Category Archives: Social.Services

DCFS vows change to program that saw surge of child deaths

Source: David Jackson and Gary Marx, Chicago Tribune, October 25, 2017
 
Following a Tribune report on deaths of children in a privatized child welfare program, a state Department of Children and Family Services official said Tuesday that the agency has started taking back some of those cases from contract agencies and will handle them in-house.  Nora Harms-Pavelski, the agency’s deputy director of child protection, also disclosed at a legislative hearing Tuesday that agency administrators are now getting immediate reports on any instance of mistreatment of a child in the “intact family services” program, among other reforms. …

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Child deaths spike after DCFS privatizes ‘intact family services’
Source: David Jackson and Gary Marx, Chicago Tribune, October 23, 2017
 
The state Department of Children and Family Services had conducted two abuse investigations into Verna Tobicoe’s Southeast Side home in the months before her death in May 2015. The agency also had hired a nonprofit group to make frequent visits and conduct safety checks on Verna and two siblings. … And then 44-pound Verna became part of a growing pattern of similar fatalities: She was one of 15 Illinois children to die of abuse or neglect from 2012 through last year in homes receiving “intact family services” from organizations hired by DCFS, a Tribune investigation found.  There was only one such child death under the intact family services program during the previous five years from 2007 through 2011, according to DCFS records released to the Tribune under the Freedom of Information Act. … The spike in deaths began in 2012 after DCFS completely privatized the program, putting the care of families in the hands of nonprofit groups but doing little to evaluate the quality of their work, give them guidance and resources, or hold them accountable when children were hurt or put at risk, the Tribune found. …

Pay gap creating crisis in human services sector, agencies say

Source: Worcester Business Journal, October 11, 2017
 
Fourteen months after the signing of a law calling for equal pay across gender lines, representatives from human services agencies asked legislators for help closing a different sort of pay gap. Mark Schueppert, the general counsel and vice president of human resources for the Needham-based Justice Resource Institute, said some of his organization’s staff works in the same building as state employees who are doing similar jobs but earning more money, resulting in “literally dozens” of workers leaving for state jobs in the last three years. … Schueppert asked the committee to back a bill filed by Rep. Kay Khan, its House chair, and Sen. Linda Dorcena Forry that aims to eliminate the pay disparity between state workers and their counterparts at private, community-based human services nonprofits. ….

Numerous violations cited at Sacramento foster care shelter campus

Source: Karen de Sá, Cynthia Dizikes, and Joaquin Palomino, San Francisco Chronicle, September 17, 2017

A Sacramento agency running one of the few remaining foster care shelters in California has violated health and safety laws and the personal rights of children more than 120 times in recent years — a number matched only by state-licensed facilities that have been shut down or placed on probation. State citations since 2012 at the Children’s Receiving Home of Sacramento describe poorly trained staff, mishandled medications and filthy dorms. This year, an employee was terminated for an “inappropriate relationship” with an underage client and for smoking marijuana with runaway foster youth. On Sept. 8, a state inspector was unable to remain in a bedroom because the stench of urine overwhelmed her. The privately run facility has a troubled history of poor performance it has not yet overcome. Three years ago, state regulators placed the Receiving Home on an extensive 12-month correction plan, after its failure to make earlier, promised reforms. … A Chronicle investigation published this year revealed additional hazards for youth placed at the facility. The report documented hundreds of questionable arrests on shelter campuses following minor misbehavior by foster youth. …

Judge: IBM Owes Indiana $78M For Failed Welfare Automation

Source: Associated Press, August 7, 2017

A judge has ruled that IBM Corp. owes Indiana $78 million in damages stemming from the company’s failed effort to automate much of the state’s welfare services. … Indiana and IBM sued each other in 2010 after then-Gov. Mitch Daniels cancelled the company’s $1.3 billion contract to privatize and automate the processing of Indiana’s welfare applications following numerous complaints. The Indiana Supreme Court ruled last year that IBM breached its contract. The justices affirmed a lower court’s award of nearly $50 million to IBM in state fees, but that ruling allowed Indiana to seek more than $172 million in damages from IBM.

