In 2016, the Tennessee Department of Children’s Services introduced a performance-based contracting model that includes performance bands. Provider agencies are placed into one of three bands: high performance, mid-range (or average) performance, or lower performance. Providers are then paid based on their performance on specific metrics, resulting in a performance pay system with standardized outcomes, daily rates for contracts, metric definitions, and a measurement methodology. As part of this initiative, the agency distributes monthly performance reports to providers.
