HFS Social Health Care Network (SHCN) Program

HFS Social Health Care Network (SHCN) Program

HFS is implementing new provider types that will be delivered by non-profit community-based organizations (CBOs) that have limited infrastructure and capacity to contract and become Medicaid providers. These provider types include but are not limited to CBOs that provide health related social needs (HRSN) services under the 1115 waiver, community health worker (CHW) services, new maternal health services (e.g., doulas, lactation consultants), and reentry service organizations. To help prepare and develop the infrastructure needed to support these organizations in becoming Medicaid providers, HFS will fund a state-wide network system entity to build the network of providers that will deliver these services and provide training, technical assistance and capacity building funding. HFS will select one statewide organization through a competitive NOFO process to serve as the Social Health Care Network. HFS strongly encourages the use of subrecipients to ensure adequate reach across the state of Illinois.

Details

• Awarding Agency: Healthcare And Family Serv
• CSFA Number: 478-00-3997
• CSFA Popular Name: HFS Social Health Care Network (SHCN) Program
• Funding Opportunity Number: 3997-20-26-SHCN
• Announcement Type: Initial Announcement
• Award Type: Competitive
• Total Funding Available: $0.00
• Funding Sources: State
• Capital Grant: No
• Indirect Costs Allowed: Yes
• Posted Date: 2026-06-03
• Award Period: 2026-10-01 – 2027-06-30

Funding Restrictions

See Part C: Funding Information

Indirect Cost Description

In order to charge indirect costs to a grant, the applicant organization must have an annually negotiated indirect cost rate agreement (NICRA).

There are three types of NICRAs:
1. Federally Negotiated Rate. Organizations that receive direct federal funding, may have an indirect cost rate that was negotiated with the Federal Cognizant Agency. HFS will accept the federally negotiated rate. The organization must provide a copy of the federally NICRA.
2. State Negotiated Rate. The organization may negotiate an indirect cost rate with the State of Illinois if they do not have a Federally Negotiated Rate. If an organization has not previously established in indirect cost rate, an indirect cost rate proposal must be submitted through the GATA Grantee Portal no later than three months after receipt of a Notice of State Award (NOSA). If an organization previously established an indirect cost rate, the organization must annually submit a new indirect cost proposal through the GATA Grantee Portal within six months after the close of the grantee’s fiscal year.
3. De Minimis Rate. An organization that has never negotiated an indirect cost rate with the Federal Government or the State of Illinois is eligible to elect a de minimis rate of 15% of modified total direct cost (MTDC). Once established, the De Minimis Rate may be used indefinitely. The State of Illinois must verify the calculation of the MTDC annually in order to accept the De Minimis Rate.

All grantees must complete an indirect cost rate negotiation or elect the De Minimis Rate to claim indirect costs. Indirect costs claimed without a negotiated rate or a De Minimis Rate election on record in the GATA Grantee Portal indirect cost rate system may be subject to disallowance.

Grantees have discretion not to claim payment for indirect costs. Grantees that elect not to claim indirect costs cannot be reimbursed for indirect costs. The organization must record an election to “Waive Indirect Costs” into the GATA Grantee Portal.

State Award Notices

HFS anticipates announcing awards by September 1, 2026 through a Notice of State Award (NOSA) with grant period of performance being October 1, 2026, for an initial term through June 30, 2027 (9 months).

Administrative and National Policy Requirements

Grantees must comply with all legal requirements, State and Federal, related to procurement, environmental concerns, labor standards, and other requirements. Failure to comply with any legal requirement or other requirement specified in the grant agreement may result in suspension or termination of the grant agreement, grant funds being repaid by the Grantee, the withholding of future grant payments by HFS, or other remedy provided by law. In addition to the below requirements, Grantees must comply with all rules, regulations, and laws applicable to the grant program, as may be listed in this NOFO.

Business Enterprise Program (30 ILCS 575/0.01 et seq.): For grant awards of $250,000 or more, the grantee will be required to comply with the Business Enterprise for Minorities, Women, and Persons with Disabilities Act (30 ILCS 575/0.01 et seq.), which establishes a goal for contracting with businesses that have been certified as owned and controlled as a minority-owned business, woman-owned business or business owned by a person with a disability.

Reporting

Grantees must complete multiple reports during the term of the grant and potentially after the grant has ended. This will include, but is not limited to, financial and performance reports, closeout report, and labor hour reports. Grantee is subject to the audit rules and policies set forth by the Governor’s Office of Management and Budget as found in 30 ILCS 708/65(c) and 44 Ill. Admin. Code 7000.90. Deadlines for any required reports may be extended at the discretion of HFS and GCI. Extensions shall be issued only in extraordinary circumstances not in control of the grantee.

Grantee must complete periodic financial reporting at least quarterly using the State’s grant management system.

Grantee must complete quarterly reports on programmatic progress and how capacity building funds are distributed to CBOs.

More frequent or additional reporting may be required in the grant agreement based on the successful applicant’s risk assessments.

In addition to required reporting, grantees are subject to fiscal and programmatic monitoring visits by HFS in accordance with 2 CFR 200.336. Grantees must have an open-door policy allowing periodic visits by HFS monitors to evaluate the progress of the project and must provide documentation upon request. HFS staff will also maintain contact with the participants and will monitor progress and performance under the terms of the agreement(s). HFS may modify grants based on performance.

Grantees shall be subject to Illinois’ statewide Audit Report Review requirements. Terms of the Single Audit Act Amendments of 1996 (31 USC 7501-7507), Subpart F of 2 CFR Part 200, and the audit rules set forth under the Grant Accountability and Transparency Act shall apply. (See 30 ILCS 708/65).