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IBM contests judge’s removal petition in welfare-privatization suit
Source: Dave Stafford, Indiana Lawyer, May 25, 2016

The state’s petition to remove a trial court judge who oversaw the civil lawsuit over the canceled $1.3 billion contract with IBM to overhaul Indiana’s welfare system is “factually incorrect,” according to an attorney representing IBM. Andrew Hull of Hoover Hull Turner LLP said in a statement that Marion Superior Judge David Dreyer did nothing to merit removal and didn’t violate Indiana Trial or Appellate Rules in an order issued on remand from the Indiana Supreme Court, as Barnes & Thornburg LLP lawyers representing the state argued in briefs filed Monday. Their petitions and brief seeking writs from the Supreme Court argue Dreyer overstepped his authority by issuing the order without proceedings, called into question his impartiality in the matter, and asked the court to vacate his order on remand and bar him from issuing further orders in the case.

Indiana Seeks New Judge After No Damages Awarded in IBM Case
Source: Rick Callahan, Associated Press, May 10, 2016

Attorneys for the state are challenging a judge’s decision not to award Indiana damages in its long-running fight with IBM Corp. over the company’s failed effort to privatize state welfare services, saying a new judge should be appointed to handle the case. The Indiana Supreme Court ruled in March that IBM had breached its $1.3 billion contract to automate much of Indiana’s welfare system. The high court directed the trial court judge to determine what damages IBM owed the state, opening the door for Indiana to seek up to $175 million. But on Friday, that judge, Marion County Superior Court Judge David Dreyer, ruled that “the costs for which the State seeks reimbursement were not adequately proven, and thus cannot be recovered as damages.” The state’s private attorneys in the case quickly filed a motion seeking a new judge to oversee the case. … The resulting lawsuits between Indiana and IBM were assigned to Dreyer, who found in 2012 that Indiana had failed to prove IBM breached its state contract and awarded the New York-based company about $50 million in state fees. Indiana appealed that ruling, and the state Court of Appeals found in February 2014 that IBM had committed a material breach of its contract by failing to deliver improvements to the state’s welfare system. But it also found IBM was entitled to nearly $50 million in state fees.

Mediation coming in IBM, Indiana contract dispute
Source: Associated Press, December 10, 2014

IBM Corp. and the state of Indiana are turning to mediation in hopes of settling their dispute over IBM’s failed attempt to privatize Indiana’s welfare services. The two parties said in a Monday court filing with the Indiana Supreme Court that they have agreed to mediation and chosen John R. Van Winkle of Indianapolis-based Van Winkle-Baten Dispute Resolution to hear their differences at a Feb. 25 mediation session. The state Supreme Court heard oral arguments in the welfare-privatization contract dispute on Oct. 30. The following week, Chief Justice Loretta Rush suggested that the parties consider mediation “to seek a mutually agreeable resolution of their dispute.” Rush’s order also said that if mediation failed, the court would move ahead to reach a decision in the long-running dispute.

Appeal of IBM-deal fees heard
Source: Niki Kelly, Journal Gazette, November 26, 2013

The fallout from the failed $1.3 billion IBM welfare modernization contract continued Monday as the Indiana Court of Appeals heard arguments over $100 million in disputed fees. … Attorney Peter Rusthoven, representing the state, said the system was plagued with problems from the outset and IBM refused to hire more people to add to the “human dimension.” …. But attorney Jay Lefkowitz, on behalf of IBM, pointed out that Indiana was trying to hire IBM to run the new hybrid system up until the day the company was terminated.

IBM, state in court Monday
Source: Tim Evans, Indianapolis Star, November 20, 2013

The Indiana Court of Appeals will hear oral arguments Monday in the legal battle over a $52 million judgment the state has been ordered to pay IBM over the failed attempt to privatize public welfare services under former Gov. Mitch Daniels. …. The state is appealing a Marion Superior Court judge’s 2012 ruling awarding $52 million to IBM after the state canceled a contract Daniels had hailed in 2006 as the solution for fixing one of the nation’s worst welfare systems. …. “Neither party deserves to win this case,” he wrote in his 65-page ruling. “This story represents a ‘perfect storm’ of misguided government policy and overzealous corporate ambition. Overall, both parties are to blame, and Indiana’s taxpayers are left as apparent losers.”

