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Virginia Regulatory Town Hall
Department of Behavioral Health and Developmental Services
Guidance Document Change: This is a new guidance document regarding the current requirement for 90 days of operating expenses per the Rules and Regulations for Licensing Providers by the Department of Behavioral Health and Developmental Services (12VAC35-105).
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9/4/19  5:42 pm
Commenter: Gary W, Wilburn, DePaul Community Resources

Requirement for 90 Days of Operating Expenses


Comments contained in this communication are related to the draft guidance document regarding the ”Requirement for 90 Days of Operating Expenses.”


DePaul Community Resources has provided services to children and families in Virginia for over forty years.  We have provided numerous services to those with Intellectual and Developmental Disabilities for over twenty years of that time.  Our services locations, like many of the responding providers, cover a large geographic footprint and subsequently interact with numerous licensing specialist, human rights advocates, community resource consultants and referral sources.  The guidance document provided for review is of concern in that it places in regulation, or at the very least in how the regulation is interpreted, criteria or expectations for compliance that are not supported and could be interpreted differently from one licensing region to another.  Organizationally, in the consideration of resources,  the absence of projected revenue or accounts receivables for services previously rendered places an undue burden on the cash flows or resources of an organization. 


 It is felt that the changes in interpretation will also have an unfortunate consequence for existing providers who for many years have been able to show the required financial capacity through use of a variety of resources that include access to retirement funds with hardship withdrawal provisions as well as resources that are not reflected separately in “buckets” of accounts for deposit of funds, cash on hand for payment of mortgage or rent, and an account for monthly expenses.  The provider homes are just that – homes.  We expect them to have multiple skills but financial accounting or creation of line item budgets with cash flow projections is generally not one of them.  The thought of having 60-days to bring these homes into compliance with the new interpretation after many years of being in compliance under the “old” interpretation is not fair to the home or the individuals served in them.


It is felt that these interpretations will serve to slow and/or restrict development of services in some geographic areas that lack services due to economic or financial considerations impacting those areas.  At a time when the development of service resources to serve individuals should be supported and encouraged this has a more restrictive feel.  Whether a service organization or a home provider, all should be financially responsible and practicing good resource management. Some may need the time and support to get there.


Further thought needs to be given to this guidance document. Further clarity will need to be provided to prevent confusion related to interpretation and application of the provisions when licensing reviews are being conducted across the regions.   


CommentID: 76013