Indiana FSSA Issues RFP for Second Short-Term Residential Facility for Disabled Adults
The Indiana Family and Social Services Administration issued a request for proposals for a provider to operate a 10-20 bed short-term residential facility for intellectually disabled adults with severe behavioral, psychiatric, or medical needs. The facility would replace a co-ed facility that closed in 2024 and address a service gap, particularly for women, as Indiana's only existing comprehensive rehabilitative management needs facility serves men only. The current per diem rate for such facilities is $703. Disability advocates have raised concerns that the new facility, combined with recent changes to Medicaid waiver assessments that have resulted in higher denial rates, could signal a shift toward institutionalization rather than community-based care.
The RFP reflects Indiana's effort to address an immediate capacity gap in crisis stabilization services for disabled adults, but raises operational questions for Medicaid LTSS providers about whether tightened waiver eligibility and inadequate community funding may be driving increased demand for institutional placements.
LTSS
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