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Part of food stamp website offline for two weeks
Source: Tony Cook, Indianapolis Star, November 6, 2013

Earlier this year, state contractor RCR Technology wrongly released the private information of Indiana welfare recipients. Now, part of the state’s benefits website administered by the company is broken. …. The problems come just four months after revelations that RCR wrongly revealed private data of FSSA clients, including Social Security numbers. … RCR was initially an FSSA subcontractor, but was later elevated to prime contractor after Gov. Mitch Daniels fired IBM over a botched 10-year, $1.37 billion deal to overhaul the state’s welfare system, Gavin said.

Ind. court sets hearing on IBM welfare lawsuit
Source: Associated Press, September 3, 2013

The Indiana Court of Appeals has set a November hearing in the state’s legal fight with IBM Corp. over a failed attempt to overhaul Indiana’s welfare system. The state is appealing a Marion County judge’s ruling last year awarding $52 million to IBM after then-Gov. Mitch Daniels canceled what was a 10-year, $1.37 billion contract to process applications for food stamps, Medicaid and other programs….

The Unequal State of America: Indiana’s rocky road to welfare reform
Source: David Rohde and Kristina Cooke, Reuters, December 20, 2012

In 2006, Gov. Mitch Daniels privatized the management of the welfare-benefits system with a project led by IBM. Two-thirds of Indiana’s social-service agency’s staffers became employees of IBM and its partners. In a process dubbed “welfare modernization,” recipients would apply for benefits online and by phone rather than meeting social workers face to face. It was, by Daniels’s own admission, a failure…..

JEditorial: Human toll of FSSA deal laid bare
Source: Journal Gazette, July 24, 2012

Editorial: Decision to privatize state welfare system a mistake from start
Source: Evansville Courier & Press, July 22, 2012

Judge denies Indiana claim over failed IBM project
Source: Charles Wilson, Associated Press, July 18, 2012

A judge on Wednesday spurned Indiana’s efforts to recoup roughly $170 million from IBM Corp. over its failed effort to overhaul the state’s welfare system as part of a broader privatization push that was an early hallmark of Republican Gov. Mitch Daniels’ tenure. Marion County Judge David Dreyer said in a 75-page order that neither side deserved to win the dispute, and awarded IBM only a small fraction of what it was seeking. … Dreyer blamed “misguided government policy and overzealous corporate ambition” for the failure of the system, which he called an “untested theoretical experiment.” … Dreyer said Indiana failed to prove that IBM breached its contract, and he denied the state any of the money it sought.

IBM questions Daniels’ resistance to deposition
Source: Carrie Ritchie, IndyStar.com, December 19, 2011

In court, state and IBM spar over welfare system’s design
Source: Carrie Ritchie, Indianapolis Star, March 9, 2012

IBM to begin making case in welfare trial
Source: Indianapolis Star, March 21, 2012

IBM: Indiana canceled deal because of budget woes
Source: Associated Press, April 3, 2012

IBM, state in final arguments at welfare system trial
Source: Carrie Ritchie, Indianapolis Star, April 3, 2012

Judge orders Gov. Daniels be deposed in IBM lawsuits
Source: Carrie Ritchie, IndyStar.com, December 16, 2011

A judge has ordered Gov. Mitch Daniels to share his knowledge of a canceled $1 billion contract with IBM to help resolve a legal battle between the state and the company.

Attorneys for the state had said a law protects Daniels and other high-ranking state officials from testifying….

