System Transformation

TennCare Long-Term Services & Supports (LTSS) believes our system transformation efforts will drive a broader culture shift—one where older adults and people with disabilities can fully exercise their rights, hold valued roles, and enjoy a high quality of life. These initiatives are shaped by the diverse voices and perspectives of our stakeholder community.

HCBS Capacity Building Funding Opportunity

In July 2025, TennCare Long-Term Services & Supports (LTSS) launched an initiative to invest $50 million in its home and community-based service (HCBS) provider network over the next five years. Through this initiative, up to $10 million will be available each year to help providers build capacity to increase the number of individuals they can serve, enhance their ability to serve individuals with higher support needs, and/or improve the quality of services they provide.

The HCBS Capacity Building Funding Opportunity funds will be awarded through an annual application process that is open to HCBS providers serving older adults and individuals with physical, intellectual, and developmental disabilities in the CHOICES, Employment and Community First (ECF) CHOICES, 1915(c) HCBS Waivers, Katie Beckett, and OPTIONS programs. The HCBS Capacity Building Funding Opportunity encourages providers to consider both current and future service and quality needs and offers them the flexibility to develop strategies that meet the needs identified for their workforce and the individuals and communities they serve. In the initial funding cycle—beginning July 1, 2025 and ending June 30, 2026—providers were asked to focus their application proposals on activities and strategies intended to:

  • Reduce initiation delays for new services and gaps in current services for individuals receiving HCBS;
  • Expand the types of services offered and/or the geographical areas where they provide services;
  • Increase the capability and capacity of staff to support individuals with higher support needs;
  • Improve the quality and person-centeredness of services through staff training and development and refinement of organizational policies.

While the funding opportunity will continue to focus on these goals each year, future application cycles will require providers to include plans for strengthening data collection and analysis to determine the effectiveness of proposed initiatives, improving outcomes for individuals served, and ensuring long-term quality and sustainability.

The application period for Funding Year 1 (2025-2026) closed on September 30. 2025. It is expected that funding awards will be announced in the first quarter of 2026. Future application cycles will follow the approximate timeline outlined below:

  • June: Managed care organizations (MCOs) will conduct optional informational sessions for providers who are considering applying.
  • July: MCOs will conduct mandatory training sessions on provider application requirements. Providers must attend at least one of these sessions in order to submit an application.
  • August: MCOs will hold weekly office hours to provide technical assistance related to application requirements.
  • September: MCOs will release the Request for Application (RFA) to providers that participated in the mandatory training sessions. Providers will have 30 days to prepare and submit their proposals in accordance with the RFA requirements.
  • October – January: A joint panel of representatives from each MCO will review and score all applications and determine funding awards.
  • February: The MCOs will announce the providers that were awarded funding.

LTSS Workforce Development

TennCare continues to support workforce development efforts to address workforce challenges for direct support professionals (DSPs) in Tennessee. These workforce development programs and partnerships are supported through collaboration with multiple partners including the Department of Disability and Aging (DDA), Health Plan(s), advocacy agencies, and other state departments. Workforce Development is the foundation for our Pillars of System Transformation. Find out more information below.

TennCare supports provider organizations achievement of a more stable and highly trained workforce over time. Please checkout the following resources for providers and/or stakeholders.

The goal of TN’s Quality Improvement in Long Term Services and Supports (QuILTSS) Workforce Initiative and Statewide Strategy is to:

  • Support provider organizations to see a more stable and highly trained workforce overtime
  • Support the direct care workforce through high-quality competency-based training, progressive certifications, professionalization, and creating additional career development opportunities

To meet the goals, TN is focusing on

  • Continued Survey and Data Collection
  • Offering Competency Based Training and Wage Incentives
  • Supporting Organizations with recruitment and retention efforts
  • Evaluating Workforce Efforts

Consistent with CMS's value-based programs, one of TN’s strategies is to provide financial incentives for implementing evidence-based best practices in workforce recruitment and retention, as well as financial incentives for specific workforce and quality of life outcomes.

TennCare partnered with the University of Minnesota and the MCOs to conduct the annual statewide survey about the caregiver and direct support workforce in Tennessee. The survey is a key component of a comprehensive workforce strategy. Data gathered from the surveys are informing ongoing discussions and efforts to improve the recruitment, selection, and retention of high-quality employees to enhance home and community-based services in Tennessee. More information including the QUILTSS Survey results for each year can be found by visiting TennCare Workforce Initiative website.

