Privatization success can be elusive
Nebraskans have reason to be leery of the plan to privatize all foster care and other services for children who are wards of the state.
The record in other states that have taken the same step is mixed. And Nebraska’s record of overseeing contracts is less than stellar, as shown by the recent problems found in the state’s oversight of contracts for transporting children.
Privatization has potential; it also has pitfalls.
Under the proposal, the Department of Health and Human Services expects to contract with a few large agencies or networks to provide services for out-of-home care.
The private agencies would provide foster homes and group homes and coordinate services.
State employees would continue to conduct initial assessments of children when they enter the system and would monitor them while they are in the system.
State officials plan to select contractors by Feb. 1, to sign contracts by March 15 and to implement the change by July 1.
Nebraska has about 6,600 wards of the state for reasons including parental abuse and misbehavior by children. About 4,300 of these wards live in foster homes, group homes, treatment programs, detention centers or other institutions.
Florida privatized many of its child welfare duties almost a decade ago. A state audit in 2006 showed that costs rose almost 83 percent per child over the first six years of the reform. The audit also found that children suffered abuse at a higher rate.
In Kansas, which privatized foster care, adoption and related services in 1996, there have been periodic wrenching changes. In its early years, several contractors lost millions of dollars. Lutheran Social Services ended up going out of business. United Methodist Youthville burned through a $16 million endowment and went bankrupt. In 2005, the Kansas Children’s Service League lost its $15 million contract to provide foster care, and about 200 employees lost their jobs.
In Texas, one private agency managed to win renewal of its contract to provide foster care even though it had been cited for more than 100 safety violations. The contractor last year voluntarily gave up its contract after two children died in its foster homes.
Obviously, privatization is no magic solution for saving money or strengthening the child welfare system.
It’s somewhat reassuring that Nebraska officials plan to retain the critically important functions of making initial assessments and monitoring. The key to making privatization work lies in the state’s ability to provide effective, timely oversight.
The record in other states that have taken the same step is mixed. And Nebraska’s record of overseeing contracts is less than stellar, as shown by the recent problems found in the state’s oversight of contracts for transporting children.
Privatization has potential; it also has pitfalls.
Under the proposal, the Department of Health and Human Services expects to contract with a few large agencies or networks to provide services for out-of-home care.
The private agencies would provide foster homes and group homes and coordinate services.
State employees would continue to conduct initial assessments of children when they enter the system and would monitor them while they are in the system.
State officials plan to select contractors by Feb. 1, to sign contracts by March 15 and to implement the change by July 1.
Nebraska has about 6,600 wards of the state for reasons including parental abuse and misbehavior by children. About 4,300 of these wards live in foster homes, group homes, treatment programs, detention centers or other institutions.
Florida privatized many of its child welfare duties almost a decade ago. A state audit in 2006 showed that costs rose almost 83 percent per child over the first six years of the reform. The audit also found that children suffered abuse at a higher rate.
In Kansas, which privatized foster care, adoption and related services in 1996, there have been periodic wrenching changes. In its early years, several contractors lost millions of dollars. Lutheran Social Services ended up going out of business. United Methodist Youthville burned through a $16 million endowment and went bankrupt. In 2005, the Kansas Children’s Service League lost its $15 million contract to provide foster care, and about 200 employees lost their jobs.
In Texas, one private agency managed to win renewal of its contract to provide foster care even though it had been cited for more than 100 safety violations. The contractor last year voluntarily gave up its contract after two children died in its foster homes.
Obviously, privatization is no magic solution for saving money or strengthening the child welfare system.
It’s somewhat reassuring that Nebraska officials plan to retain the critically important functions of making initial assessments and monitoring. The key to making privatization work lies in the state’s ability to provide effective, timely oversight.
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