Caregivers of disabled left in dark under Kansas’ private healthcare system

Source: Andy Marso, Kansas City Star, November 12, 2017

… The Star found other caregivers who were asked to sign off on plans of care without knowing if they included cuts — one of several concerns about transparency that have arisen since the state became the first in the country to privatize its entire Medicaid program by establishing KanCare in 2013. KanCare has made the Medicaid system in Kansas less collaborative and more secretive for people with disabilities, a group of independent case managers from Johnson County said in an August interview with The Star. When the system was run by the state and a network of disability non-profits, the case managers said, the focus was on figuring out what services could help and how to find them. Now it’s about justifying the services they’re getting. …

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Kansas proposes Medicaid work requirement
Source: Jonathan Shorman, Kansas City Star, October 27, 2017

The next version of Kansas’ privatized Medicaid program will require about 12,000 adults to work, a stipulation no state’s program currently includes. State officials unveiled their proposal for KanCare 2.0 on Friday. The program serves more than 400,000 residents but right now has no work requirement. The federal government must approve the proposal before implementation, a process expected to take months. …

Federal health officials approve one-year extension previously denied to KanCare program
Source: Allison Kite, Topeka Capital-Journal, October 17, 2017

The federal government has granted a one-year extension of Kansas’ privatized Medicaid program after denying the request and citing deficiencies in the program earlier this year. Following an on-site visit a year ago, the Centers for Medicare and Medicaid Services in January denied Kansas’ request for an extension and cited several concerns about the way the state ran its Medicaid program, KanCare, including limited oversight and coordination it argued posed a risk to recipients. The Kansas Department for Health and Environment, which runs KanCare with the Kansas Department for Aging and Disability Services, took issue with the January findings. In a letter dated Friday, CMS approved the request to extend the program through next year, as long as the state follows a list of directives, including continued compliance with a corrective action plan it submitted following the denial. The letter says the state has to apply for its full five-year reapplication by the end of the year. …

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Secrecy inside child welfare system can kill: ‘God help the children of Kansas’

Source: Laura Bauer, Kansas City Star, November 12, 2017

… An agency charged with protecting kids instead focused on protecting itself. An agency where a former high-level DCF supervisor told The Star she was instructed not to document anything after a child’s death and to shred notes after meetings so attorneys and reporters couldn’t get them through open records requests. An agency where even lawmakers insist DCF officials are intentionally misleading them and providing information the Legislature can’t trust. In the end, Kansas children continue to die without a public review of what contact state social workers had with the families — whether they did enough and whether policies and procedures were followed. …

In a months-long investigation into the secrecy that permeates Kansas government and how it harms residents, The Star found a pervasive effort inside DCF to hide behind privacy laws and internal procedures to keep the public from knowing how it operates. Those practices are particularly acute in cases where children are seriously injured or killed by parents and guardians who were known to the agency. For the past year, DCF has refused to answer questions on topics ranging from open records and the death of specific children to runaways in foster care. During the course of The Star’s reporting on widespread problems within the agency, DCF Secretary Phyllis Gilmore announced her retirement effective Dec. 1. …

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For Kansas foster care task force, report of missing children latest concern
Source: Madeline Fox, Wyandotte Daily, October 12, 2017

The news that about 70 children are missing from the Kansas foster care system is the latest in a string of concerns for lawmakers and child welfare advocates. Concern for the safety of children, heavy caseloads for social workers and a lack of coordination in the system prompted lawmakers earlier this year to form the Child Welfare Task Force, which heard about the missing children during a meeting Tuesday in Topeka. The foster care system, overseen by the Kansas Department for Children and Families, was privatized 20 years ago after it failed court-ordered reviews. Care is now overseen by two contractors: St. Francis Community Services in western Kansas, and KVC Health Systems in eastern Kansas. …

More than 70 foster children missing in Kansas
Source: Jonathan Shorman and Hunter Woodall, Wichita Eagle, October 10, 2017
 
