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What is results-based funding and how will it affect me?

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What is results-based funding and how will it affect me?

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Results-based funding is a payment system being introduced to supported employment and job placement services that are contracted with Vocational Rehabilitation Services in Indiana. Under this payment system, a supported employment service provider is paid only when certain goals are achieved for the persons served. For example, the provider is paid when the individual gets a job, when s/he has maintained that job for a specified period of time, etc., instead of being paid at an hourly rate, which is the current method of payment. Vocational Rehabilitation Services plans to begin this new payment system on July 1, 2006. In July 2002, the SECT Center launched a research pilot project involving five Indiana mental health centers to compare results-based funding with traditional fee-for-service (hourly rate) funding to determine its effectiveness, differences in service provision, and associated issues. For a copy of the final report for this project, click here.

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