Amidst tight budgets and numerous competing agendas, public agencies are under increasing pressure to maximize resources and produce results. PCG supports public agencies by employing innovative, evidence-based practices to design purchasing and payment strategies aligned with agency objectives. The strategies public agencies often use involve risk sharing between the public sector and the private sector. Common purchasing and payment reform strategies include:

  • Development of rates based on costs associated with best practices;
  • Administrative care management entities (such as lead agencies and provider consortiums) that share some financial risk for managing a range of services for a selected population;
  • Blended, capitated, or case rates that incorporate certain expectations of performance such as level of care and length of care; and
  • Outcomes based incentive payments or bonuses.

PCG has the experience and capabilities to design a purchasing and payment strategy that supports your desired outcomes.

Purchase of Services Reform Management Services Include

Facilitation and Strategic Planning

PCG can help successfully coordinate strategic planning on many levels. PCG supports agency strategic planning by facilitating leadership meetings, managing stakeholder engagement, and overseeing the development of outcomes and objectives.

Data Analysis and Research

PCG can carry out a current performance analysis, identify performance and service gaps as well as evaluate current caseload variation and caseload mix.

Multi-state Outreach

PCG’s breadth of expertise with agencies across the nation offers high quality rate reviews, a thorough market analysis and tested contracting practices.

Payment Model Design and Rate Setting

PCG can assess program design by doing a cost analysis, utilization analysis, development of risk pools/corridors and an analysis of associations between cost and performance.

Implementation Planning

PCG can take program design to the next level by setting up strong foundations for implementation via action planning and ensure sustained success with implementation monitoring.

Performance Monitoring

PCG can help support sustainable change by managing reporting, data dashboards, capacity building, continuous quality improvement, training and technical assistance.

Key Project Examples

  • PCG partnered with the Indiana Department of Child Services (DCS) to develop residential and contracted foster care provider rates. As part of this work, PCG analyzed child welfare contracting and rate setting processes nationwide and conducted extensive peer state reviews of provider financial information.
  • PCG performed a cost evaluation of Texas’ Foster Care Redesign Model. This particular model transfers contracting and placement responsibilities to a Single Source Continuum of Care provider that then develops a network of providers in a community. PCG made recommendations to improve the funding model.
  • PCG conducted a comprehensive program evaluation on vocational rehabilitation services for the Kansas Department for Children and Families (DCF). In addition to gaining a better understanding of the activities and costs associated with the services, PCG analyzed provider performance to identify correlations between provider characteristics and more desirable outcomes. PCG then used the results of the study to develop recommendations for rate reforms for Kansas DCF.
  • PCG is supporting the state of Michigan’s Department of Health and Human Services in developing and testing an innovative performance-based child welfare system. Combining principles of sustainable change with a solidly built payment model informed by multiple stakeholders, PCG is laying the ground work for a lasting system that promotes better outcomes for Michigan’s children and families.


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