More than 70 foster children are missing in Kansas, the companies running the state’s foster care system said Tuesday.  Lawmakers were concerned that Kansas Department for Children and Families Secretary Phyllis Gilmore appeared unaware that three sisters have been missing from a northeast Kansas foster home since Aug. 26.  Sen. Laura Kelly, D-Topeka, told a child welfare task force meeting that when she raised the missing children with DCF on Tuesday, the agency knew nothing. … KVC Kansas, one of the foster care contractors, said it has 38 missing children. The other company, Saint Francis Community Services, said 36 are missing in its system.  Chad Anderson, chief clinical officer at KVC Kansas, one of the contractors, told a child welfare task force that the number of missing represented about 1 percent of the foster care population and is in line with the national average.  Still, he acknowledged the contractor could do a better job. …

Kansas Lawmakers Advancing Bill for Oversight of Foster Care
Source: Associated Press, May 12, 2017

 
Kansas lawmakers have advanced a bill that would increase their oversight of the state’s privatized foster care system and the contractors running it.  The House gave first-round approval to the measure Friday on a voice vote. Members planned to take another vote to determine whether the proposal goes to the Senate.  The bill would create an 18-member task force to collect data from the state Department for Children and Families on the foster care system and its contractors and to make recommendations for improvement. …

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Kansas House Committee Approves Foster Care Task Force
Source: Allison Kite, Associated Press, May 9, 2017
 
A House committee on Tuesday passed a bill that would allow Kansas lawmakers to more closely oversee the state’s privatized foster care system and the contractors that run it amid questions about how the state monitors the program.  The bill passed by the House Children and Seniors Committee would create an 18-member foster care task force to study the system.  The task force would collect data from the Kansas Department for Children and Families on the foster care system and its contractors and make recommendations for improvement. …

Audit finds problems in privatized foster care system, faults DCF for lax oversight
Source: Peter Hancock, Lawrence Journal World, April 28, 2017
 
The private nonprofit agencies that manage Kansas’ foster care system do not have the capacity in many parts of the state to handle the volume of cases they deal with, and the Kansas Department for Children and Families often does not conduct adequate oversight of those contractors.  Those are the findings of a Legislative Post Audit report on the foster care program that was delivered to lawmakers Friday.  However, auditors also said there would be enormous costs for the state if it decided to take back control and operation of the program itself. The report was the third and final part of a comprehensive audit that lawmakers ordered following two deaths in 2014 of children who were in the foster care system. …

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$300 Billion War Beneath the Street: Fighting to Replace America’s Water Pipes

Source: Hiroko Tabuchi, New York Times, November 10, 2017
 
America is facing a crisis over its crumbling water infrastructure, and fixing it will be a monumental and expensive task.  Two powerful industries, plastic and iron, are locked in a lobbying war over the estimated $300 billion that local governments will spend on water and sewer pipes over the next decade. … To more directly reach towns and counties across the country, the plastics industry is also leaning on the American City County Exchange, a new group that gives corporations extraordinary capacity to influence public policy at the city and county levels. The group operates under the auspices of the American Legislative Exchange Council, a wider effort funded by the petrochemicals billionaires Charles G. and David H. Koch that has drawn scrutiny for helping corporations and local politicians write legislation behind closed doors. …

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Why Water Privatization Is a Bad Idea for People and the Planet
Source: Adam Hudson, AlterNet, April 18, 2017

… As climate change increases global temperatures and causes odd weather patterns, multiple cities across the United States are experimenting with some form of water privatization.   In February 2015, Chris Christie, the Republican governor of New Jersey, signed a law green-lighting the privatization of municipal water systems. The bill, called the Water Infrastructure Protection Act (WIPA), allows municipalities to sell their water systems to private companies without a public referendum. … Wisconsin is another front for the battle over water privatization. A bill proposed by a Republican state legislator, at the behest of Pennsylvania-based water utility company Aqua America, would make it easier for private companies to buy Wisconsin’s municipal water systems. …. The record of water privatization efforts is far from rosy. A report by the Pacific Institute, an environment, development and security research organization, points out numerous problems with water privatization. … A June 2016 report by Corporate Accountability International found that water privatization, in the form of public-private partnerships (PPPs), not only fails to solve the problem of fixing public water systems to ensure safe and clean drinking water but actually exacerbates it. …

