Oklahoma Department of Rehabilitation Services
 
Milestone Payment System

          

NEW!

An Analysis of the Milestone Contracting System 
by Dr. Peter Frumkin at Harvard's Kennedy School of Government
January 2001

Paying For Success
by 
Novak, Mank, Revell, and O'Brien

Milestone
Overview

Milestone Payment 
System Slide Show

VCU-SE Consortium Newsletter on
Results Based Funding Design

 Report Cards: Customer Choice and Quality Improvement

Downloads

Technical
Assistance

The Milestone system is a reimbursement method based on incentives and outcomes. Under the Milestone system, all of those who play a role in the service delivery process benefit. The consumers of the service gain, as they participate and receive the best in assistance, training and support. The service providers get compensated for achieving results and the entity that oversees and funds the process benefits because payment is based on outcomes, not billing-hours.

The Milestone system provides payments to the provider agency when the consumer passes predefined checkpoints (milestones) on the way to a desired outcome. It differs from fee-for-service funding, because it reimburses the provider for the average cost of achieving the outcome, rather than the cost of staff time spent on the process. This innovative system has the potential to cut government spending, increase service delivery and ultimately, generate more consumer satisfaction.

In the state of Oklahoma, the Milestone system was developed by the Community Rehabilitation Services Unit of the Oklahoma Department of Rehabilitation Services (DRS). The Oklahoma Milestone Payment System utilized by DRS was instrumental in putting people with disabilities into the work force.

Established as an independent state agency in July 1993, DRS provides assistance to Oklahomans with disabilities through vocational rehabilitation, education, employment, independent living programs and the determination of medical eligibility for disability benefits.

The DRS Milestone Payment System has received a $20,000 Ford Foundation grant for being selected as one of the 25 Finalists in the 1997 Innovations in American Government Program.  The Milestone System was selected from among 1540 Government innovations, the program is sponsored by the Ford Foundation in conjunction with the Harvard Kennedy School of Government and the Council on Excellence in Government.



  E-mail Contacts of DRS Support personnel  


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