55 Pa. Code § 3170.23 – Purchase of service.

(a) Purchase of service funding may be by unit of service funding or by program funding.
(b) A written agreement complying with § 3170.93 (relating to contracts) shall be signed by the county and those providers to which clients are regularly referred or with which the public agency, the juvenile court, and juvenile probation office have a continuing relationship. This requirement shall apply to both unit of service and program-funded agencies.
(c) Unit of service funding is the reimbursement of providers based on a charge per service. This refers to service providers which are separately administered, and receive reimbursement by a contracted per diem or fee rate—funding based on a charge per service. Services which are not eligible for program funding may be purchased on a unit of service plan if they are included in the approved annual plan. The services may be contracted for in advance, to be paid for as used, or purchased as the occasion arises. The services shall meet the requirements set forth in § § 3170.81—3170.86 (relating to unit of service funding) in order to qualify for reimbursement.
(d) The county may fund the total eligible expenditures for a privately administered and staffed facility or agency—that is, program funded—however, the funding may be used only when all of the following conditions are met:
1. (1) The county provides documentation that the desired services are available from only one provider in the geographical area to be served.
2. (2) The cost of the service is reasonable and if it can be computed on a unit-of-service basis, the rate does not exceed those charged the general public, or actual cost.
3. (3) The amount of funding paid by the county are those allowable provider costs remaining after other sources of income to the provider have been applied to the program being funded.
(e) For the purpose of this chapter, program-funded agencies shall adhere to appropriate requirements set forth for county agencies as described in § 3170.41 (relating to generally), and the requirements in § § 3170.42(b)—3170.49 (relating to personnel expenses), 3170.51—3170.61 (relating to operating expenses), and 3170.71—3170.77 (relating to ownership).