Indiana Requested Proposals for Disability Residential Facility

The state aims to address a service gap for adults with complex medical and behavioral needs following a facility closure.

Updated on Sept. 24, 2026 in Special Needs

Indiana Requested Proposals for Disability Residential Facility

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Should states prioritize funding home-based disability services over building new residential institutional facilities?

The Indiana Family and Social Services Administration has issued a request for proposals to operate a new residential facility for intellectually disabled adults. This initiative seeks to provide intermediate-level care in a secure, campus-style environment.

Why it matters

The state is working to address a critical service gap for individuals with high-risk needs that emerged following the 2024 closure of a co-ed residential facility. Officials intend to restore capacity for essential treatment services that are currently underserving adults in the state.

The proposed residential site will offer between 10 and 20 beds for adults requiring intermediate-level behavioral or medical care. The state has established a daily per diem rate of $703 for the selected provider.

The players

Indiana Family and Social Services Administration

This state agency oversees the delivery of human services and medical assistance programs for Indiana residents.

The details

The facility requires a secure, campus-style campus with dedicated outdoor and recreational space for residents. This expansion is designed to standardize treatment options for those currently facing complex crises, particularly women who lost access to care when the previous co-ed facility closed.

A co-ed residential facility in Marion closed voluntarily in 2024.
The Indiana Family and Social Services Administration issued a request for proposals in 2026.

Culture Shift

The state's move to build new capacity follows its recent implementation of interRAI assessments for Medicaid disability waivers. This initiative highlights the broader challenge of balancing standardized state-run eligibility with the need for specialized residential treatment beds.

Families seeking specialized intermediate-level care may see improved access to residential options as the state works to restore capacity. The project specifically aims to address gaps for women and adults with high-risk behavioral or medical requirements.

The takeaway

The state is prioritizing the creation of a secure environment to support adults who require intensive intermediate-level residential care. Families should monitor state announcements for the selection of a provider to understand how the new facility will integrate with existing Medicaid waiver programs.