'Monumental change': Texas to overhaul how it pays for foster care
During the most recent legislative session, lawmakers approved the funding necessary to "modernize" the way it pays the families and providers who care for children in the system.
AUTIN (KXAN) -- For the first time in decades, Texas will overhaul the way it funds foster care.
During the most recent legislative session, lawmakers approved the funding necessary to "modernize" the way it pays the families and providers who care for children in the system.
According to the Department of Family and Protective Services, the methodology for calculating the cost of care has remained "largely unchanged" over the years, despite advancements in technology, data collection and other changes to the child welfare system.
Historically, the state has paid foster families and treatment providers a set daily rate, per child. The amount depended on one of five service “levels” -- from Basic up to Intense Plus.
Katie Olse, CEO of the Alliance of Child and Family Services, explained that while the needs of a child can change over time, the necessary dollars to care for them aren't always as flexible, under the current level system.
For example, she explained, "a child may really stabilize and do very well in a setting, and then they may have to move because that setting may only be contracted or paid to provide this type of care."
She went on to say, "Really, what we need to do is build a system that adapts around the child and works and follows with that child."
What will change?
In 2020, a consulting group contracted by the state published the results of a report, which found the current system did not realistically reflect the time and cost of staffing and providing care and also did not reward providers for helping a child improve.
DFPS presented the results of the study to lawmakers during the 87th legislative session in 2021, and the legislature directed the state to develop a new rate methodology, which they approved and funded this spring, during the 88th legislature.
Under the new system, the state will purchase different service packages and reimburse families or providers for the actual services provided in those packages.
"The child may not have to disrupt and move, just because they are doing well. And the payment won't change and disincentivize that provider from continuing to serve that child," she said. "We are really focused now on the child: what are the child's individual needs? And how do we build out a service package that can meet that child's needs?"
She explained that more than 20 different service packages have already been defined and designed "based on real data and real children's needs."
Jesse Booher, the DePelchin Children's Center Senior Vice President and Chief Operations Officer of , said providers were glad to see this effort "cross the finish line" after so many years.
"The types of children that are coming into foster care now are experiencing more severe, much more complex trauma. And therefore, the ways in which that trauma is manifesting is much more severe and much more complex," he said, adding that it was time for a change.
Rate modernization is expected to take a few years to fully implement. The level structure will remain in place during the transition.
"It won't be a switch that gets flipped overnight. It's something that will take time to implement just because it is such a monumental change," Booher said.
Olse agreed, saying the rollout wouldn't be "perfect." However, the effort faced little pushback at the Capitol, and she believes the collaboration between the state agencies, providers, families, advocates and lawmakers is a good sign.
"We're all very committed to the end goal, which is resources being spent the right way to help serve children and families in communities and help to get out of the system successfully."