Vendorization - What is it? Vendorization is the process by which Regional Centers approve prospective vendors to provide services to Regional Center consumers. There are 21 Regional Centers in California. Regional Centers provide assessments, case management services and purchase services for people with developmental disabilities. Each Regional Center is responsible for a defined geographic area. Inland Regional Center provides services in San Bernardino and Riverside Counties. Regional Centers may vendor only those providers who reside within their assigned catchment area. Prospective vendors are advised to contact the Regional Center Resource Development Unit before developing services to discuss the need for the proposed service and any local issues and concerns. Regional Centers may have additional information about services that can assist a prospective vendor. Taking this step can save prospective vendors money and time and start the relationship with the Regional Center on a positive note! To become a vendor, the prospective provider must complete an application packet. The application packet will include a variety of forms, all of which must be completed. Depending on what service the provider wants to provide, there may be licensing, certification and program design requirements which must be met before an application is accepted by the regional center. The requirements for each service category are specified in Title 17, California Code of Regulations, Section 54302. The prospective vendor returns the application packet and required license(s)/certification(s) to the regional center. The regional center then has 45 days from the date of receipt of the completed application to determine if the applicant meets the requirements of Title 17, and if the applicant possesses the skills necessary to provide quality services required by Inland Regional Center. If approved, the regional center issues a Vendor Approval Letter that contains the provider’s Vendor Identification Number, approved service code and effective date. If the application is denied, the provider will receive a letter stating the reasons for the denial and the provider’s appeal rights, in accordance with Title 17 Regulations. Completing the vendorization process, does NOT guarantee nor imply availability of individual referrals or placements. Vendorization is not a blanket process. Each service must be vendored separately. For example, if a service provider offers residential and out of home respite, both services must be vendored and approved separately. Vendors should retain the approval letter(s) issued by the regional center, as this letter contains the Vendor Identification Number, service code and effective date that will be needed to bill the regional center for services. The vendor’s rate is determined by the service category type. This information is also specified in Title 17 Regulations. There are several types of rate methodology structures. They include: a) SMA- the Schedule of Maximum Allowable rate for the service provided as established by the Department of Health Services for services reimbursable under the Medi-Cal program; b) Negotiated Rate - the rate is mutually agreed upon by the regional center and the service provider for a specific service and time frame; c) Cost Statement - is based upon the vendor’s program, allowable cost, consumer attendance, vendor income, and as applicable, regional center payment information. Additionally, some rates are established by the Department of Developmental Services. The type of rate structure paid to the service provider is referenced in the Vendor Approval Letter. Vendorization must be completed before services are provided as Title 17 prohibits regional centers from paying for services that are provided prior to vendorization. Once vendored, the provider’s demographic and approved service information is added to the Statewide Vendor Panel, which provides access to each of the 21 regional centers to authorize and purchase services from the service provider. Regional Center contracts with vendors, they are not employees of the Regional Center or the Department of Developmental Services. Vendors are responsible for complying with all State and Federal employment and tax laws. Vendorization is non-transferable. Title 17 California Code of Regulations prohibits vendors from transferring vendorization of their service to another person or entity. The vendor must notify the vendoring regional center at least 30 days prior to any change in ownership, location or in the required license, certificate, registration, credential or permit. When a change of ownership occurs, the new owner must meet the requirements for vendorization, including all licensing/registration/certification requirements for the service being provided. Vendors must notify the vendoring regional center and all user centers in writing at least 60 days before discontinuing service or making modifications to the program design or service curriculum. In addition to the requirements specified above, all vendors are required to do the following:
a)Such records shall be maintained for a minimum of five years from the date of origination or until audit findings have been resolved, whichever is longer. b) Records must be specific to the date, actual service time, location, nature of services provided, units of service provided and consumer’s name. c) Attendance data, as specified above, for the billing period shall be submitted to the regional center with the billings/invoices.
Vendorization may be terminated by the regional center if the vendor is in violation of regulations. Termination may occur when:
A vendor or an applicant has the right to appeal denial of vendorization, termination of vendorization or failure of the regional center to comply with regulations in accordance with Title 17, Sections 54380 - 54390. You may review Title 17 California Code of Regulations and the Lanterman Act, Welfare & Institutions Code by accessing this internet web address: http://www.dds.ca.gov. Sections 50500 through 50550 . . . . . . . . . . . Clients Rights Sections 50605 through 50767 . . . . . . . . . . . . Service Provider Accountability & Audit Standards Sections 54300 through 54390 . . . . . . . . . . . . Vendorization and Service Code Information Sections 54380 through 54390 . . . . . . . . . . . . Vendor Appeal Procedure
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