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Providers tell Kentucky committee reimbursement rates haven’t kept pace with inflation, urge rate increases
Summary
Department of Corrections and halfway-house providers told the legislature that contracted residential reentry beds and Recovery Kentucky centers serve thousands but reimbursement rates set in 2019 have not kept pace with inflation, leaving providers short-staffed and financially ‘strapped.’
At a Feb. 11 Public Safety and Judiciary Subcommittee meeting, Department of Corrections Deputy Commissioner Hillary Daley and community provider leaders described the state’s halfway-house and Recovery Kentucky network, urged attention to reimbursement rates and offered to provide outcome data to the committee.
Daley told lawmakers the department contracts for up to 1,752 halfway-house beds and 780 Recovery Kentucky beds across 16 halfway houses and 13 Recovery Kentucky centers, and that in fiscal year 2025 there were 6,329 admissions to those programs. She said current average daily populations are roughly 1,041 for halfway houses and 494 for Recovery Kentucky centers and listed evidence-based programming available at many…
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