INDIANA — State officials are taking steps to open a second short-term residential facility dedicated to stabilizing intellectually disabled adults who require temporary, around-the-clock clinical care.
The initiative follows the 2024 closure of a co-ed facility in Marion, which left a critical gap in Indiana’s support system for individuals experiencing severe behavioral, psychiatric, or medical crises—particularly women.
The Indiana Family and Social Services Administration (FSSA) recently issued a Request for Proposals (RFP) to secure a provider to operate a 10- to 20-bed Comprehensive Rehabilitative Management Needs Facility (CRMNF). The state currently funds a single CRMNF, but it serves only male residents, leaving no dedicated short-term residential crisis facility for women in Indiana.
Addressing a Gap in High-Level Care
According to state procurement documents, CRMNFs provide intensive, intermediate-level care designed to stabilize individuals with complex needs who cannot be safely supported in standard settings.
“These facilities play a critical role in ensuring that individuals experiencing acute or high-risk needs receive timely, structured, and clinically informed services that promote stabilization and prepare them for successful transition back to a less restrictive community setting,” the RFP states.
The state noted that adults eligible for admission “cannot be effectively served within traditional group home models or standard community-based settings,” adding that Indiana’s current system lacks the capacity to provide necessary active treatment.
Without a second facility, FSSA cautioned that individuals—particularly women—face extended stays in inappropriate environments, delays in stabilization, and heightened difficulties when attempting to transition back to community life.
FSSA plans to establish a secure campus-style environment featuring clinical support alongside access to outdoor, recreational, and educational spaces. An FSSA spokesperson confirmed that the current per diem rate for a licensed, Medicaid-certified CRMNF is $703.
Key Details: Proposed Residential Facility
| Feature | Details |
| Facility Type | Comprehensive Rehabilitative Management Needs Facility (CRMNF) |
| Capacity | 10 to 20 beds |
| Target Population | Intellectually disabled adults in acute crisis (co-ed) |
| Setting | Secure, campus-style layout with recreational and outdoor spaces |
| Daily Rate | $703 per diem (Medicaid certified) |
Disability Advocates Raise Institutionalization Concerns
While state officials frame the project as a necessary safety net, the RFP has drawn scrutiny from disability rights advocates.
The move comes as the state rolls out new interRAI functional assessment tools for Medicaid disability waivers—such as the Family Supports Waiver and the Community Integration and Habilitation Waiver. Advocates warn that higher rates of waiver denials or reduced individual funding allocations could inadvertently channel disabled Hoosiers into institutional care rather than home- and community-based support.
Advocates urged the state to prioritize investments in community-based services that keep individuals in their homes and neighborhoods.
Legal advocates are also seeking clarity from state leaders regarding the scope of the new facility.
The Arc of Indiana remains committed to ensuring that people with disabilities have access to the services and supports they need to live in their homes and communities.
Procurement reviews for the new facility are ongoing as FSSA evaluates incoming vendor proposals.