  • TN Regional Workforce Development Community of Practices

To continue to support the ongoing development, implementation and evaluation of workforce strategies that improve workforce stability across the state of Tennessee at the organizational, regional and state levels.

  • Statewide Workforce Development Stakeholder Committee

From this committee, we are looking to glean insight into the current workforce development climate in Tennessee as well as increase the effectiveness and focus of strategies to address issues facing Tennessee provider agencies.

  • Provider Workforce Development Series

Providers are invited to join virtual quarterly workforce development workshops planned with providers in mind.

To learn more about any of these resources or be included in these meetings, please email LTSS.WorkforceDevelopment@tn.gov

TennCare supports the direct care workforce through high-quality competency-based training, progressive certifications, professionalization, and creating additional career development opportunities. This training is accessible through the following initiatives:

The Tennessee Direct Support Professional Training and Apprenticeship Program is a competency-based, 12-course program that provides training to enhance the skills of direct support professionals (DSPs). The program's goals include advancing health equity in medically underserved communities by expanding the number of DSPs in these areas, enhancing the skills of current DSPs, and increasing the workforce by offering practical on-the-job training apprenticeships.

The National Alliance for Direct Support Professionals (NADSP) has launched The NADSP E-Badge Academy, which offers Direct Support Professionals (DSPs) and Frontline Supervisors (FLSs) the ability to earn national certification through stackable electronic badges. These badges demonstrate the knowledge, skills, and values that direct care professionals in Tennessee utilize every day.

National Alliance for Direct Support Professionals (NADSP) Metrics and Incentives:

Metrics DSP Bonus and Training Time Provider Incentive

DSP – 1 Certification

(15 total NADSP E-Badges, which include 50 hours of accredited education)

$500 bonus

$500 training time

$250 per DSP - 1

DSP – 2 Certification

(30 total NADSP E-Badges, which includes 100 hours of accredited education (50 hours of which were previously earned as DSP-I)

$1000 bonus

$500 training time

$500 per DSP - 2

DSP – 3 Certification (50 total NADSP E-Badges)

$1500 bonus

$150 training time

$750 per DSP - 3

FLS Certification 2 total NADSP E-Badges, which include 25 hours of accredited education)

$750 bonus

N/A

Questions, suggestions, comments? Contact us at LTSS.WorkforceDevelopment@tn.gov

Direct Support Professional Career Pathway

Direct Support Professionals (DSPs) play a vital role in Tennessee’s workforce and economy by providing necessary supports and services to people with disabilities of all ages, including supports related to employment.

Entry level DSPs might begin their careers in the healthcare field. However, career opportunities abound.

Questions? Contact us at LTSS.WorkforceDevelopment@tn.gov

Behavioral Health Services

Expert: Executive Director, CEO, Psychiatrist/Psychologist, Licensed Clinical Social Worker

Advanced: Registered Behavioral Analyst, Addiction Specialist, Art/Music Therapist, Social Worker (BSN), Mental Health Counselor, Disability Counselor

Intermediate: Mental Health Technician, ABA Specialist, Registered Behavioral Technician, Peer Specialist

Home & Community Based Services

Expert: Executive Director/CEO, State/Regional Director, Program Director

Advanced: Program/Case Manager, Assistant Program Director, HR Coordinator, Life Skills Trainer

Intermediate: House Manager, Activities Coordinator, Field/Frontline Supervisor, Habilitation Specialist, Respite Care Provider, Enabling Tech Specialist

Education & Employment Services

Expert: Executive Director/CEO, Special Education Director, Childcare Director, Voc Rehab State Director

Advanced: Voc Rehab Program Manager, Career Counselor, Certified Employment Specialist, Job Developer, Special Education Teacher

Intermediate: Certified Work-Incentive Coordinator, Education Assistant, Teacher’s Aide, Childcare Assistant, Job Coach, Assistive Tech. Specialist

Healthcare Services

Expert: Executive Director/CEO Healthcare, Administrator/Medical Director, Director of Nursing Physician

Advanced: Speech Language Pathologist, Occupational Therapist, Physical Therapist, Physician Assistant, Medical Social Worker, Registered Nurse, Respiratory Therapist, Nutritionist/Dietician

