Texas Observer: State Stumbles Forward with Foster Care Privatization

As published by the Texas Observer on Sept. 9, 2014. 

Is the state agency charged with guarding Texas’ abused kids trying to privatize services needlessly?

The Department of Family and Protective Services continues to push forward on a plan to bring on more private companies—despite evidence that its effort to overhaul the state’s foster care system is faltering. Many advocates think recent turmoil with Providence Services Corporation, the first contractor tapped by the state to oversee a portion of the foster care system, suggests the experiment is already a failure. The next stage in “foster care redesign,” as the state calls it, is set to take effect this month when another private company takes over a seven-county North Texas region including Fort Worth. Instead, critics argue the Legislature should invest more money in a state-run system and work out the issues without the involvement of private companies.

The need for reform in foster care is not in question. In the fiscal year spanning September 2012 to September 2013, 10 children died from abuse or neglect while under state care. In fiscal year 2014, three children died, including 6-year-old Jenetta Smith and her brother, 4-year-old Riley. Both children drowned in Lake Georgetown in July, under the care of a foster family monitored by Providence. Until August, when Providence abruptly pulled out of its five-year contract, the company was in charge of a rural 60-county region in West Texas that the state now must again oversee.

Foster care redesign was meant to eliminate the rise in child deaths and streamline foster care services provided by a multitude of sub-contractors. In 2011, the Texas Legislature passed a bill allowing DFPS to shift the administration of its more than 300 privately owned child placement agencies—responsible for recruiting and monitoring foster placements—to lead companies, like Providence. Each “lead” company manages a certain region of the state. The goal is to keep children closer to their siblings and home communities, and avoid bouncing them from one home to the next.

In June, the Texas Sunset Commission, which looks into the efficacy of state agencies, released an excoriating report on DFPS. The report noted that foster care redesign is a “risky endeavor” that has no long-term comprehensive plan. Redesign “presents inherent challenges and risks to DFPS and to the state,” the report warned. “If a contractor fails or pulls out of the contract, DFPS is then faced with the difficult task of assuming the contractor’s responsibilities temporarily while the agency procures a new contract.”

That’s exactly what happened with Providence. In August, the company ended its contract with the state, citing a lack of services in its assigned region, such as residential treatment centers and adequate transportation for children. Providence also had IT system issues and was $2 million over budget.

The state has reclaimed responsibility for keeping track of the 1,100 foster children already in the system as well as any incoming children removed from homes due to abuse and neglect. The department intends to continue providing some of the services Providence was implementing in its redesign effort, but has no plans yet to tap another contractor to take over the region. But if the state can handle what it hired a private agency to do in the first place, what’s the point of moving forward with privatization? Read the rest.