                                 CODE OF VIRGINIA

PERFORMANCE CONTRACT FOR MENTAL HEALTH, DEVELOPMENTAL, AND SUBSTANCE ABUSE
SERVICES (§ 37.2-608)

A. 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.

B. 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.

C. The performance contract shall:

   1. Delineate the responsibilities of the Department and the behavioral health
   authority;

   2. Specify conditions that must be met for the receipt of state-controlled
   funds;

   3. Identify the groups of individuals to be served with state-controlled
   funds;

   4. 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 &#xA7;
   37.2-601;

   5. Contain specific relevant, and measurable performance measures to assess
   the experiences and outcomes of individuals receiving services through
   behavioral health authorities;

   6. Contain relevant benchmarks and monitoring activities for each performance
   measure;

   7. 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;

   8. 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:
   				a. 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;
   				b. 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;
   				c. 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
   				d. Provisions for appeal of an enforcement action undertaken by the
   Department; and

   9. 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.

D. 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.

E. 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&#8217;s progress
toward coming into substantial compliance.
			If 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. 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.

HISTORY: 1998, c. 680, § 37.1-248.1; 2005, cc. 75, 716; 2012, cc. 476, 507;
2023, cc. 484, 754, 790.