State works on emergency agreement for child welfare services in Omaha area

Source: JoAnne Young, Lincoln Journal Star, May 6, 2017

Health and Human Services Committee Chairman Merv Riepe announced to state senators last week that child welfare services in the Omaha and Sarpy County area could be in jeopardy. The state withdrew its intention to award a five-year, $70 million-a-year contract to Nebraska Families Collaborative on Thursday and rejected all bids after an opposing bidder filed a challenge to the bid award. The lack of a contract could lead to a gap in services for vulnerable children and families beginning in July, Riepe said. The department is attempting to negotiate a one-year emergency contract with Nebraska Families Collaborative, and then to restart the bidding process, he said. …

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Nebraska HHS official recommends extending child welfare contract for another year
Source: Martha Stoddard, Omaha World-Herald, March 18, 2015

A top state official is recommending that Nebraska continue contracting out management of Omaha-area child welfare cases for another year. In a letter to lawmakers, Tony Green, acting children and family services director for the Department of Health and Human Services, said a contract extension would allow time to choose the best course of action for the future. Green said he would start negotiating the extension on April 1, unless the Legislature’s Health and Human Services Committee objects….The state’s contract with the Nebraska Families Collaborative, an Omaha-based nonprofit, expires June 30. It was originally signed in 2009 and has been extended once already for one year. The contract this year is worth up to $59.5 million….

Nebraska privatization of child welfare hasn’t produced ‘any measurable benefit,’ new study finds
Source: Martha Stoddard, Omaha.com, February 6, 2015

Nebraska’s five-year experiment with privatizing child welfare has not produced “any measurable benefit” for the state, according to a study report released Thursday. The study compared results achieved by state child welfare workers and by the Nebraska Families Collaborative, the private agency that manages child welfare cases in the Omaha area. It found no cost savings and no significant difference — either positive or negative — in outcomes for children and families….. They offered three options — staying the course with the private contractor, returning all case management responsibilities to the state or revamping the roles of the state and the collaborative to achieve real reform. ….

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State Contractor Accused of Denying Overtime Pay to Thousands of Pennsylvania Home Care Workers

Source: Business Wire, May 12, 2017
 
A major state contractor has been accused of systematically failing to pay overtime wages to thousands of home care workers in Pennsylvania in a lawsuit filed Thursday in federal court. The suit alleges Public Partnerships, LLC, a subsidiary of the nationwide management consulting firm Public Consulting Group, knowingly refused to pay workers for overtime despite its active role in hiring employees, administering services and issuing paychecks, a violation of federal and state laws governing wages and labor conditions. The issues raised in the case mirror those at the forefront of ongoing litigation throughout the country on joint employers and their responsibilities to their workers. …

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Performance Audit: Department of Public Welfare’s Oversight of Financial Management Services providers
Source: Commonwealth of Pennsylvania, Department of the Auditor General, November 2013

From the press release:
Auditor General Eugene DePasquale today said an audit of a Department of Public Welfare shows long-term mismanagement of home care worker payroll providers caused undue financial and emotional strain on tens of thousands of people. Thousands of workers had paychecks delayed for up to four months. … Beginning in December 2008, DPW had agreements with 36 different providers for payroll services of home care workers across the state. However, from 2009 through 2012, auditors found that DPW did not adequately monitor these providers resulting in numerous instances of noncompliance with applicable state and federal laws, regulations, and financial services standards by some of the providers. … DPW issued a request for applications in January 2012, and in August 2012 selected the Boston, Mass.-based vendor, Public Partnerships Limited, to provide payroll service statewide. In the short time frame that DPW had to transition 20,000 care recipient files to Public Partnerships Limited, DPW ignored many red flags — including concerns expressed by the vendor — that the new vendor was not fully prepared to pay all direct care workers by the DPW-imposed Jan. 1, 2013 deadline. The audit also found significant flaws in the procurement process used to select Public Partnerships Limited. …
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Audit Summary

N.J. Lottery Sales Fall Short Following Privatization

Source: SNJ Today, April 18, 2017

Those hoping to win big in the New Jersey State lottery are spending less on their dreams.  State lottery sales are down for the third year since being privatized.  Lottery operations management firm Northstar New Jersey promised a return of more than $1.4 billion over 15 years when New Jersey Governor Chris Christie moved the games to privatization in 2013.  Since then, Northstar has missed its income projections and spent $20 million in allowance funds to cover financial shortfalls. …

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Privatizing lottery isn’t lucrative deal for New Jersey
Source: Michael Catalini, Associated Press, January 9, 2016