You Had Me At H2O: A look at who owns your water supply
Source: Beryl Lipton, MuckRock, February 14, 2017

… According to one estimate, municipalities may be spending an estimated $500 billion in capital improvements over the next decade. But between private water companies looking to consolidate their regional reach and activists that insist the federal government should be spending more to help towns keep their water treatment local, there willl need to be a lot of room to talk about how we handle this most precious resource, which the UN has recognized as a basic human right. Action will be most important on the local level, and the people will have to speak up for themselves. We want to help by offering to file your water-related records request this week. …

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MT Republicans plan to expand special session agenda

Source: Mike Dennison, KXLH, November 8, 2017
 
Legislative Republicans plan to expand next week’s special session agenda, to include more options to fill Montana’s $227 million budget hole, MTN News has learned – including $32 million from an account controlled by the owner of the private prison in Shelby. … GOP leaders are drafting a proposed expansion with nine new items, including: Using $32 million from a fund set up to help the state buy the privately run prison at Shelby. The owner of the prison – CoreCivic – controls the money, but has offered to give it to the state — if the state agrees to extend the company’s contract, for another 10 years.  …

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Corrections pledges to increase private prison oversight
Source: Associated Press, November 30, 2016

The Montana Department of Corrections has pledged to strengthen its oversight of a private prison in Shelby after auditors recently found weaknesses in the agency’s monitoring of guard staffing levels, health care services and food service. Department officials said checks have already been increased to ensure mandatory security staffing levels are being met, and they will build more comprehensive checks in the other areas. The Legislative Audit Division did not find any major violations at the Crossroads Correctional Center when auditors conducted surprise visits, analyzed prison data and spoke to former inmates. However, the auditors did report that the department’s on-site contractor assigned to monitor the prison’s health services does not verify that inmates receive timely access to medical care. The department also has not defined the level of review it expects from the contractor and conducts only limited reviews of health services data from the prison, the November report found. … But DOC director Mike Batista said in his written response that the department has already set up reviews of shift rosters, payroll logs, video reviews of staff and other checks as a result of past violations discovered in audits. Batista pledged to increase the review of shift rosters each month. The department also “will build a more comprehensive reporting and compliance check for medical access and timeliness requirements” for its health care monitoring contractor, Batista said. He added that the department’s dietician will review the prison’s menu annually. DOC spokeswoman Judy Beck said Wednesday she did not have further comment beyond Batista’s response to the audit.

Montana to explore purchasing private prison in Shelby
Source: Matt Volz, Associated Press, September 24, 2015

Montana lawmakers on Thursday began exploring whether to purchase a private prison in Shelby when the state’s 20-year contract with Corrections Corporation of America is up in 2019. The state has the option to either buy the Crossroads Correctional Center or extend CCA’s contract for another five to 10 years. … There are 83-full-time correctional officers at the prison, and one vacant position currently, he said. CCA pays more than $7 million in payroll, utilities and other fees, along with $475,000 in annual property taxes, he said.

Are Private Prisons Using Forced Labor?

Source: Josh Eidelson, Bloomberg Business Week, November 8, 2017 

On Nov. 15 the 10th Circuit Court of Appeals in Denver will hear arguments in a case that could change the future of the $5 billion private prison industry. Judges will decide whether a district court was correct in February when it certified a class action on behalf of around 60,000 current and former detainees who are suing Geo Group Inc., one of the largest U.S. private prison companies, for allegedly violating federal anti-trafficking laws by coercing them to work for free under threat of solitary confinement. The case was first filed in 2014 by a group of immigrants who had been detained at an Immigration and Customs Enforcement facility run by Geo in Aurora, Colo. Their key claim rests on the assertion that Geo violated the Trafficking Victims Protection Act, a law designed to stop human trafficking—a scourge many associate with sexual exploitation by gangs, not with government contractors’ treatment of detained immigrants. Their lawsuit argues that Geo violated the law’s prohibition on using threats to obtain labor. …

