Facts In Action

A number of recent studies examining the quality of child care in the United States have found that many facilities are, at best, of mediocre quality. This is a significant concern because research evidence has shown that the quality of care young children receive has both short- and long-term effects on children's cognitive and social development as well as later academic achievement. In an effort to improve the quality of care for young children, a number of states have instituted accreditation-linked differential reimbursement policies. That is, programs that become accredited by a professional accrediting body such as the National Association for the Education of Young Children (NAEYC) receive more reimbursement money per subsidized child than non-accredited programs. It is believed that such policies create an incentive for programs to become accredited by providing additional funding to support provider training and improved child/staff ratios.

The Foundation for Child Development has published the results of an informal study to determine the effect of differential reimbursement on programs seeking accreditation. Researchers examined ten states in which differential reimbursement policies had been initiated, collecting information on programs that subsequently applied for accreditation. Overall, differential reimbursement policies were found to increase accreditation applications, and that higher reimbursement rates increased the number of programs seeking accreditation. More specifically, researchers recommend that states set the differential reimbursement rate for subsidized care at least 15% above regular rates to achieve significant effects on the accreditation-seeking process and eventual improvement of program quality. However, in addition to financial incentives, the researchers recommend that state agencies and private foundations facilitate accreditation by creating programs to provide accreditation assistance and advice, to defray the cost of self-study and validation, and to assist staff through workshops and on-site counseling.

Source:
Money, Accreditation and Child Care Center Quality, W.T. Gormley, Jr. and J.K. Lucas, The Foundation for Child Development Working Paper Series, Georgetown Public Policy Institute, Georgetown University, August 2000.

For more information:
Write to Foundation for Child Development, 145 East 32^nd Street, New York, NY, 10010-6055, call (212) 213-8337, or go on-line at www.ffcd.org/ourwork.htm and click on "Publications". Editor's Note: this url is no longer active.

Facts in Action, June 2001