Performance-Based Agreements

Minnesota Vocational Rehabilitation Services purchases job placement and job retention services from qualified community rehabilitation providers through a performance-based agreement that emphasizes outcomes and results. We refer job placement and retention services to vendors with the outcome-based Job placement services attachment in their operating agreements. Referrals may be for supported or non-supported employment outcomes.

Payments are linked to client employment goals and employer satisfaction. Payment for services is provided when key milestones toward employment outcome are reached.

Payment Milestones

A signed Placement and Retention Plan is developed at a face-to-face meeting involving the consumer, the community rehabilitation provider and the Vocational Rehabilitation Services staff member. The plan identifies the job goal, defines the roles and responsibilities of each of the three parties, and creates a consensus about the desired outcome. The plan must be signed by all three parties.

Job hire is the first complete, paid shift worked by the consumer in the integrated labor market.

If the consumer loses his or her job prior to the completion of the PBA, the consumer is re-placed by the provider with no additional payment.

Milestone Rates

Each milestone will be pre-authorized by Vocational Rehabilitation Services staff and paid once per provider, per open PBA. Payment of a milestone will constitute payment in full for all services delivered during that phase of the program. A maximum of $3,800 will be paid per consumer in the following increments:

  • Signed Placement Plan: $1,000

  • Job Hire: $1,300

  • Successful Placement: $1,500

Contract Requirements

To vend services to Vocational Rehabilitation Services, service providers are required to enter into Operating Agreements. The services to be provided on a fee-for-service basis will be identified in Attachment 1: Services Provided, and the rates for these services will identified in Attachment 2: Fee Statement.

To vend placement and retention services, providers are required to accept the specific reporting requirements and statewide rates to be paid at future milestone events, as identified in Attachment 3: Performance Based Agreement (PBA) for Placement Services. Attachment 4 to the Community Rehabilitation Program Operating Agreement contains additional compliance requirements for CRPs and is labeled ADA Review. Attachment 4 to the Limited-Use Vendor Operating Agreement contains additional compliance requirements for LUVs and is labeled, Citations Related to 8.7 of "Other Provisions."

How to Become a Service Provider

If your organization would like to enter into an agreement with Vocational Rehabilitation Services to provide vocational services to Minnesotans with disabilities, the following steps will provide you with the information to get the job done:

If the business entity has not been accredited by the Commission on Accreditation of Rehabilitation Facilities (CARF), the first step to establishing an Operating Agreement is to talk with the Rehabilitation Area Manager responsible for the area in which you would like to provide services about becoming a Limited Use Vendor of the services proposed. Refer to the list of Rehabilitation Area Managers, or call 800.328.9095 and ask for the contact information of the Regional Area Manager in your area.

If the business entity is accredited by CARF to provide vocational services, the first step to establishing an Operating Agreement is to contact:

Anne Paulson
TTY 800-657-3973
FAX 651-297-5159
MN Relay 800-627-3529


These services are authorized on a fee-for-service basis, using rates determined by the vendor and identified in the Services Provided and Fee Statement attachments of the Operating Agreement.

Comprehensive Vocational Evaluation

Comprehensive vocational evaluation services provide an individualized, timely, and systematic process by which a person seeking employment, in partnership with an evaluator, learns to identify viable vocational options and develop employment goals and objectives. A vocational evaluator or vocational specialist provides or supervises the services. An accredited comprehensive vocational evaluation service is capable of examining a wide range of employment alternatives.

Employment Planning Services

Employment planning services are designed to assist a person seeking employment to learn about employment opportunities within the community and to make informed decisions. These services are individualized to assist a person in choosing employment outcomes and/or career development opportunities based on the preferences, strengths, abilities and needs of the person served.

Employee Development Services

Employee development services are individualized services that assist persons seeking employment to develop or re-establish skills, attitudes, personal characteristics, interpersonal skills, work behaviors, functional capacities, etc. to achieve positive employment outcomes. These services are time limited and can be provided directly to persons seeking employment or indirectly through corporate employment/employee support programs to achieve "placement readiness." In Minnesota, most of these services have been referred to as Work Adjustment Training, Job Seeking Skills, Special Needs Services, and Work Readiness.