Intermediate: LPN Phlebotomist, EMT/Paramedic, Certified Nursing Assistant, Dietary Aide, Medical Assistant, Pharmacy Technician, Patient Care Technician

Other Industries

Hospitality, Technology, Food Service, Law Enforcement, Government & Public Administration, Beauty, Wellness & Fitness, Human Resources, Human/Social Services, Financial Services, Entertainment, Nonprofit

Entry Level DSPs can begin careers as home health aides, personal care attendants & caregivers

The Healthy Careers Program is a partnership between BlueCare and East Tennessee State University designed to address staffing challenges in home-and community based services providers in Tennessee. Participants in the program receive employment connections as well as social and financial resources. To learn more, please contact LTSS.WorkforceDevelopment@tn.gov

Money Follows the Person (MFP)

Money Follows the Person (MFP) is a federally funded grant awarded to TennCare with the purpose of assisting the state to transition people from qualified institutions (i.e., ICF/IID) to home and community based care, and to also assist the state to rebalance their long term care expenditures.

  • Financial Support for Transition: MFP pays for a participant’s care in the community. It also pays for other expenses that come when a person moves into a more independent situation. Based on participant’s needs, they may be eligible to receive more help. MFP may help with home modifications, short term rent assistance and security deposits, along with one-time setup costs for a new apartment.
  • Care Coordination: An MFP participant’s care plan depends on their needs. The care management team will help assess each person’s needs. They will assess what level of care will provide a safe transition to the community. They will also look at how many hours need to be covered in any given day.
  • Transition Support: A Transition Coordinator will work with MFP participant’s and the care team to help find a place to live. They will also help find service providers such as nurses, physical therapists, or home health aides in the community.
  • To be eligible for Money Follows the Person an individual must:
    • Be enrolled in Medicaid
    • Be 18 years of age or older
    • Reside in a qualified institution (i.e. Intermediate Care Facilities for Individuals with Intellectual Disabilities, Regional Mental Health Institute, or Nursing Home) for sixty (60) days
    • Have care needs that can be adequately met in a community setting
    • Transition to the community in the CHOICES program, Employment and Community First (ECF) CHOICES program, or other waiver Home and Community Based Services (HCBS).

Money Follows the person (MFP) is a long-standing grant-funded demonstration designed with four goals:

  • Increase the use of HCBS rather than institutional LTSS under Medicaid;
  • Eliminate barriers or mechanisms that prevent or restrict the flexible use of Medicaid funds to enable Medicaid-eligible individuals to receive support for appropriate and necessary LTSS in the settings of their choice;
  • Increase the ability of state Medicaid programs to assure continued provision of HCBS to eligible individuals who choose to transition from an institutional to a community setting; and
  • Ensure that procedures are in place to provide quality assurance for eligible individuals receiving Medicaid HCBS and to provide for continuous quality improvement in such services.

Questions? Contact us at the LTSS Help Desk 1-877-224-0219

Money Follows the Person

The support you need to live where you want. You have a say in how and where you want to live.

Are you or a loved one currently living in an Intermediate Care Facility for Individuals with Intellectual Disabilities (ICF/IID)? Do you want a choice in how and where you live? Keep reading to find out how Tennessee’s Money Follows the Person (MFP) can help.

What is Money Follows the Person? Also called MFP, this is a demonstration funded by the federal government that helps Medicaid eligible individuals living in Intermediate Care Facilities (ICF/IID's) transition back into the community.

Who is eligible? You may be able to enroll in MFP if you are: Medicaid-eligible; in an ICF/IID, Nursing Facility, or other qualified institution for sixty (60) days; and transitioning to the community in the CHOICES, Employment and Community First (ECF) CHOICES, or other waiver Home and Community Based Services (HCBS). Keep in mind, additional eligibility criteria for other waiver HCBS will apply.

How does it work? MFP provides the funds based on your needs. Funds pay for services and support you need for a successful transition into the community. Housing options include your own home, individual apartments or Community Living Support (CLS) Homes. You and your care team will work together to develop a plan that's right for you.

What does MFP pay for? MFP pays for your care in the community. It also pays for other expenses related to a person moving into a more independent setting. You may be eligible to receive more help. MFP may help with home modifications, short term rental assistance and security deposits, along with one-time setup costs for a new apartment.

