Single Source Procurement: Money Follows the Person Demonstration (MFP) - Volunteer Caregiver Demonstration Project

Pursuant to New York State Finance Law § 163.10(b), The New York State Department of Health (DOH) is presenting the following summary of relevant circumstances, and material and substantial reasons why a competitive procurement was not feasible.

The Money Follows the Person Demonstration (MFP) was created by section 6071 of the Deficit Reduction Act of 2005, and extended through FFY 2016 by Section 2430 of the Affordable Care Act. The MFP Demonstration provides enhanced Federal Medical Assistance Percentage (FMAP) reimbursement for select services provided to persons transitioning from a nursing home to community based care, after having been in the nursing home for more than ninety days. In 2007, the federal Centers for Medicare and Medicaid Services (CMS) approved New York State's participation in the MFP Demonstration.

Community Caregiver's model of utilizing volunteers to provide non-medical services to keep individuals in their communities is an effective and efficient way to keep people out of costly institutions and also allows individuals to maintain their independence, dignity and quality of life within their homes and communities. Community Caregiver's caregiving model of "neighbors helping neighbors" aligns with MFP's goal of providing supports that allows the elderly and individuals with disabilities retain their independence by living in the community and therefore providing savings to the government and families by avoiding costly institutionalization. The model also aligns with the Medicaid Redesign Team's (MRT) goal of cost savings to Medicaid and the State. With issuance of Executive Order #5, Governor Andrew M. Cuomo established the Medicaid Redesign Team (MRT) in January 2011, bringing together a group of health stakeholders, experts and advocates from throughout New York State. The goals of the MRT are to improve overall health system quality and efficiency, streamline and focus health care administration and financial structures, and reduce Medicaid costs while emphasizing the delivery of well-managed, cost effective quality health services.

A goal of DOH is to use the Community Caregiver model and build capacity to provide these services free of charge in other areas of the state. Funding the proposed project will create the opportunity for Community Caregivers to offer their mentorship to other community based organizations interested in replicating this program in their communities and build greater capacity with the state and inform the development of a competitive procurement to expand the project to other areas of the State. The success of the proposed contract will play an important role in the development of this innovative project. It is anticipated that a Request for Applications (RFA) will be issued to solicit applications from not-for-profit agencies following the completion of this project.

Procurement / Program Name Money Follows the Person Demonstration (MFP) - Volunteer Caregiver Demonstration Project
Contractor Name(s) Community Caregivers, Inc.
Contract Period 1/1/2014 – 12/31/2014
Contract Number(s) C029325