New Jersey might get $1 billion less out of its state lottery as part of an amended 15-year deal with the private company that runs part of it, according to an Associated Press analysis. The deal, unveiled by Gov. Chris Christie’s administration on New Year’s Eve, also reduces the amount the company must generate to avoid penalties. The revenue targets that Northstar New Jersey has to meet have been lowered by about $76 million per year over the contract, which was struck in 2013. The total revenue projection was decreased from nearly $16 billion to about $15 billion. … The underperformance — including a $5 million drop in revenue in 2015 — has raised questions from Democrats about the privatization strategy championed by Christie, a 2016 Republican presidential candidate who promoted lottery outsourcing as a way to shrink the government’s payroll and bring in more cash. The lottery brought in $960 million in fiscal year 2015, down from initial expectations of a little more than $1 billion.

New Jersey Having Second Thoughts After Privatizing Lottery
Source: John Reitmeyer, NBC Philadelphia, October 8, 2015
Two years after New Jersey turned over some state lottery functions to a private venture under a controversial long-term deal, lawmakers are questioning why revenues have not met expectations and whether the privatization contract is worth it. The Senate Legislative Oversight Committee announced yesterday that it will hold a hearing on October 19 to review New Jersey’s deal with Northstar New Jersey to address concerns raised in recent weeks about fees Northstar is collecting even as it has failed to meet net-revenue targets. An Assembly committee is also scheduling a hearing on the deal. … Gordon, the Senate committee chairman, said the hearing on October 19 will also review the broader privatization issue, and whether the state is up to the task of monitoring such large contracts. He cited problems the state has had with private companies handling some of the recovery efforts in the wake of Superstorm Sandy in 2012 as another reason to broaden the scope of the hearing.

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Governor agrees to direct-care worker raises

Source: Ben Gocker, Adirondack Daily Enterprise, March 30, 2017

Gov. Andrew Cuomo surpassed the state Legislature Tuesday in offering pay raises to people who work with those with disabilities. Cuomo’s $55 million goes beyond $45 million proposed by both the state Senate and Assembly. Cuomo had not included any increases for these workers in his initial state budget in January. The size of the increase will be worked out in ongoing budget negotiations between the two legislative chambers and the governor. The additional funds would help direct-support professionals who work for nonprofit organizations that contract with the state, such as the Adirondack Arc and Citizen Advocates, but not workers for state agencies such as the Office for People with Developmental Disabilities, who tend to have better pay and benefits. … #bFair2DirectCare, a statewide coalition of advocates for New Yorkers with developmental disabilities, their families and their direct care providers, has been fighting for better pay for these private-sector workers. … Most of the funding Adirondack Arc receives comes from Medicaid, and CEO Sadie Spada said consistent cuts to Medicaid affect her organization’s ability to pay workers what they deserve. …

Were foster child’s claims about Packers taken seriously?

Source: Peter Hall, Michelle Merlin and Nicole Radzievich, The Morning Call, March 18, 2017

…. The crying bothered Jessica Rotellini Law so much, she said, she told an employee at the agency that placed her, at age 16, in the Packers’ Allentown home with Grace, her toddler brother and a 13-year-old girl in 2006. Law said no one ever followed up with her, and that within days of reporting her concerns, she was sent to live with a family in Montgomery County. Sometime in the next year, the Packers adopted Grace and her brother.

In July, when Grace was 14, Sara Packer, 42, and her boyfriend, Jacob Sullivan, 44, tortured and killed the girl before dismembering her body and discarding it near a Luzerne County reservoir, police say. They are charged in her homicide.

Law found out about the horrific charges when a detective visited her last month, carrying a picture of Sara Packer. The concerns she said she voiced in 2006 should have raised red flags, social services experts say. Some wondered if Sara Packer’s connection to the social services system — sources have told The Morning Call that Packer started fostering children through The Impact Project when she also was a caseworker there — may have affected the process.