What kind of support and care can I expect? Your care plan depends on your needs. A care management team will assess what level of care will provide a safe transition to the community. Your Transition Coordinator will work with you and your care team to help find a place for you to live. They will also help find service providers such as nurses, physical therapists, or home health aides in your community.

How long does it take? Each timeline to transition is different. You and your coordinator will work together and they will advise you on what to expect.

Do I have a say? Yes! You are the most important person in this process. If you are happy with your living arrangement, you can choose to stay where you are. At each stage of the process, you have the choice of whether or not to continue.

How do I learn more? This FAQ gives a brief outline of the Money Follows the Person demonstration. To find out more, talk to your transition team. Or read more on this page under Money Follows the Person (MFP).

Questions? Call 1-877-224-0219

To access the Money Follows the Person (MFP) Member Videos, view them on the TennCare Videos page.

Aaron's Story

Growing up in the warm embrace of Memphis, Tennessee, Aaron, the youngest of six siblings, experienced the joys of childhood sports and video games. He attended the Kirby School in Special Education, overcoming early challenges to find happiness in his activities.

In his late teens, life took a challenging turn. His aggressive behavior resulted in Aaron’s hospitalization at the psychiatric unit of the Children’s Institute, diagnosed with Prader-Willi Syndrome (PWS) and cognitive deficits. Ultimately, Aaron moved to Prader-Willi Homes (PWH) at Hanson House in Wisconsin, where his diagnoses evolved to include Personality Change Secondary to Prader-Willi Syndrome, Intermittent Explosive Disorder, Conduct Disorder, and Mild Intellectual Developmental Disorder. Although he continued to experience aggressive episodes, these incidents gradually decreased.

A significant transition occurred for Aaron in 2023 when he moved to TrustPoint Hospital in Murfreesboro, TN. Aaron spent 10 months in the inpatient unit at TrustPoint. With support from BlueCare, Employment and Community First (ECF) CHOICES, the Money Follows the Person (MFP) program and his father, Aaron was able to return to living in the community with Reflection Care, marking a pivotal moment in his life.

Through Reflection Care’s Community Living Supports (CLS) program, Aaron has thrived. He has found his voice and confidence, and he is starting to advocate for his own needs and desires. He participates in the Special Olympics, enjoys walks with staff members, plays video games, and attends his day program, where he has made many friends. He walks at the gym every day and continues to be encouraged to get into shape for the Special Olympics, which will also lead to better health outcomes. He is even exploring employment opportunities, showcasing his growth and determination.

The staff at Reflection Care have worked tirelessly to create a safe and trusting environment, empowering Aaron to take charge of his life while ensuring his specific needs related to PWS are appropriately managed. Aaron’s behaviors are stable in this structured environment, where he is advancing his daily living skills and receiving support to maintain a healthy lifestyle.

One of Aaron’s most significant opportunities has been his involvement with The ARC Tennessee, using the LifeCourse Exploring Decision-Making Support tool available to Aaron as an MFP participant. This experience has taught Aaron the importance of making decisions for himself. With his team’s support, he now confidently communicates his goals and plans for the future, standing up for himself and others.

Aaron’s journey is a powerful lesson in resilience and the transformative power of compassionate support. His life has undergone remarkable changes, and he continues to inspire those around him with his courage and determination.

Tiffany's Story

In Tennessee, the "Money Follows the Person" (MFP) demonstration is designed to support individuals transitioning from institutional settings to community-based settings, emphasizing independence and quality of life. Below is one member’s story of how they utilized the MFP funding.

Following a four-month long hospital stay, Tiffany McCauley, age 24, found herself at a crossroads. She had limited family support and few community resources to rely on to help her. She faced the challenge of starting over without an income or adequate support for rent, household items, or food.

Using MFP funding, Tiffany was able to transition to a Community Living Support- Family Model (CLS-FM) residence. Although the transition to her new living situation was challenging, the MFP funding and resources provided the crucial support she needed. Tiffany received assistance with essential items for her new home, including food and hygiene products. This support was instrumental in helping her settle in and begin anew. The program’s support allowed Tiffany to focus on her personal goals and embrace her independence. Tiffany explains, “I now have access to what I need in my life, and I’m able to work on achieving the goals that are important to me.” Her advice to others considering a big transition like hers is to stay positive and recognize the value of the resources available. “It will help you restart your life and stay on track.”

