Category Archives: Horror.Stories

Video: Deal of the Year 2017 – Small Issuer: City of Missoula, Mont.

Source: Bond Buyer, December 6, 2017

The city of Missoula, Montana waged a six-year legal battle to wrest control of its water system from a private company. The water system in the town of 70,000 was privately-owned by Mountain Water – a company that refused to make needed repairs to the system or sell it to the city. … Obtaining traditional financing with no disclosure from Mountain Water — and water assets nearly beyond repair — was unattainable given the risks. The city also had to provide payment before the court could rule it owned the water system. The solution: the direct sale to Barclays of nearly $140 million in A-rated bond anticipation notes. The financing plan uniquely provided the necessary mechanics to allow the city to purchase the water system. Prior to the acquisition, water bills were 17% higher than elsewhere in the state, but dropped to 49% below average after the deal.

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City Of Missoula Takes Ownership Of Mountain Water Company
Source: Beau Baker, MTPR, June 22, 2017

The city of Missoula has taken ownership of the water utility that serves its residents after a three-year court battle. The city bought Mountain Water Company for $84 million and paid another $6.8 million to developers who had a claim against the company. A separate bundle of transition costs, the bulk of which are attorneys’ fees, amounts to $7.5 million.
Mayor John Engen said city attorneys originally estimated the legal costs would be $400,000. Missoula won the right to buy the utility in an eminent domain case. It now joins all 128 cities and towns in Montana in controlling and owning its own water and distribution system. … Merriam says there are no immediate plans to change the rates. …

One for the history books: Missoula will buy its water system
Source: Sherry Devlin, Missoula Current, February 22, 2017

In an historic vote Monday night, the Missoula City Council unanimously approved the purchase of Mountain Water Co., forever ensuring the city’s “access to clean, affordable and reliable water.” … Throughout the recent effort, and decades of unsuccessful attempts by previous mayors and councils, the goal has been to place Missoula’s drinking water system into public ownership. … That now could happen by the end of March. With Monday’s vote, the local water system will be free from an increasingly distant and disaffected roster of corporate owners, most recently The Carlyle Group, a global investment fund, and the Canadian utility Algonquin Liberty. … Missoula’s water has always been in private ownership; all other Montana cities own their water system. … In fact, Bender said, Mountain Water Co.’s purchase by an international hedge fund – The Carlyle Group – imperiled every future generation.
The city’s purchase of its drinking water system will benefit those future generations the most, Bender said. …

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Inmates removed from OKC halfway house, contract ended

Source: Dale Denwalt, NewsOK, December 5, 2017

The Department of Corrections has abruptly ended a contract with Catalyst Behavioral Services after years of issues at a downtown Oklahoma City halfway house and the death of an inmate who walked away from the work-release residential site last month. … The Corrections Department paid Catalyst $32.50 per inmate, per day. Expenditures last budget year totaled more than $1.5 million and the average bed count was 126. The decision to move inmates from the Walker and NW 8 Street site comes after the death of an inmate who walked away from the site Nov. 11. Ardmore police found the remains of Justin Sullivan and a woman inside a burned vehicle 16 hours before Catalyst staff discovered he was missing, the Corrections Department said. … Catalyst reportedly did not keep an accurate head count and at one point, Allbaugh noted, staff did not have a master key to get into inmate rooms. Non-inmates were able to freely enter the facility without security’s knowledge. … In response, the Corrections Department posted its own security staff on site since Nov. 23. It has ongoing concerns with Catalyst Behavioral Services’ staff training, their experience and ability to conduct proper inmate counts, as well as contraband control and proper searches. … The state oversees nine other halfway houses that are maintained by contracts with private businesses, including another site in Enid operated by Catalyst Behavioral Services that was not affected by Monday’s shuffle. …

Tennessee Lawmakers Give Correction Department A Short Leash To Fix Troubled Private Prisons

Source: Julieta Martinelli, Nashville Public Radio, December 12, 2017
 
The Tennessee Department of Correction is getting another year to show improvement. Officials voted to reauthorize the state agency for 12 more months after a scathing audit last month highlighted severe staffing and safety concerns at several private prisons.  The state agency oversees more than 20,000 inmates. About one third of them are housed in facilities managed by CoreCivic, a private contractor formerly known as Corrections Corporation of America.  Inmates, family members and even former employees have publicly called out conditions inside prisons like Trousdale Turner Correctional Center in Hartsville. The allegations came shortly after it opened last year. …

