Connecticut General Statutes Title 4. Management of State Agencies § 4-220. Nonprofit provider retention of state contract savings. Definitions. Requirements

(a) As used in this section, (1) “private provider organization” and “purchase of service contract” each have the same meanings as provided in section 4-70b; (2) “health and human services” means services provided under contract with a state agency that directly support the health, safety and welfare of residents, including, but not limited to, those residents who may have conditions that include, but are not limited to, behavioral health disorders, intellectual disabilities, developmental disabilities, physical disabilities and autism spectrum disorder; (3) “attempt to recover or otherwise offset” means efforts to recoup savings at the end of each fiscal year; and (4) “state agency” means the Departments of Developmental Services, Mental Health and Addiction Services, Social Services and Children and Families.

(b) Subject to the provisions of subsection (c) of this section, each state agency that contracts with a nonprofit private provider organization for health and human services shall allow such nonprofit organization that otherwise meets contractual requirements, including, but not limited to, its contractual obligations regarding services provided and clients served, to retain any savings from a purchase of service contract at the end of each fiscal year. No state agency shall attempt to recover or otherwise offset funds retained by such nonprofit organization from the contracted cost for services.

(c) Any nonprofit private provider organization allowed to retain savings under this section shall submit an application to the contracting state agency on how savings are planned to be reinvested and report to the contracting state agency on how savings will be reinvested to strengthen quality, invest in deferred maintenance and make asset improvements. The commissioner of each state agency shall prescribe the form and manner of such application form and the frequency of such reports. The commissioner of each state agency shall review an application submitted pursuant to this subsection and respond to a nonprofit private provider organization not later than ninety days after receiving such application from such provider organization. Retained funds may only be used for the purposes of strengthening quality, investing in deferred maintenance and making asset improvements. The commissioner of each state agency shall approve, disapprove or modify any application for funds in accordance with the allowable uses in this subsection. Nonprofit private provider organizations providing health and human services shall be permitted to expend retained funds on programs that are funded by the same state agency.

(d) Notwithstanding any provisions to the contrary in this section, a state agency shall not allow a nonprofit private provider organization to retain surplus funds from the contracted cost of services under a contract funded in whole, or in part, with federal funds when allowing such organization to retain such funds would jeopardize federal funding or reimbursement for such contract or when such allowance is prohibited by federal law or regulations.

(e) The Commissioner of Social Services, in consultation with the Secretary of the Office of Policy and Management and the Commissioners of Children and Families, Mental Health and Addiction Services and Developmental Services, may undertake a study of the contracting and billing practices of such nonprofit private provider organizations to ensure compliance with all Medicaid waivers and Medicaid state plan amendments. Any study started under this subsection shall be completed not later than December 31, 2024.

(f) Notwithstanding the provisions of subsections (a) to (e), inclusive, of this section, the Commissioner of Developmental Services, in consultation with the Secretary of the Office of Policy and Management, may extend the provisions of this section to other private provider organizations with which the Department of Developmental Services contracts, provided they meet all of the requirements set forth in this section, including, but not limited to, meeting all terms and conditions of their contracts for services with the Department of Developmental Services.