a behavioral health authority fails to substantially comply with the\nrequirements of its performance contract, the Department shall utilize the\nremediation process described in the performance contract to allow the\nbehavioral health authority to come into substantial compliance. The Department\nshall notify the Board and the chairman of the behavioral health authority upon\ninitiation of the remediation process and provide to the Board and chairman\nregular updates regarding the behavioral health authority’s progress\ntoward coming into substantial compliance.\n\t\t\tIf a behavioral health authority fails to come into substantial compliance\nafter utilization of the remediation process, the Department shall, after\naffording the behavioral health authority an adequate opportunity to use the\nappeal process described in the performance contract, terminate all or a portion\nof the performance contract.\n\nF. Upon terminating all or a portion of a performance contract pursuant to\nsubsection E, the Department may, using the state-controlled resources\nassociated with that performance contract and after consulting with the\ngoverning body of the city or county that established the behavioral health\nauthority that was a party to the performance contract, negotiate a performance\ncontract with a community services board, another behavioral health authority,\nor a private nonprofit or for-profit organization or organizations to obtain\nservices that were the subject of the terminated performance contract.\n\nHISTORY: 1998, c. 680, \u00a7 37.1-248.1; 2005, cc. 75, 716; 2012, cc. 476, 507;\n2023, cc. 484, 754, 790.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}