Employment Skills Training Services

Employment skills training services are organized formal training services that assist a person seeking employment to acquired the skills necessary for specific jobs or families of jobs.

Training Materials

PBA Guide Booklet
Outlines the benefits to consumers and services providers.  Sets out the scope of job placement and retention services and the responsibilities of providers.

PBA Guide Full Page
Outlines the benefits to consumers and services providers. Sets out the scope of job placement and retention services and the responsibilities of providers.

PBA Presentation
Slides and notes providing an overview of performance based agreements.

Performance-Based Agreement FAQs

  • Can community rehabilitation providers be paid for interviewing potential consumers?

    Because community rehabilitation providers and consumers must agree that there is a "good fit" between them, a provider may wish to review referral information or interview a potential consumer. These activities are considered "intake" and are included in the PBA fee. The community rehabilitation provider is not committed to working with a consumer until the provider signs the job placement and job retention plan.


  • When can an existing PBA be ended and a new PBA started so the community rehabilitation provider can receive initial milestone payments again?

    If the placement and job retention plan is amended significantly (e.g., the employment goal or services change substantially, or there is a significant time when the consumer is unavailable for services) a new PBA can be started.


  • Can a community rehabilitation provider receive a PBA if the consumer gets hired through a different service, such as work evaluation or work adjustment training?

    PBA rates are intended to reimburse providers for the costs associated with developing a job with an employer. If a job offer results from another service, no placement plan should be signed and no job hire milestone should be paid. Job retention services can be paid on a fee-for-service basis through an operating agreement.


  • Who pays for necessary interpreter services?

    Interpreter services are included in the PBA fees, so the community rehabilitation provider should pay for the interpreting costs.


  • Can community rehabilitation providers be paid a fee for job seeking skills training?

    Many community rehabilitation providers offer a specific curriculum to assist consumers with job seeking skills training. Vocational Rehabilitation Services can purchase this training before the PBA is initiated.


  • What happens if the Vocational Rehabilitation Services case is closed and an event occurs that places the consumer’s job in jeopardy?

    The Vocational Rehabilitation Services counselor may authorize a limited amount of job coaching on a fee-for-service basis to resolve the issue. Counselors are expected to use their professional judgment to determine whether the use of limited post-employment services will resolve the issue, or if the Vocational Rehabilitation Services case needs to be re-opened and more comprehensive services provided.


  • Is there a limit to the number of hours of job coaching that are considered to be included in the PBA?

    No. Community rehabilitation providers must provide adequate job retention services, including job coaching, so the consumer is able to achieve a successful employment outcome.


  • Can Vocational Rehabilitation Services pay for additional services such as job try-outs or on-the-job training to assist the consumer with obtaining employment?

    Yes. Vocational Rehabilitation Services can provide financial assistance to employers for additional training that the consumer may require, beyond what other new employees typically receive. Vocational Rehabilitation Services can also provide financial assistance to offer a consumer the opportunity to try a job to see if it is consistent with his or her strengths, resources, priorities, concerns, abilities, capabilities, interests and informed choice. The community rehabilitation provider must contact Vocational Rehabilitation Services before making a commitment to the employer for these services. Prior authorization and an agreement form with the employer must be completed by Vocational Rehabilitation Services before the training or try-out can start. If the on-the-job training or job try-out results in the consumer being offered a permanent job by the employer, the community rehabilitation provider can be paid the milestones for job placement and job retention.


  • Can enclave, clustered, or scattered placements meet job hire requirements for a PBA

    No. PBA is to be used for single site jobs. If the community rehabilitation provider has a pre-existing relationship with an employer, and has placed and supported many persons with disabilities at the employer's place of business, this would not meet the expectations of the job hire milestone. Vocational Rehabilitation Services could authorize job retention services through fee-for-service under an operating agreement if the Vocational Rehabilitation Services counselor agrees that the placement is appropriate for the consumer.


  • Can a Vocational Rehabilitation Services file be closed and a job retention milestone be paid if the consumer is working in a temporary job?

