Child Welfare System – Nebraska

Nebraska audit blasts child welfare services, By Grant Schulte (AP), September 7, 2011, Houston Chronicle: “Nebraska’s effort to privatize child welfare services increased costs by 27 percent in a two-year period and led to millions of dollars in overpayments to a provider that has since gone out of business, according to a state audit released Wednesday. Nebraska State Auditor Mike Foley told a legislative panel that the Department of Health and Human Services failed to publicly bid multi-million dollar contracts with private service providers, and spent thousands of dollars on duplicate claims and payments to the wrong contractors. The audit was part of a legislative review of the rising costs and instability within Nebraska’s child welfare system. The state began to privatize services in 2009, handing cases of neglected and abused children over to contractors. Three of the five providers have since dropped or lost their contracts as caseloads and costs grew unsustainable…”