Performance-Based Contracting (PBC) Resource Page

To improve quality, ODP changed the way residential services are managed and is preparing to make changes to the management of supports coordination services. This new way of managing is called “performance-based contracting.”

Changes have been made to residential services, which includes Residential Habilitation, Life Sharing, and Supported Living services, in the Consolidated and Community Living Waivers in January 2025. Changes to supports coordination services in the Consolidated, Community Living, and Person/Family Directed Support Waivers will begin in January 2026.

Performance-Based Contracting establishes performance standards for residential providers and Supports Coordination Organizations with the goals of service sustainability, quality improvement, improving clinical capacity to serve individuals and families with complex needs, and implementing strategies to support the workforce.

Sustainability includes Continuum of Services and Employment. Workforce includes reforming payment and billing, specialized professional training, stability, and technology. Responsiveness includes referral and discharge standards, family engagement, and satisfaction. Clinical capacity includes clinical knowledge, trauma-informed practices and crisis intervention training, and wellness