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State Audit Reveals Serious Staffing Concerns In Tennessee’s Largest Private Prison
Source: Julieta Martinelli, Nashville Public Radio, November 14, 2017

A state audit of the Department of Correction released on Tuesday highlights a number of issues plaguing prisons in Tennessee. The biggest issue is a shortage of correctional officers, which could put inmates and other prison staff at risk. The CoreCivic-managed Trousdale Turner Correctional Center, northeast of Nashville, and Whiteville Correctional Facility, near Memphis, operated with fewer than approved correctional officers and did not follow staffing guidelines required by the state. At Trousdale, which is the state’s largest prison, the audit found critical posts were even left unstaffed on multiple occasions. …

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Dallas district takes steps to operate its own school buses

Source: Mike Kennedy, American School and University, December 4, 2017

As expected, the Dallas school district is moving forward on taking over its own bus operations. The Dallas Morning News reports that the school system plans to pick up the pieces — including 925 buses and over 1,100 employees — from the soon-to-be-shuttered Dallas County Schools bus agency. Running its own in-house busing operations was the district’s most viable option, says Scott Layne, the Dallas district’s deputy superintendent for operations. Voters decided in November to shut down Dallas County Schools after numerous failings, including financial mismanagement, unpaid traffic violations and a questionable business deal involving stop-arm cameras. … According to a district analysis, Dallas is the only one among the state’s six largest school districts to use a vendor for busing, and cost-per-rider rate in Dallas was the highest among the six districts. The size of the district, spanning 384 square miles and parts of 16 different cities, makes it too difficult to find a transportation contractor for 2018-19, Layne says. Any outside vendor could take years to get online, needing time to assemble a fleet of buses and hire staff. … Layne expects the district will hire many of bus agency’s existing staff, including bus drivers, dispatchers, mechanics and monitors. At this point, it’s unclear how many of the 925 buses allocated to the Dallas district are leased by the bus agency, and it is uncertain whether those leases would be considered as part of the debt that would be absorbed in the dissolution of the contractor. A penny tax rate levied on property in the county will stay in effect until all of the bus contractors’ debt is paid off. …

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Report on Embattled School Bus Agency: ‘Ignorance, Incompetence, Negligence and Criminal Conduct’
Source: Scott Friedman and Jack Douglas Jr., NBC 5, November 16, 2017

A critical analysis, withheld for months by the former administrators of the Dallas County Schools bus agency, has now been released to NBC 5 Investigates, suggesting crimes were committed in a deal that cost taxpayers millions of dollars. The author of the report, former FBI agent Dennis Brady, didn’t mince words, stating that “ignorance” … “incompetence” … “negligence,” and possibly “criminal conduct” contributed to the financial woes for the school bus agency. The internal report, written last spring, was commissioned by the former board members for Dallas County Schools, in an attempt to determine whether crimes were committed in dealings between DCS and Force Multiplier Solutions, the company hired to equip school buses with security cameras. … Denise Hickman, the agency’s executive director of business during the deal, raised concerns when paperwork showed Louisiana businessman Slater Swartwood Sr. profited from the deal. Swartwood is linked to Force Multiplier Solutions, a company Dallas County Schools worked with on the camera business venture that got the agency into financial trouble in 2012. The purchase agreement describes Swartwood as the agency’s broker. He earned a $750,000 fee and nearly $200,000 was paid by the agency. Swartwood told the TV station in an email that he worked as a consultant for the buyer and didn’t know Dallas County Schools paid a portion of the fee. Force Multiplier Solutions is also linked with more than $245,000 in campaign contributions to the agency’s board president, Larry Duncan. …

Judge to decide fate of Dallas school bus contract
Source: Bob Kalinowski, Citizens Voice, June 27, 2013

Luzerne County Judge Michael Vough has a big decision on his hands regarding a multimillion-dollar bus contract in the Dallas School District.

Depending how he rules, a company that held the contract for decades could be forced out of business or another could be stuck with $2.1 million worth of new buses purchased to fulfill its newly awarded contract.

The school’s longtime contract holder Dallas-based Emanuel Bus Lines has asked Vough to grant an injunction to terminate the school’s new contract with Pike County-based G. Davis Inc.

