The Office of Developmental Programs (ODP) has released a significant update on the status of the Performance-Based Contracting (PBC) framework for Supports Coordination Organizations (SCO). Key changes reflect both public feedback and a shift towards a more unified and outcomes-driven service system. Based on comments from over 140 stakeholders, ODP has confirmed that all SCOs will be held to the same performance standards through a phased approach — eliminating previously proposed tiers. The timeline for tier determination has been adjusted (now set for 8/15/25 – 9/15/25), with performance measure submissions required between 10/1/25 – 11/1/25 to allow time for preparation and systems development.

In terms of payment structure, the transition to a monthly case rate model for all SCOs is scheduled to begin July 1, 2026. The definition of “Intensive TSM” has been revised, and billing guidance will now include qualified tasks for Associate SCs. These changes reflect a broader move away from task-based reimbursement toward an outcome- and quality-focused model, aligning with CMS’s HCBS Quality Measure Set and Pennsylvania’s population health priorities.

Next steps include the submission of 1915(b)(4) and (c) waiver amendments to CMS in late July, publication of finalized documents (including an implementation guide and preparedness toolkit), and SCO forums starting July 28. A new Performance Analysis Services (PAS) vendor is also developing a data system to support outcome tracking and analysis. ODP emphasizes that this transition requires a mindset shift — from measuring quantity to prioritizing quality and individual outcomes such as employment, community living, and health stabilization.