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How a Private Prison Company Used Detained Immigrants for Free Labor
Source: Madison Pauly, Mother Jones, April 3, 2017

… The GEO Group, the private prison company that operates Aurora, allegedly forced more than 50,000 immigrants like Ortiz to work without pay or for $1 a day since 2004, according to a lawsuit that nine detainees brought against the company in 2014. On February 27, a federal judge ruled that their case could proceed as a class action, breathing new life into a suit that exposes the extent to which the for-profit company relied on cheap or unpaid detainee labor to minimize costs at the Aurora facility. … GEO incarcerates more immigrants (and receives more public money to do so) than any other detention center operator, according to an analysis by the anti-detention group CIVIC. And its business detaining immigrants for ICE is only expected to grow “with this increased and expanded approach to border security,” CEO George Zoley said in a February earnings call. …

Thousands of ICE detainees claim they were forced into labor, a violation of anti-slavery laws
Source: Kristine Phillips, Washington Post, March 5, 2017

Tens of thousands of immigrants detained by U.S. Immigration and Customs Enforcement were forced to work for $1 day, or for nothing at all — a violation of federal anti-slavery laws — a lawsuit claims.  The lawsuit, filed in 2014 against one of the largest private prison companies in the country, reached class-action status this week after a federal judge’s ruling. That means the case could involve as many as 60,000 immigrants who have been detained.  It’s the first time a class-action lawsuit accusing a private U.S. prison company of forced labor has been allowed to move forward. … At the heart of the dispute is the Denver Contract Detention Facility, a 1,500-bed center in Aurora, Colo., owned and operated by GEO Group under a contract with ICE. The Florida-based corporation runs facilities to house immigrants who are awaiting their turn in court. … The lawsuit, filed against GEO Group on behalf of nine immigrants, initially sought more than $5 million in damages. Attorneys expect the damages to grow substantially given the case’s new class-action status. … The original nine plaintiffs claim that detainees at the ICE facility are forced to work without pay — and that those who refuse to do so are threatened with solitary confinement. Specifically, the lawsuit claims, six detainees are selected at random every day and are forced to clean the facility’s housing units. The lawsuit claims that the practice violates the federal Trafficking Victims Protection Act, which prohibits modern-day slavery. … GEO Group also is accused of violating Colorado’s minimum wage laws by paying detainees $1 day instead of the state’s minimum wage of about $9 an hour. The company “unjustly enriched” itself through the cheap labor of detainees, the lawsuit says.

… The class-action ruling by Kane, a senior judge in the U.S. District Court in Colorado, came at a critical time, DiSalvo said, noting President Trump’s pledge to deport 2 million to 3 million undocumented immigrants. Advocates say private prison companies that have government contracts stand to benefit significantly from the president’s hard-line policy of detaining and deporting a massive number of immigrants. … Notably, the stocks of the two biggest private prison operators, Geo Group and CoreCivic (formerly known as Corrections Corporation of America), have surged since Trump’s election. The companies donated a total of $500,000 to Trump’s inaugural festivities, USA Today reported. Since Trump took office, his administration has reversed the Obama administration’s policy to end the country’s reliance on private prisons. … Under ICE’s Voluntary Work Program, detainees sign up to work and are paid $1 a day. … Jacqueline Stevens, who runs Northwestern University’s Deportation Research Clinic, said the program does not meet the criteria for what qualifies as volunteer work under labor laws. … Prison labor, Stevens added, has two purposes: to punish prisoners after they’ve been convicted of a crime and to rehabilitate them. Those don’t apply to immigrant detainees, she said. … In 2015, Kane, the federal judge, partially denied the motion to dismiss. Although he agreed with GEO Group that Colorado’s minimum wage law is inapplicable, he ruled that the other claims can stand. … Kane granted class-action status a few days after the Justice Department directed the Bureau of Prisons to, again, use private prisons, a significant shift from the Obama-era policy of significantly reducing — and ultimately ending — their use. …

