Delaware - Day Habilitation Services — Licensing, Medicaid Enrollment and Startup Requirements

Last reviewed: 2026-09-09

The Delaware Division of Developmental Disabilities Services (DDDS) authorizes Day Habilitation Services under the Medicaid HCBS Lifespan Waiver. Providers must pass a multi-phase credentialing process that includes an interview with the DDDS Authorized Provider Committee and a formal Request for Proposals (RFP) submission through the Division of Management Services.

Delaware does not issue a distinct facility license for Day Habilitation centers, relying instead on DDDS Provider Standards certification and HCBS Settings Rule compliance. Applicants must secure Initial Authorization from DDDS before they are permitted to enroll in the Delaware Medical Assistance Portal (DMAP) operated by Gainwell Technologies.

1. Service Definition and Scope

Day Habilitation Services in Delaware provide structured daytime programming outside the individual's residence to build self-help, socialization, and adaptive skills. These services are funded primarily through the DDDS Lifespan Waiver.

The service must be delivered in a non-residential, community-based, or fixed-site facility that meets ADA accessibility standards and complies fully with the federal HCBS Settings Final Rule.

• Target Population: Individuals with intellectual and developmental disabilities enrolled in the Lifespan Waiver.
• Service Setting: Non-residential, community-based, or fixed-site facilities.
• Core Focus: Building self-help, socialization, and adaptive skills.
• Regulatory Standard: Must comply with the Community Settings Final Rule.
• Funding Authority: 1915(c) HCBS Lifespan Waiver.

2. Regulatory and Oversight Agencies

The Division of Developmental Disabilities Services (DDDS) serves as the primary operating agency and credentialing body for Day Habilitation providers. DDDS manages the Authorized Provider Committee and conducts the initial application review.

The Division of Medicaid and Medical Assistance (DMMA) oversees the broader Medicaid program, while Gainwell Technologies operates the provider enrollment portal.

• Operating Agency: Division of Developmental Disabilities Services (DDDS) at https://dhss.delaware.gov/ddds
• Medicaid Authority: Division of Medicaid and Medical Assistance (DMMA) at https://dhss.delaware.gov/dmma
• Enrollment Portal: Delaware Medical Assistance Portal (Gainwell) at https://medicaid.dhss.delaware.gov
• Procurement Office: Division of Management Services (DMS) at https://dhss.bonfirehub.com/portal/?tab=openOpportunities

3. Gatekeeping Prerequisites: Who Can Even Apply

Delaware accepts DDDS provider applications on an open and continuous basis, but applicants must successfully navigate the state's procurement system. Providers must respond to the open Request for Proposals (RFP) titled 'Home and Community Based Services for Individuals with Intellectual and Developmental Disabilities' through the Bonfire hub.

Before a service contract is issued, the Division of Management Services Procurement Office must accept the RFP bid, and the DDDS Authorized Provider Committee must grant Initial Authorization following a formal interview.

• Procurement Requirement: Must submit and win an RFP bid through the DMS Bonfire hub.
• Committee Approval: Must pass the DDDS Authorized Provider Committee interview.
• Application Format: Must submit a Requirements Summary Checklist in Word format with separate PDF documents for each question.
• Submission Method: Applications must be emailed as a ZIP file to [email protected].
• Reapplication Window: Denied applicants must wait six months from the date of the denial letter to reapply.

4. Licensure and Certification Requirements

Delaware does not issue a traditional facility license specifically for Day Habilitation. Instead, providers must meet the DDDS Provider Standards and obtain Qualified Provider Authorization.

Facilities must demonstrate full compliance with the HCBS Settings Final Rule during the credentialing process prior to enrollment, ensuring the setting is integrated into the greater community.

• Certification Standard: DDDS Provider Standards.
• Facility Requirement: Must secure a safe, accessible facility meeting ADA standards.
• Federal Compliance: Must pass HCBS Settings Rule credentialing prior to enrollment.
• Insurance Requirement: Must carry general liability and workers' compensation insurance.
• Corporate Reporting: Must promptly report any merger or corporate restructuring to DDDS.

5. Medicaid Provider Enrollment

After receiving the Qualified Provider Authorization Letter from DDDS, agencies must enroll as Delaware Medicaid providers. This is completed through the Delaware Medical Assistance Portal operated by Gainwell Technologies.