Kansas’s ravaged economy a cautionary tale as Trump plans huge tax cuts for rich

Source: Dominic Rushe, The Guardian, December 10, 2017
 
Is Donald Trump about to turn America into Kansas? It’s a question some worried people who live in the state are asking as the Republican party pushes through the biggest tax overhaul in a generation – an overhaul that, they claim, bears an uncanny resemblance to a tax plan that left their midwestern home in disarray. After a failed economic experiment meant to boost economic growth blew a hole in the Kansas budget as big as a prairie sky (a $350m deficit in the current fiscal year and nearly $600m in the next) state jobs and services have been slashed.

… Sarah LaFrenz Falk, president of the Kansas Organization of State Employees ,who recently spoke to Congress about her fears about the Republican tax plan, said she sees an agenda in the Brownback plan – one that is mirrored in Trump’s plan: give huge tax breaks to super-rich donors [the rightwing, union-bashing Koch brothers are Kansas’s richest residents], then hand them a second win by cutting services, waiting for those services to buckle under the strain and then argue the private sector can do it better. … Kansas has already had one horrific example of private enterprise failure. In October lawmakers were “flabbergasted” to learn that the companies that now run Kansan foster homes had “lost” more than 70 children. Revelations about the unaccounted children came after it was revealed children had been left to sleep in local contractors’ offices because there were no places for them. The state is currently looking to privatise its largest prison, at Lansing, near Kansas City. CoreCivic, the company overseeing construction of the new prison, is subject to lawsuits in six states and was accused by state officials of grossly under-staffing facilities in Tennessee. …

… The details of Trump’s tax plan are still being worked out, but it looks certain to pass, and the fixed positions are big corporate tax breaks and a massive reduction for pass-through entities. … The bill looks set to add $1tn to the national debt. Republicans are already discussing paying for the plan by cutting social security and gutting Medicare and Medicaid, the two federally funded health insurance schemes. But, worryingly for Trump, Brownback’s tax plan proved not just disastrous for the state but also for Brownback and his supporters. … Brownback’s plan led to electoral defeat for his supporters in 2016, and the election of moderate Republicans he had fought with to pass his plan. His political career is now in limbo. …

Report on immigration detention centers raises questions of ‘perverse financial incentive’

Source: Esther Yu Hsi Lee, ThinkProgress, November 30, 2017

An analysis of the nation’s 201 immigration detention facilities contracted through the U.S. Immigration and Customs Enforcement (ICE) agency is raising concerns about inadequate standards, contracting practices, and limited accountability. … A spreadsheet analysis by the nonprofits Detention Watch Network and the Center for Constitutional Rights found that an average of 35,929 people per day were detained in immigration detention centers nationwide during the 2017 fiscal year through July 10, a number that does not include family detention centers or women detained at Hutto, an all-women detention center in Texas. Of that total number, 73 percent (or 26,240 people) were held in facilities contracted to private prison operators, the documents show. The two major private prison operators are GEO Group and CoreCivic, which charge the federal government a per diem rate anywhere between $30 per bed to detain immigrants for a short-stay facility to $168.64 per day, according to Transactional Records Access Clearinghouse data from 2016.

… The experts said that the findings suggest an “irresponsible” ICE agency, which requested increased congressional funding this year in part on claims of a cost increase in detainees’ chronic health care needs, while at the same time, lowering levels of detention standards. Advocates previously alleged that lowered detention standards contributed to repeated violations of ICE’s own standards of care. That meant detainees routinely received unsanitary food and substandard health and mental care. … What’s more, the spreadsheet outlined 159 out of the 201 detention centers that do not have a contract expiration date, drawing attention to the process of renewing a contract that would require facilities to undergo reviews that address chronic problems at facilities. Already, 12 immigrant detainees have died after being held in immigrant detention facilities during the 2017 fiscal year. … Findings from the spreadsheet also suggest detention facilities are increasingly cropping up in localities that have a “perverse financial incentive” to participate in two federal programs that solicit local law enforcement to detain immigrants. ….

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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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. …

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. …

Editorial: Improve foster care

Source: The Register-Guard, October 27, 2017

Oregon Democratic Sen. Ron Wyden and Utah Republican Sen. Orrin Hatch have teamed up in support of a bill to better protect children in foster care. This bill is both badly needed and long overdue. The Senate Finance committee launched an investigation in April 2015 into the increasing practice of states giving the responsibility for some of their most vulnerable children over to private, for-profit companies. … Governors in 33 states responded to the committee’s request for information about the consequences of privatizing foster care, as did one of the largest providers in the country, the MENTOR Network. The results of the two-year investigation were both unsettling and, sadly, unsurprising.

