FAQs About Vendorization

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Q. What is vendorization and what is its purpose?

A. Vendorization is the process for identification, selection, and utilization of service providers based on the qualifications and other requirements necessary in order to provide the
services. The vendorization process allows regional centers to verify, prior to the provision of services to consumers, that an applicant meets all of the requirements and standards
specified in regulations. Applicants who meet the specified requirements and standards are
assigned a unique vendor identification number and service code. 

Q. Are service providers vendored by DDS or regional centers?

A. DDS does not vendor service providers. Service providers are vendored by the regional
center in whose catchment area the service is located, known as the vendoring regional
center. Although vendors are prohibited from being vendored by more than one regional
center, a vendored service provider may be utilized by non-vendoring regional centers, known as "user" or "utilizing" regional centers, as well as the vendoring regional center. The
vendor identification number assigned by the vendoring regional center must be used by all
regional centers purchasing the vendored service.  (Title 17, CCR, Sections 54326(a)(14) and 54340(a)).

Q. What are the different roles of the Department and regional centers in vendoring service providers?

A. The vendoring regional center is responsible for ensuring that the applicant meets
licensing and Title 17 requirements for vendorization, determining the appropriate vendor
category for the service to be provided, and approving or disapproving vendorization based
upon their review of the documentation submitted by the applicant. Although not involved in the vendorization process, the Department does establish rates for community-based day
programs, infant development program, independent living services, work activity program,
supported employment, and respite agencies after completion of vendorization.

Q. What documentation do I need to submit to the regional center when
requesting vendorization?

A. In addition to a Vendor Application (Form DS 1890), applicants must submit the
documentation specified in Title 17, Section 54310. Contact your local regional center for a
vendorization package.

Q. If I meet all of the requirements, must a regional center vendor me?

A. A regional center must vendor an applicant who meets all the requirements for the service to be provided if the service is to be provided in that regional center's catchment area. While a program cannot be denied vendorization due to a perceived lack of need for the service by the vendoring regional center, vendorization in no way obligates that regional center to
purchase service from that vendor. (Title 17, Section 54320)

Q. How long might the vendorization process take?

A. Once a potential service provider has obtained all necessary licenses, submitted a
complete application and all necessary documentation to the vendoring regional center, the
regional center has 45 days to approve or disapprove vendorization. (Title 17, Sections 54320, 54322, 54380)

Q. Do I have to be vendored by each regional center that uses my service?

A. No. You must be vendored by the regional center in whose catchment area you are
located only. Once vendored, any regional center may refer consumers to that program.

Q. How can I determine in which regional center's catchment area my
program/service is located?

A. Location for site-based programs is determined based upon the address of the program
site. For programs which are conducted solely in the community, location is determined
based upon the vendor's business address. (link to map/list of regional centers' catchment
) (Title 17, Section 54340)

Q. Does my program have to be licensed?

A. Most site-based programs have to be licensed by the Departments of Social Services or
Health Services (See Title 17, Sections 54342, 56740, 56760(a)(1)).

Q. Where do I find licensing requirements?

A. Department of Social Services' licensing requirements may be found in Title 22 of the
California Code of Regulations. For Department of Health Services licensing requirements, call (916) 445-2070.

Q. What are community-based day programs?

A. Community-based day programs are programs which provide services to individuals on
less than a 24-hour basis in the community. Per regulations, only activity centers, adult
development centers, behavior management programs, independent living programs, infant
development programs, and social recreation programs, work activity program are
community-based day programs. Requirements for community-based day programs are
discussed in Title 17, Sections 56710 through 56774.

Q. What are miscellaneous services?

A. Miscellaneous services are goods or services which are not similar to any of the descriptions of goods or services specified in regulations. A new miscellaneous service code must be
requested by the regional center and approved by the Department prior to vendorization of
that service. Once a miscellaneous service code has been established for a specific good or
service, that service code may be utilized by any regional center if required to meet
consumer(s) needs. (Title 17, Section 54356)

Q. What is the importance of a vendor number or a service code?

A. The vendor number provides an identification number unique to each vendor. The
service code identifies the type(s) of service provided by that vendor. The vendor number
and service code are assigned for the purpose of identifying providers of a specific type(s) of service and allowing tracking of expenditures by vendor and/or service type.

Q. Are regional centers restricted to purchasing services from vendored service
providers only? Are there exceptions?

A. Yes. Regional centers are prohibited from referring any consumer to an applicant until the vendor application is approved and the regional center cannot reimburse a vendor for services provided before vendorization. However, if the regional center determines that the health
or safety of a consumer is in jeopardy, and no current vendor is available to provide the needed service, the regional center may approve emergency vendorization. (Title 17, CCR,
Sections 50612, 54324, 54326(c)(4))

Q. What is emergency vendorization?

A. Emergency vendorization allows a regional center to approve vendorization of an applicant prior to completion of the vendorization process if the regional center determines that the
health or safety of a consumer is in jeopardy and no current vendor is available to provide
the needed service. If emergency vendorization is approved, the applicant may provide
services for no more than 45 days, after which the emergency vendorization will lapse if the
regional center does not approve vendorization within 45 days of the initial authorization. If a lapse of emergency vendorization occurs, the vendor will not be allowed to reapply for
emergency vendorization. (Title 17, CCR, Section 54324)

Q. If I move my program within the same regional center catchment area, what
must I do?

A. You must notify the vendoring regional center, in writing, at least 30 days prior to the
change in location. The new site for community based programs must be licensed prior to
serving consumers, so any change in services must be figured into your timeframes. (Title
17, Section 54330)

Q. If I move my program into a new regional center catchment area, what must I do?

A. A new application must be filed with the regional center in whose catchment area you will be moving. You must contact the new regional center to begin the vendorization process.
(Title 17, Section 54330). Vendors must notify the vendoring regional center in writing at
least 30 days prior to the move.

Q. Can State employees or regional center employees be vendored to provide
services to regional center consumers?

A. Officers or employees of the State of California and regional center employees may not be vendored to provide services to consumers. (Title 17, Sections 54314, 54500 through 54525)

Q. If I open a new/additional location(s), do I have to submit a new vendor
application and request a new rate for the new program(s)?

A. Yes. Each location must be separately licensed and vendored and a separate rate must be established for the new/additional location(s). (Title 17, Section 54340 (a)(1)(A))

Q. May I contract out for some of my direct care services?

A. No, all contracts state no subcontracting.

Q. What appeal rights do I have?

A. A service provider may appeal 1) the denial of vendorization by a regional center, 2) a
non-compliance with regulation by regional centers, or 3) the setting of a rate by the
Department. There are also appeal provisions for audits. It is probably best to refer to
regulations for the specifics of each type of appeal. (Title 17, Sections: Vendorization appeals, 54380, 54382, 54384, 54386, 54388, 54390; Rate appeals, 57940, 57941, 57942, 57944,
57946, 57948; Audit appeals, 50730, 50731, 50732, 50750, 50751, 50752, 50753, 50754,

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