Little gold mines Series

Little gold mines

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.
http://pqasb.pqarchiver.com/sptimes/...?ts=1075564947
Defend your civil liberties! Get information at http://www.aclu.org, become a member at http://www.aclu.org/join and get active at http://www.aclu.org/action.

Posted a couple of days ago.

Guess there is SOME PORK in THOSE DCF contracts, eh?

Or do they just do the old trick of bidding low, then crying that they can't
make it on the pitiful amount alloted.

Wex posted:

Subject: Little gold mines Series
From: wexwimpy
Date: 1/31/2004 11:04 AM Eastern Standard Time
Message-id:

Little gold mines

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.
http://pqasb.pqarchiver.com/sptimes/...?ts=1075564947
Defend your civil liberties! Get information at http://www.aclu.org, become
a member at http://www.aclu.org/join and get active at
http://www.aclu.org/action.