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Department of Developmental Services May revision proposes earlier end to hold‑harmless, quality incentives and other changes; LAO asks for assumptions
Summary
DDS Director Pete Chervenka told the Senate subcommittee the May revision retains program growth while proposing cost‑management steps including an earlier end to a rate reform hold‑harmless period, a quality‑incentive payment approach tied to provider compliance, and adjustments to the Self‑Determination Program.
Pete Chervenka, director of the Department of Developmental Services (DDS), told the subcommittee the May revision continues overall program growth but includes a package of proposals intended to "bend future cost curves" while preserving core entitlements under the Lanterman Act.
What the administration proposed
- The May revision includes an adjustment to end the hold‑harmless policy and to accelerate certain rate‑reform timing by four months earlier than originally planned, which the department scored as a near‑term savings item.
- A proposed quality incentive program would condition some provider payments on meeting…
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