The New York State Office of Addiction Services and Supports (OASAS) intends to request information about vendors that can review the current system of financing addiction services authorized under Articles 25 and 41 of New York State Mental Hygiene Law to:
- Make recommendations for changes designed to ensure the equitable reimbursement of substance use disorder (SUD) and gambling services consistent with State law and Federal regulations which is conducive to the provision of effective and high quality services and
- To assist in the implementation of the selected methodology.
OASAS currently funds approved net operating deficits for services. The net operating cost of a program is determined as total operating expenses approved by OASAS, less all sources of revenue. This operational deficit, or net deficit, is then funded by OASAS as State aid which consists of State General Fund, Federal Substance Abuse Prevention and Treatment Block Grant (SABG), or other Special Revenue Funds. OASAS may fund up to 100 percent of the net operating deficit of a provider. State aid is paid as an advance payment based on the approved program budget either quarterly for non-Federal funds or monthly for Federal funds. The approved budget for an existing funded program is often based on historical funding patterns. As a result, the State aid funding for older programs may be inconsistent with the State aid funding provided to new programs which creates inequities for the same type of services, even within the same geographic area.
To address these inconsistencies, OASAS is issuing this Request for Information (RFI) to seek alternate funding approaches that will provide greater equity in funding addiction services while maintaining compliance with Federal SABG expenditure rules.
November 28, 2022
RFI and Supporting Documentation
Attachment B for the RFI: Restructure Addiction Services Financing