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More counties consider cutting ties with agency connected to Sara Packer
Source: Bo Koltnow, WFMZ-TV, March 8, 2017

Another county cut ties with an area foster care agency after allegations involving alleged abuse by Sara Packer. Lehigh County cut ties with the 26-year-old agency Tuesday. Northampton County did the same Monday. At least two more counties are reviewing contracts with the foster care placement service. On its website, Impact Project boasts about winning the Program of the Year award from Pennsylvania’s Juvenile Court Judges Commission. Now, the private foster care agency is coming under fire. The agency serves 400 kids per year in nine counties. Northampton County broke the news that Impact allegedly knew about former employee Sarah Packer’s alleged abusive behaviors between 1999 and 2002, and did nothing. Late last year, Packer and her boyfriend were charged in the rape, murder and dismemberment of Packer’s 14-year-old adopted daughter, Grace. .. The Statewide Adoption and Permanency Network which licensed the Impact Project calls the news of Packer’s time at the agency alarming, and says it is currently looking into Grace Packer’s history. The Pennsylvania Auditor General announced his office will be auditing the child protection system Tuesday. … Officials at Impact — the for-profit agency that placed Law, Grace and dozens of other foster children in the Packers’ home — would not address Law’s account. …

Pinecrest staffers face almost daily patient assaults in wake of cutbacks, officials say

Source: Mark Ballard, The Advocate, March 25, 2017
 
The state’s efforts to privatize and economize health care at the state’s remaining facility for the intellectually impaired have resulted in regular assaults on staff by patients, state officials have discovered.  Almost every day, sometimes several times a day, a mentally impaired resident at Pinecrest punches, bites or otherwise violently lashes out at the mostly middle-aged women who help the individuals dress, eat and function in the world. The sudden and dramatic increase in violent attacks is an unintended consequence of “real quick privatization,” says Louisiana Department of Health Deputy Secretary Michelle Alletto, whose responsibilities include the 95-year-old facility near Pineville. Looking to save money, the state slashed budgets, laid off personnel and in 2013 closed other public facilities, intending to send the bulk of the patients to small, privately-owned group homes in communities around the state where their needs could be addressed on a more individualized basis. Pinecrest Supports and Services Center got the rest. … Budget cuts in other state agencies limited programs that treated these individuals in the past.

… For the 12 months prior to Feb. 28, the staff filed 524 reports, required by workers compensation regulations, for incidents at the facility where three years ago virtually no violence took place. … Perry, an officer in the employees union, says worker’s comp forms are only the tip of the violence iceberg because no publicly available forms are filled out unless the “slap leaves a mark.”  Local 712 of the American Federation of State, County and Municipal Employees began collecting statements from its members that provide a little more detail. … Many of the statements collected by the union complained about how they are unprotected by police and, often, are removed from direct patient care. … But the staff has lost its patience, says James Ray, AFSCME field representative and a Methodist minister. “They always say be patient, it’s going to get better. But the state, as an employer, has a legal obligation to provide a safe workplace, which they are not doing,” he said.

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Health firms make privatization pitches
Source: Michelle Millhollon, Advocate, February 14, 2014

In an overheated Holiday Inn banquet room Thursday morning, business leaders made pitches for privatizing a $2 billion slice of the state’s health care business. United Healthcare, Amerigroup Louisiana, Louisiana Healthcare Connections and LifeShare Management Group are interested in managing the long-term care needs of 73,000 Medicaid-eligible people. The companies want to oversee the personal care, doctor’s visits, transportation, hospitalizations and other daily needs of people with disabilities, as well as those with age-related or adult-onset challenges.

DHH Wants More Medicaid Privatization, Stakeholders Hesitant
Source: Ashley Westerman, WRKF, November 5, 2013

The state Department of Health and Hospitals is taking preliminary steps to further privatize Medicaid in Louisiana. In August, DHH released a concept paper about reforms to long-term care for the developmentally disabled and low-income elderly.

In a nutshell, the department wants to bring in a private managed care organization – or MCO – to create a network of healthcare providers to serve those populations. Proponents of private MCOs claim they save money, cut down on fraud and improve the quality of care. The state Dept. of Health and Hospitals is looking to privatize the managed care for Medicaid patients with developmental disabilities and low-income elderly. Other stakeholders and advocates for the disabled and elderly throughout the state, for the most part, welcome reform but skepticism remains….

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