The Senate found there were flaws in data collection and oversight when it came to for-profit foster care, at both the state and federal levels. Procedures set up by states to monitor providers’ performance and outcomes weren’t followed. Children under the authority of the state who received services from private, for-profit agencies were abused, neglected and denied services. Profits were prioritized over children’s well-being. High staff turnover sometimes made it impossible to monitor how children were doing, and foster parents with questionable backgrounds were given licenses to care for children, who were inadequately monitored by the state. …

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Senate Finds 86 Children Died In Care Of Giant For-Profit Foster Care Firm, Citing BuzzFeed News
Source: Aram Roston and Jeremy Singer-Vine, Buzzfeed News, October 18, 2017

At least 86 children died in a 10-year period while in the custody of a giant for-profit foster care company, according to an investigation by the US Senate Committee on Finance. In only 13 of those deaths did the company, The Mentor Network, conduct an internal investigation, the committee found. The Senate committee said the company “falsely” claimed that its child death rate was in line with the fatality rates in the overall foster care system.

The Senate probe started in part because of a series by BuzzFeed News that profiled problems at the company, which was the largest for-profit foster care provider in the country. In one case a 2-year-old girl who was placed at a home run by Mentor was murdered by her foster mother. In another case, a series of boys were sexually abused by a Mentor foster father, whom Mentor paid as a foster parent for years despite a series of red flags. He had requested that he be sent boys who were “male, white, any age.” Though Mentor denied the claim, employees told BuzzFeed News that the pursuit of profits sometimes took priority over child welfare. (The company is owned by Civitas Solutions, Inc., which recorded $1.4 billion in revenue last year and trades on the New York Stock Exchange.)

… As a result of the committee’s investigation, the chairman, Orrin Hatch, and its ranking member, Ron Wyden, introduced legislation Monday to require states to disclose the contractors they use in privatized foster care, and to report to the federal government how those contractors perform. …

The Brief Life and Private Death of Alexandria Hill
Source: Brian Joseph, Mother Jones, February 26, 2015

When the government took her from her family, it outsourced her safety to a for-profit corporation. Nine months later she was dead…..

….What happened in Rockdale that night would be the subject of a weeklong trial in the fall of 2014, focusing on the care of Alexandria. But it also opened a window into the vast and opaque world of private foster care agencies—for-profit companies and nonprofit organizations that are increasingly taking on the role of monitoring the nation’s most vulnerable children. The agency involved in Small’s case was the Lone Star branch of the Mentor Network, a $1.2 billion company headquartered in Boston that specializes in finding caretakers, or “mentors,” for a range of populations, from adults with brain injuries to foster children. With 4,000 children in its care in 14 states, Mentor is one of the largest players in the business of private foster care, a fragmented industry of mostly local and regional providers that collect hundreds of millions in tax dollars annually while receiving little scrutiny from government authorities. Squeezed by high caseloads and tight budgets, state and local child welfare agencies are increasingly leaving the task of recruiting, screening, training, and monitoring foster parents to these private agencies. In many places, this arrangement has created a troubling reality in which the government can seize your children, but then outsource the duty of keeping them safe—and duck responsibility when something goes wrong…..

….Mentor and other private foster care agencies say they are committed to children’s well-being, and that nothing can prevent the occasional tragic incident. But in my investigation, I found evidence of widespread problems in the industry—failed monitoring, missed warning signs, and, in some cases, horrific abuse. In Los Angeles, a two-year-old girl was beaten to death by her foster mother, who was cleared by a private agency despite a criminal record and seven prior child abuse and neglect complaints filed against her. In Albuquerque, New Mexico, prosecutors alleged that foster parents screened by a private agency beat their foster son so badly that he suffered brain damage and went blind. (A grand jury refused to return an indictment in the case.) In Chattanooga, Tennessee, a foster father vetted by a private agency induced his 16-year-old foster daughter to have sex with him and a neighbor. In Riverview, Florida, a 10-year-old girl with autism drowned in a pond behind a foster home. The private agency that inspected the home had previously identified the pond as a safety hazard but had not required a fence. In Duluth, Minnesota, a private agency failed to discover that a foster mother’s adult son had moved back into her home. The son, who had a criminal record for burglary that would have disqualified him from being around foster children, went on to sexually abuse a 10-year-old foster girl. In Texas, at least nine children living in private agency homes died of abuse or neglect between 2011 and 2013…..