    If the temporary placement is expected to last for an extended period of time, or is likely to turn into a permanent job, a successful closure can be taken. All of the other factors for successful closure must be met.


  • When can a Vocational Rehabilitation Services file be closed if more than one job has been involved?

    If there has been no significant break in the time that the consumer has been employed, and if the jobs are similar in nature, Vocational Rehabilitation Services can consider the time of employment to have been continuous. Careful consideration must be given to ensure that the final job is stable if it has been held less than 90 days.


  • Can a provider hire the consumer as their own employee and receive the PBA milestone payments?

    No. When a community rehabilitation provider becomes the interested employer, there is an implicit and explicit conflict of interest between the "service provider" role and the role as an "employer." The PBA service is intended to pay for the community rehabilitation provider's efforts in seeking and securing employment with another employer. f a community rehabilitation provider wishes to be the employer, they should relinquish the PBA role and not expect to be treated as both the employer and the service provider by Vocational Rehabilitation Services.


  • What is stabilization?

    In general, stabilization occurs when the consumer's work performance plateaus and the job coaching and related interventions have faded to the lowest level necessary to maintain the individual in employment. The transition to long-term supports should not occur unless all aspects of the consumer's placement indicate that the employment situation is secure.

    Stabilization should be based on the following factors:

    • The consumer has reached a maximum level of work performance.
    • The consumer has made substantial progress toward working the number of hours per week specified in the IPE. (If the consumer is stabilized in employment at a level of hourly work that is less than the goal established in the IPE, and the consumer and counselor agree, the IPE can be amended and the situation may be considered substantial and suitable employment.)
    • Job coaching and related support services have decreased to a level necessary to maintain the consumer in employment through ongoing supports.
    Another way of defining stabilization may be to look at the focus of service delivery or the focus of the consumer's employment support plan. At stabilization the emphasis for the consumer’s employment plan shifts from learning the job tasks and being oriented to their work environment to maintaining and advancing in employment. Once the consumer has demonstrated that he or she has learned the job tasks, job support efforts continue to ensure that the individual and the employer are satisfied with the job placement. By definition, once a new employee is able to complete his or her job with supports, he or she moves into the final phase of supported employment known as long-term supports.
  • What are long-term supports?

    These are variously known as ongoing supports, extended services or long-term supports and they are a critical element of supported employment. Extended support services support and maintain a consumer in supported employment after the consumer has made the transition from job development and job site training services. Ongoing job support services are those needed to promote job adjustment and retention. The type and intensity of support is designed for each individual consumer and typically evolves as the consumer's and employer's needs change.

    Extended support services address issues such as: a decrease in work productivity, assistance in training or retraining job tasks, dealing with schedule changes, adjusting to new supervisors, benefits monitoring and reporting, employee satisfaction, advancement to other job tasks or positions, and managing changes in non-work environments or life activities that affect work performance.

    A documented system should be in place to provide organized support contacts at regular intervals (at least two face-to-face contacts per month) with the consumers served. As appropriate with the permission of the consumer, contact at regular intervals is made with the employer. Job support services to retain employment are provided at times and locations suited to meet the needs and desires of the consumer served and the employer, if applicable.


  • Can a provider get paid the job hire milestone for a temporary job or when a consumer gets his/her own job that doesn't match the placement and retention plan job goal?

    Yes, but no retention services should be provided until the Vocational Rehabilitation Services counselor and consumer agree to amend the consumer’s Employment Plan. The PBA may be ended, or the placement may continue until a permanent or more suitable job is found. If the job is determined to be suitable by the consumer and the Vocational Rehabilitation Services counselor, retention services under the PBA could be initiated and the retention milestone paid.


  • What if multiple community rehabilitation providers are involved in providing job placement and job retention services to a consumer?

    Vocational Rehabilitation Services pays the milestone amounts to one primary provider. The primary provider can sub-contract with another qualified provider for service provision and payment.


  • Can Vocational Rehabilitation Services make payment to the provider when the provider is also billing Medical Assistance Home and Community Based Waivers (TBI, CADI, MR/RC) for supported employment?



  • Can additional fees for the transportation of consumers during job placement and job retention services be paid for through an Operating Agreement?