Review Of Texas Foster Care Rate Methodology Finds Rates Not Matched To Cost Of Care

The rates the Texas Department of Family and Protective Services (DFPS) pays for foster care placements do not clearly align to the cost of care, according to a review of the state’s rate methodology. The rates align to children’s assessed service levels, rather than specific program models and costs. Further, the rates for various service levels do not reflect current placement costs or associated staff time and effort at each service level. Because the cost reports do not isolate costs by service level, DFPS is not able to determine how well the current rates cover actual costs.

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