DCF FL spawns "little gold mines" in privatization moves

It all depends who you know.

Subject: "Little gold mines" DCF FL privatization firm traded on NASDAQ
From: (Fern5827)
Date: 1/29/2004 4:11 PM Eastern Standard Time
Message-id:

Editorial

Wanna bet you'll see lots of upcoding, unbundling, and loads of unnecessary
services.

All in the service of making profits for investors.


Little gold mines
A Times Editorial
Published January 14, 2004

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In Tampa Bay and around the state, for-profit companies are nuzzling their way
in and assuming key duties in the state's increasingly privatized child welfare
system. The private sector's emerging prominence in this area no doubt delights
shareholders, but it's neither what lawmakers intended nor what Florida's
children deserve.

Providence Service Corp., a for-profit company based in Arizona and traded on
the Nasdaq, recently stepped in as manager for Family Continuity Programs, the
nonprofit agency that oversees child welfare duties, previously handled by the
state, in both Pinellas and Pasco counties. In time, Providence may take over
for FCP completely. This is the same outfit that manages the lead child welfare
agency in southwest Florida - and was instrumental in giving its for-profit
subsidiary near-complete control over services for abused kids in Collier,
Hendry and Glades counties.

We have nothing against this particular company. But child welfare is the last
place in Florida where entrepreneurs should be trying to make a buck. The
system was severely underfunded even before the current transition to
community-based care, and it remains so today. Every dollar "saved" - if there
is any - should be plowed back into services for children or families, not put
in the pockets of private shareholders who know or care little about protecting
Florida's kids.

"Child protection is a public responsibility. There is no room for profit
taking related to the protection of children," Ed Feaver, a former DCF
secretary, told the Times.

For-profit enterprising was not what lawmakers had in mind when in 1999 they
put Florida on the path toward a statewide system of community-based care.
Though the statute launching the transition does not expressly forbid
for-profit participation, it clearly anticipates that the community groups
taking over these duties would be "private nonprofit agencies." One can assume
that despite, or perhaps because of, its historical stinginess toward child
welfare, the Legislature was reluctant to invite investors to skim off the top.

Providence says it can offer those investors "an attractive return." But just
what is it willing to do - and whom is it willing to sacrifice - to make good
on that promise? If and when for-profits fail to make money, the obvious
temptation would be to satisfy stockholders by cutting losses and running,
notwithstanding the risks and disruption of services to troubled families and
children. In southwest Florida, advocates have already accused Providence's
for-profit subsidiary of seeking to boost its profit margin by unfairly
blocking Lutheran Services, an established and respected group, from competing
to provide the same Medicaid-funded services.

The ugly reality is that nonprofits have their ways of skimming off the top,
too, including by awarding executives obscenely large salaries. But the
solution for that is to choose nonprofits with good reputations and
demonstrated records. It is not to throw the door open to for-profits whose
ultimate allegiance is to investors, not children.

© Copyright 2003 St. Petersburg Times. All rights reserved


DESCRIPTORS; DEPARTMENT OF CHILDREN AND FAMILIES, DCF, FLORIDA, CPS, CHILD
ABUSE, PRIVATIZATION, FAMILY LAW, NON PROFIT ORGANIZATIONS, NO IMMUNITY, QUI
TAM LAWSUIT, LAWSUIT, WHISTLEBLOWER LAWSUITS, SOCIAL WORK, FL