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KDADS splits aging and disability resource center contracts; state cites conflict-of-interest concerns and timeliness problems
Summary
KDADS officials told auditors the agency separated ADRC services into two contractsfunctional assessments (awarded to Maximus) and other ADRC services (awarded to Liberty) to avoid perceived conflicts of interest and to address long-standing timeliness problems with waiver assessments.
Kansas Department for Aging and Disability Services officials told the Legislative Post Audit Committee they restructured contracts for Aging and Disability Resource Center (ADRC) services to reduce an appearance of conflict of interest and to address long-standing timeliness problems with Home and Community Based Services (HCBS) waiver assessments.
The ADRC program provides centralized information, counseling and access to services that help Kansans who are aging or have disabilities remain in the community. From 2012 until June 2025 the state contracted with the 11 Area Agencies on Aging (AAAs) to provide ADRC functions statewide. KDADS told auditors it split the single AAA contract into two awards in 2024: one contract for HCBS waiver functional assessments (awarded to Maximus US Services) and a separate contract for remaining ADRC services (awarded to Liberty Healthcare Corporation).
KDADS officials said the change had two objectives. First, they said carrying out functional assessments while an entity also provided services could create a perceived or actual conflict of interest (a concern tied to federal CMS policy on self-referral). KDADS told auditors and the committee it wanted to remove any possible appearance that the same entity that assesses a person's eligibility would also provide or profit from recommended services. Second, KDADS said persistent delays in completing waiver assessments had placed the state on a CMS quality improvement plan; the department said a focused contractor for assessments should improve timeliness.
Auditors reported KDADS advised AAAs they could bid on either contract but would not receive both because of the conflict-of-interest concern. AAAs submitted a bid for the HCBS assessment contract but did not win the award; KDADS said technical issues prevented AAAs from submitting a timely bid for the ADRC services contract. Leslie Anderson, executive director of the Kansas Association of Area Agencies on Aging and Disabilities, told the committee that the contract changes threaten service integration and estimated the AAA network would lose about $5 million a year in revenue that funded assessments and options counseling. Anderson said fragmented systems and unreliable management information (she pointed to data reliability problems in the state's case-management systems) risk reduced access and efficiency.
KDADS officials said they encourage AAAs to continue providing other aging services and that the state expects regional staff and in-state contractors to continue face-to-face assessments. The department also said it will monitor performance and that a follow-up audit of HCBS and related processes is planned. KDADS representatives and the new contractors told the committee they expected a transition period and that staff hires and regional service delivery would continue.
Committee members pressed KDADS about how the assessment work will be staffed and whether the state could preserve rural access; KDADS said regional staff would be used for in-person work and that the new contractors will operate with local Kansas-based assessors. Auditors did not conclude whether the change will improve timeliness; they reported reasons declared by KDADS and concerns raised by the AAAs and noted that further monitoring and follow-up will be needed to evaluate whether the split meets its objectives.