Tiffany’s story showcases her courage and the profound impact of supportive care. Her growth and independence continue to inspire those around her.

Natasha's Story

In Tennessee, the "Money Follows the Person" (MFP) demonstration is designed to support individuals transitioning from institutional settings to community-based settings, emphasizing independence and quality of life. Below is one member’s story of how they utilized the MFP funding.

In 2023, Natasha experienced a mental health crisis while living in Employment and Community First (ECF) CHOICES Community Living Supports (CLS). This crisis resulted in her hospitalization, where she faced symptoms such as catatonia, lack of responsiveness, uncontrollable body movements, contractures in her ankles and feet, and psychosis. Over the ensuing months, Natasha was transferred among various hospitals and nursing facilities where her condition gradually improved. Recognizing the need for additional support, she and her family decided to explore the Family Model option within Community Living Supports, hoping to find an approach to meet her evolving needs.

Through Money Follows the Person (MFP), Natasha received essential items for her new home, including food, clothing, furniture, and hygiene products. She adapted quickly and is extremely fond of her new surroundings. Natasha has enjoyed outings to the lake, ballgames, and restaurants. With physical and occupational therapy, she gained greater independence, moving from relying on a Hoyer lift to transferring herself between chairs and her bed.

A recent milestone for Natasha was regaining the ability to wear shoes again, overcoming the drop foot caused by her earlier condition. Natasha also loves going to the salon and getting her hair done.

Since 2020, Natasha has made amazing strides in her health, mental well-being, and independence. Natasha’s journey is a reminder of the importance of community support. With the ongoing support of ECF and MFP, she is determined to achieve her goals of having her own apartment and returning to work!

Leslie's Story

In Tennessee, the "Money Follows the Person" (MFP) demonstration is designed to support individuals transitioning from institutional settings to community-based settings, emphasizing independence and quality of life. Below is one member’s story of how they utilized the MFP funding.

For over three decades, Leslie’s life was shaped by the confines of an Intermediate Care Facility (ICF), where she lived alongside eight other individuals. Since 1990, her nights were restless, often interrupted by the sounds of a roommate who yelled through the night, making a full night's sleep a distant dream. Despite the challenges of Cerebral Palsy, Leslie always dreamed of living on her own in an apartment, free from the presence of third-shift staff. Through funding from “Money Follows the Person”, Leslie was able to realize this dream and transition into the community and into her own home. On December 20, 2024, Leslie took a big step by moving from the ICF to a Community Living Services (CLS) home. This wasn’t just moving to a new place; it was a major step toward her goal of being independent.

Although Leslie requires staff assistance with daily activities like transferring, eating, toileting, and bathing due to contractures and limited muscle control, she has never been alone on her journey. She navigates life with a powerchair controlled by a joystick and communicates using a Tobi DynaVox with advanced eye-gaze technology. Leslie's mother has also been an unwavering advocate, fully supporting her daughter's journey to independence.

Recognizing how important technology was in Leslie's life, her team at Wellpoint worked with an Enabling Technology provider to set up essential supports in her apartment. They installed a tablet on her headboard so she could easily reach remote support when needed. A Smart Button was added for 911 emergency calls, and smoke and carbon monoxide detectors were placed to alert staff in case of an emergency. Sensors on doors and windows provided extra security, while a bed rail ensured Leslie's safety without interfering with her use of the technology.

Leslie is excited about the next chapter in her life and the opportunities ahead. She is eager to explore employment opportunities and becoming more engaged in her community. Leslie is also working to refine her skills with the Tobi DynaVox while sharing her experiences as a member of the Money Follows the Person advisory board.

Leslie's journey is a powerful beacon of hope for others in similar circumstances. Her life has undergone remarkable changes, and she continues to inspire those around her with courage and determination.

Value Based Purchasing

Value-Based Purchasing (VBP) is a strategic approach that ties payment systems to the quality and value of care provided. By shifting away from traditional fee-for-service models, VBP incentivizes healthcare providers to focus on delivering high-quality, efficient, and patient-centered care. This model rewards improved outcomes, better care coordination, and cost-effective practices, ultimately enhancing the overall quality of services for patients while promoting accountability and transparency in the healthcare system.

