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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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9/3/19  1:51 pm
Commenter: Susan Keenan, Community Living Alternatives

Requirements for 90 Days of Operating Expenses

Community Living Alternatives has been providing housing and supports to individuals with Developmental and Intellectual Disabilities for over 30 years.  As a non-profit agency meeting rigorous requirements of both the Department of Behavioral Health and Disability Services and generally accepted accounting and auditing standards, we fully support the expectation for providers to be fiscally responsible.  However, we find the requirements proposed in the Guidance Document “Requirements for 90 Days of Operating Expenses” to be unreasonable. 

Specifically we are concerned with the statement in the guidance document:  “Therefore, both applicants of licensure and licensed providers must be able to provide proof, at any time when requested by a representative from the department, that they have sufficient funds for 90 days of operating expenses, whether in case or a line of credit.”  This language omits the inclusion of “projected income” in the original regulation and presents an unrealistic expectation of providers which ultimately has the potential to negatively impact individuals.   

With current Medicaid rates already inadequate to provide the level of care necessary for many individuals supported, it is difficult, if not impossible to generate enough funds to create 90 days of reserves, especially without including any forecasted revenues.  Having such a significant requirement creates an additional hindrance for providers who are already facing a significant staffing crisis while we must keep additional funding sitting idly on hand instead of using it to make improvements or enhance the supports we could provide. 

CLA agrees with and supports the comments made by VNPP regarding this guidance document. Thank you for the opportunity to provide our comments on this matter.

CommentID: 75911