Iowa Will Delay Plans to Add 3rd Company Back Into Medicaid

Source: Associated Press, November 7, 2017
 
An Iowa agency is delaying plans to add a third company back into the state’s privatized Medicaid program.  Iowa Department of Human Services Director Jerry Foxhoven says the agency will hire another company to offer Medicaid coverage in 2019. The agency originally said such a company would start next July.  Foxhoven says the agency will begin its search for a company soon, but the 2019 delay ensures adequate time.  Foxhoven provided the information Tuesday to a health care council. It comes one week after AmeriHealth Caritas announced it will drop Medicaid coverage in Iowa at the end of the month after failed contract negotiations with the state. Two other private insurance companies, Amerigroup and UnitedHealthcare, will continue Medicaid coverage. …

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DHS: Iowa Will Give $60M More to Companies for Medicaid
Source: Associated Press, November 2, 2017
 
An Iowa official says the state will spend an additional $60 million this budget year for private insurance companies to keep running the Medicaid program.  Iowa Department of Human Services spokesman Matt Highland said Thursday that additional costs announced this week as part of new state contracts with two companies will total $140.4 million. The state will pay $60.8 million of that. The federal government will pay about $80 million. …

Private insurance company to leave Iowa’s Medicaid program
Source: Barbara Rodriguez, Associated Press, October 31, 2017
 
An insurance company that helps run Iowa’s new privatized Medicaid program is withdrawing its participation after less than two years, state officials announced Tuesday, a move that highlights failed negotiations between the company and the state over future coverage expenses.  AmeriHealth Caritas will end its Medicaid coverage in Iowa at the end of November, the company confirmed in a press release. It offered no details on why a new contract with the state, through the Iowa Department of Human Services, could not be reached. DHS officials also declined specifics and focused attention to new contracts with the remaining companies, Amerigroup and UnitedHealthcare. …

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New York’s prevailing wage law: A cost-benefit analysis

Source: Russell Ormiston, Dale Belman, and Matt Hinkel, Economic Policy Institute, November 1, 2017

… State prevailing wage laws across the country have increasingly been assailed by those who appeal to lawmakers’ other responsibility—minimizing taxpayer costs—in an attempt to weaken or repeal these policies. These nationwide campaigns are built almost entirely upon a single argument: higher wages must equate to higher taxpayer costs. … And with a recent publication by the Empire Center (McMahon and Gardner 2017), it has become apparent that some in New York will attempt to pitch the same narrative to state lawmakers. There’s one problem. According to the most advanced economic research on state prevailing wage laws, the simple narrative largely isn’t true.

To separate fact from fiction as it relates to New York’s prevailing wage law, this report provides a thorough cost-benefit analysis of state policy relying extensively on independent, peer-reviewed research. As summarized in this report, academic economists from around the country have made prevailing wage laws a research priority over the last 15 years. In study after study, economists have found no evidence that these laws have had any significant cost effects on the biggest drivers of New York’s capital budget: highways and institutional buildings (e.g., schools). …

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Opinion: Maggots, food shortages and contraband — this week in Michigan prison scandals

Source: Nancy Kaffer, Detroit Free Press, November 6, 2017
 
Maggots in the prison food. Again.  You know, I’m starting to think that a state government can’t outsource a service for $11 million less than it paid for in-house work and expect to deliver a quality product.   In three separate recent incidents, inmates at the G. Robert Cotton Correctional Facility near Jackson, found moldy food, crunchy dirt in mashed potatoes, and maggots or other foreign substances in or near food, provided by outside contractor Trinity Services Group of Florida per incident reports obtained by a state worker through the Freedom of Information Act and reported in Monday’s Detroit Free Press. That’s on top of reported food shortages, inadequate staffing, unapproved substitutions, a change to the way the company gets paid (from number of prisoners eating to just the number of prisoners) and 176 Trinity workers barred from prison premises for transgressions like smuggling drugs, contraband or overfamiliarity with prisoners. …

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Michigan’s prison food contract: A motive to serve yucky meals?
Source: Paul Egan, Detroit Free Press, October 31, 2017
 