  • The TennCare QuILTSS Initiative (Quality Improvement in Long-Term Services and Supports) includes outcomes-based reimbursement for services such as Nursing Facility Care and Enhanced Respiratory Care provided in nursing facilities.
  • The Nursing Facility QuILTSS program is a voluntary program open to nursing facilities that provide services to TennCare Members. This program evaluates facilities based on clinical outcomes, satisfaction, member family satisfaction, alongside several other quality related measures.
  • The Enhanced Respiratory Care program permits participating nursing facilities to report the clinical measures of residents that require ventilator or tracheotomy management.

Enhanced Respiratory Care services in nursing facilities are reimbursed using a system that measures quality outcomes to adjust rates based on the facility’s performance on key performance indicators.

Are you thinking about providing Enhanced Respiratory Care (ERC) services in a nursing facility in Tennessee?

This information outlines TennCare reimbursement for these services that you may want to consider.

1. To be eligible for TennCare reimbursement of ERC services in a nursing facility, the facility must be:

a. Dual certified by the Centers for Medicare and Medicaid Services for the provision of Medicare Skilled Nursing Facility and Medicaid Nursing Facility services; and

b. Licensed by the Tennessee Board for Licensing Health Care Facilities

2. In addition to licensure requirements for all nursing facilities in Tennessee, there are specific licensure requirements that pertain to facilities providing ventilator care, see TennCare Rules 1200-08-06-.06(12).

3. These licensure requirements are applicable regardless of payer source (Medicare, Medicaid, etc.)

4. To be eligible for TennCare reimbursement of ERC services, there are additional standards—for ventilator care and for tracheal suctioning. These standards are available at: TennCare Rules 1200-13-01-.03(5).

5. Even if a facility is dual certified and licensed for the provision of ventilator care, it does not obligate a TennCare MCO to contract with such provider for ERC reimbursement.

6. If a facility does not have a contract with the TennCare MCO specifically for ERC reimbursement (not just Medicaid NF services), it will not be eligible for ERC reimbursement for any of the MCO’s members in that facility, even if the member has an approved Pre Admission Evaluation for such level of reimbursement.

7. A moratorium is in place on new TennCare contracts for ERC reimbursement except when an exception is requested by an MCO and granted by TennCare based on the MCO's demonstration of the need for additional capacity or improved quality in the geographic area in which the NF is located.

8. At a minimum, TennCare review of requests for exception to the moratorium will take into account:

a. The need for increased quality or capacity in the region to be served;

b. The organization’s experience in delivering ERC services – documentation of outcomes is recommended;

c. The organization’s CMS Five-Star quality rating and history of clinical and survey performance;

d. The organization’s timeline for becoming a fully functional Medicaid ERC facility, if approved – this includes construction, licensure, operational site, adequate staffing and equipment, etc., and

e. The results of a site visit by the MCO or its contracted ERC experts that will include an assessment of facility readiness and care quality.

9. ERC reimbursement is an add-on payment to the facility’s per diem rate. The amount of the add-on payment is based on the facility’s performance on quality outcome and technology measures. Facilities must demonstrate high quality in order to be eligible for higher levels of payment. These quality expectations must be understood and modeled by a potential vent care provider.

10. For a newly TennCare contracted ERC facility, at least six (6) months of quality outcome and technology performance data on all ERC patients must be submitted in order to determine the facility’s quality tier and the facility’s add-on payment for ERC reimbursement. This requires a minimum of six (6) months of quality performance data, regardless of payer source. Until the ERC payment amount can be established, the facility will be reimbursed at the facility’s established rate for Medicaid NF services.

11. To express an interest in becoming a TennCare ERC provider, please e-mail the ERC mailbox. We can provide MCO contacts so you can initiate discussions with them in order to discern TennCare contracting potential.

12. More information about TennCare’s Enhanced Respiratory Care Quality Improvement Initiative. Note that some of the information in that document has changed as the initiative has evolved.

  • If you have questions about the Nursing Facility QuILTSS program, please contact us at: QUI.LTSS@tn.gov
  • If you have questions about the Enhanced Respiratory Care Program, Please contact us at: ERC.LTSS@tn.gov