Providers must have their National Provider Identifier (NPI) and DDDS authorization letter ready before initiating the enrollment application on the portal.

• Enrollment System: Delaware Medical Assistance Portal (DMAP).
• Fiscal Agent: Gainwell Technologies.
• Required Identifier: Type 2 National Provider Identifier (NPI).
• Prerequisite Document: Qualified Provider Authorization Letter issued by DDDS.
• Support Contact: Gainwell call center at 1-800-999-3371.

6. Staffing, Training and Background Checks

Agencies must develop an infrastructure capable of providing direct support to individuals with intellectual and developmental disabilities. This includes utilizing the state's Electronic Training System.

Providers must attend the DDDS New Provider Orientation as part of the Phase 3 approval process before they can contract with the state.

• Orientation Requirement: Must attend the DDDS New Provider Orientation.
• Training Infrastructure: Must utilize the designated Electronic Training System.
• Staff Qualifications: Must meet baseline competencies outlined in the DDDS Provider Standards.
• Background Checks: Required for all direct support professionals per DHSS regulations.

7. Documentation, Policies and Records

Authorized providers must maintain comprehensive records and utilize state-mandated electronic systems for client data. Agencies must review and implement the Essential Elements to a Medicaid Compliance Plan.

Providers are required to use the Electronic Client Data Management System and maintain an Electronic Health Record as specified by DDDS.

• Compliance Plan: Must implement the Essential Elements to a Medicaid Compliance Plan.
• Data System: Must use the state-mandated Electronic Client Data Management System.
• Health Records: Must maintain an Electronic Health Record for all waiver participants.
• Incident Reporting: Must follow DDDS policies for critical incident documentation.

8. Billing, Rates and Claims

Once Medicaid enrollment and the RFP award are complete, providers must schedule an appointment with the DDDS Office of Business Supports and Services (OBSS). This meeting establishes the division contract and billing rates.

Providers must also register as a new Supplier with the State of Delaware through the eSupplier portal to receive payments.

• Contracting Entity: DDDS Office of Business Supports and Services (OBSS).
• Supplier Registration: Must register via the Delaware eSupplier portal.
• Rate Establishment: Billing rates are finalized during the OBSS contracting meeting.
• Claims System: Claims are submitted through the Gainwell DMAP system.

9. Approval Sequence and Timeline

The DDDS approval process is divided into four phases: Information Gathering, Application and Interview, Medicaid Enrollment and RFP Response, and Final Approval/Contracting.

If an authorized provider contracts with OBSS but does not begin providing the contracted service within 18 months from the contract date, DDDS will remove that service from the provider's contract.

• Phase 1: Information Gathering and review of the Provider Application Manual.
• Phase 2: Application submission and Authorized Provider Committee Interview.
• Phase 3: Gainwell Medicaid Enrollment and Bonfire RFP submission.
• Phase 4: OBSS Contracting and receipt of the Authorization to Accept Referrals letter.
• Activation Deadline: Must begin providing services within 18 months of contracting.

10. Common Denials and Survey Findings

The DDDS Authorized Provider Committee strictly enforces application completeness. The Division will not accept an incomplete application and will return it immediately to the submitting agency.

Providers often face delays if they fail to properly format their submission as a ZIP file with separate PDFs for each question, or if they fail to demonstrate HCBS Settings Rule compliance.

• Immediate Rejection: Incomplete applications are returned without review.
• Formatting Errors: Failure to submit separate PDFs inside a ZIP file causes delays.
• Settings Rule Violations: Inability to prove community integration blocks credentialing.
• RFP Exceptions: The State reserves the right to deny any exceptions taken to the RFP requirements.

11. Key Contacts and Resources

Prospective providers should direct application questions to the DDDS Provider Authorization Committee resource mailbox. For Medicaid portal issues, Gainwell Technologies operates a dedicated provider call center.

The DDDS Provider Application Manual is the primary resource document and is updated regularly on the DHSS website.

• DDDS Application Email: [email protected]
• Gainwell Provider Call Center: 1-800-999-3371 (8:00am - 4:30pm EST)
• DDDS Provider Page: https://dhss.delaware.gov/ddds/homepage/providers
• Bonfire Procurement Hub: https://dhss.bonfirehub.com/portal/?tab=openOpportunities

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