Michigan’s prison food contractor — already hit with millions of dollars in fines for performance issues and facing controversy over employees smuggling drugs and having sex with inmates — may now have a financial incentive to serve lousy food.  That’s because Florida-based Trinity Services Group merged last summer with another big out-of-state company that sells packaged food to Michigan prisoners who can afford to stay away from the chow hall and buy food to eat in their cells.  A few months after that merger, the state agreed to change its prison food contract and start paying Trinity based on the total number of prisoners incarcerated, instead of the number who show up for meals, which was the previous basis for payment.  That’s bad news for Michigan prisoners, because Florida-based Trinity Services Group no longer has an incentive — and in fact has a disincentive — to serve food that prisoners want to eat, critics say. …

Michigan prison food woes drag on
Source: Michael Gerstein, Detroit News, May 10, 2017
 
Food problems continue to plague Michigan prisons in 2017 after Gov. Rick Snyder replaced a previous private vendor over similar issues, state documents show.  Inmates at the Upper Peninsula Kinross Correctional Facility picked through “maggot infested potatoes” to find still-intact spuds for prison meals, according to documents the Lansing-based liberal advocacy group Progress Michigan obtained from the Michigan Department of Corrections through an open records request. … The report shows that the potatoes were discovered less than two months before a costly riot broke out amid prisoners’ complaints about food quality.  “We have had food issues or prisoner complaints at a variety of our prisons. Kinross doesn’t stand out to me as being particularly worse off than any other facilities that have food service there,” said Chris Gautz, a spokesman for the Department of Corrections. …

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Exclusive: Nursing Home Sought Help From Lobbyist Friend Of Governor

Source: Jim Defede, CBS Miami, November 3, 2017

State officials intended to permanently shut down the now infamous The Rehabilitation Center at Hollywood Hills in 2014, when a lobbyist with deep ties to Governor Rick Scott interceded on behalf of the man who wanted to take it over, CBS4 News has learned. The role of one of the Governor’s friends lobbying state officials on behalf of Dr. Jack Michel so Michel could obtain the license for the Hollywood Hills nursing home has not been previously reported. The nursing home is now drawing intense scrutiny following the deaths of more than a dozen residents after its air conditioning system lost power during Hurricane Irma. … In 2014, Michel wanted to buy the nursing home, whose owner at the time, Karen Kallen-Zury, had just been convicted of Medicare fraud and was sentenced to 25 years in prison. … Political leaders have questioned whether Michel should have been granted a license given the fact that Michel and two former business partners paid $15.4 million to the federal government to settle fraud claims. …

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Hollywood nursing home should never have been licensed, state senator says
Source: Bob Norman, Local 10 News, October 26, 2017

The U.S. Justice Department hit Michel with civil Medicare fraud charges in 2004, alleging he received $70,000 each month in kickbacks to funnel nursing home patients into Larkin Community Hospital in South Miami for medically unnecessary procedures. … Michel eventually purchased the Larkin hospital (beginning with what the feds alleged appeared to be sham transactions) and, according to the complaint, began paying to other doctors for more bogus Medicare referrals. … Farmer says the fraud described in the Michel complaint has become all too common. … Michel and his business partners — including Chicago Rabbi Morris Esformes and his son, Philip — paid $15.4 million to settle the fraud case while admitting no wrongdoing. Published reports show that the Esformeses have a long history of nursing home violations going back decades in Chicago and other cities, including one case in 2001 involving the deaths of four women during a heat wave in St. Louis. Criminal investigations netted no charges in that case, but the nursing home was hit with a $275,000 civil judgment in one suit while three others ended with undisclosed settlements. But after paying the $15.4 million settlement to the federal government, both Michel and the Esformeses simply continued in the business of running nursing homes and hospitals. …

Hurricane Irma: Hospital linked to nursing-home deaths was paid $48M to care for Florida prisoners
Source: Arek L Sarkissian, Naples Daily News, September 26, 2017

The owner of a Florida nursing home whose 11 residents died after Hurricane Irma has benefited for years from millions of dollars in government contracts despite repeatedly running afoul of state and federal regulators. Dr. Jack Michel, owner of Rehabilitation Center at Hollywood Hills, owns a Miami hospital that has received $48 million in taxpayer money since 2006 to treat state prisoners. The payments to Larkin Community Hospital started the same year Michel settled a federal fraud lawsuit that accused him of bilking taxpayers. They continued after the state barred one of his assisted-living homes from taking new patients. And state officials are giving no indication that the payments will stop now despite Florida Gov. Rick Scott’s comments that the owner is unfit to care for patients after deaths at his nursing home.

Larkin provides the prison hospital care under no-bid agreements that the Florida Department of Corrections approved, according to agency contract and finance records. The hospital has served as a subcontractor to the state’s prison health care vendors with approval from corrections officials. Eight elderly patients died Sept. 13 after Irma knocked out power at Michel’s nursing home and residents remained for several days without air conditioning. Three other patients died days later after being hospitalized with complications. …

Opinion: Puerto Rico suffers amid disaster capitalism

Source: Amy Goodman and Denis Moynihan, Press Connects, November 5, 2017

There are people coming to the island, though: the disaster capitalists. As eloquently articulated by journalist Naomi Klein in her book “The Shock Doctrine: The Rise of Disaster Capitalism,” disasters both natural and human-made are increasingly being exploited by for-profit corporations and so-called free-market ideologues to reshape vast swaths of impacted societies, undermining social-welfare systems, privatizing public utilities, busting unions and making obscene profits rebuilding. Post-hurricane Puerto Rico is shaping up to be a textbook case of the shock doctrine.

… Case in point is the $300 million, no-bid contract awarded to Whitefish Energy to rebuild the island’s power grid. … As we spoke, news broke that Gov. Rossello had called for the cancellation of the contract. Jaramillo demanded not only that, but also the firing of the head of PREPA, who signed the contract, and a full criminal investigation into all those responsible for it. Like Mayor Cruz, Jaramillo is working to incorporate solar power into the rebuilt power grid, without privatizing the grid in the process. In the meantime, Fortune 500 Fluor Corp. has also received a $200 million contract to work on the power grid. As Whitefish eventually heads back to Montana, there are two things you can be sure of: More disaster capitalists will be lining up to take its place, and the proud, resilient population of Puerto Rico, growing intolerant of the delays and the corruption, will be increasingly vigilant, while building momentum for renewable alternatives to the fossil-fuel power grid that has failed them.

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The Puerto Rico Power Scandal Expands
Source: Vann R. Newkirk II, The Atlantic, November 3, 2017
 
A second federal contract with a company hired to rebuild Puerto Rico’s all but collapsed power grid is coming under scrutiny, drawing the attention of federal investigators and even members of Congress even as most of the hurricane-ravaged island remains without power. The news of a second faulty contract is also raising questions about the contracting process for the island’s government-owned power company, the  Puerto Rican Electric Power Authority (PREPA).  Puerto Rico’s crumbling, aging electrical grid was at the heart of the island’s crippling debt and infrastructure problems even before Hurricanes Irma and Maria slammed into it over a month ago. But now, in the wake of recent scandals over contractors hired to fix that very grid, some experts expect the timeline for full recovery to last well into next year. …

FBI Is Probing Puerto Rico Power Contract
Source: Andrew Scurria, Wall Street Journal, October 30, 2017
 
The Federal Bureau of Investigation is investigating a decision by Puerto Rico’s power authority to award a $300 million contract to a tiny Montana energy firm to rebuild electrical infrastructure damaged in Hurricane Maria, according to people familiar with the matter.  Agents from the FBI’s San Juan field office are looking into circumstances surrounding the deal that the public power monopoly known as Prepa signed with Whitefish Energy Holdings LLC, according to the people familiar with the matter.  Puerto Rico Gov. Ricardo Rosselló canceled the contract Sunday, saying it had become a distraction from the U.S. territory’s efforts to restore the devastated grid. Only 30% of the island’s power customers have had electricity restored. …

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