LINCOLN — State officials hope to reach agreement soon on getting long-overdue payments to some foster parents, therapists and other child welfare providers.
Kerry Winterer, CEO of the Nebraska Department of Health and Human Services, said letters outlining a potential agreement went out Thursday.
They were sent to providers who had subcontracted with Boys and Girls Home when that Sioux City-based organization held a contract to oversee child welfare services in the central, northern and western areas of Nebraska.
The state ended Boys and Girls Home's contract in October because of financial and management concerns, among which were delays in paying subcontractors.
Most subcontractors have remained unpaid since October. Winterer estimated the total owed is about $4 million.
Under the potential agreement, the subcontractors would get less than half what they are owed, he said.
State officials have withheld the final $1.4 million payment to Boys and Girls Home until they can be assured the subcontractors will be paid.
Winterer said the state must go through Boys and Girls Home on the agreement because the state does not have a direct contract with the local providers.
The back payments are the subject of lawsuits filed against Boys and Girls Home by three larger subcontractors.
Winterer spoke following a meeting with the Legislature's Health and Human Services Committee, which is investigating the rocky privatization of Nebraska's child welfare system.
The state in 2009 began to turn over to private contractors the bulk of duties for ensuring the safety and well-being of abused and neglected children.
Since then, costs have escalated, instability in the system has grown and benefits have been mixed at best. Three of the original five contractors have lost or dropped their contracts.
Contact the writer:
402-473-9583, martha.stoddard@owh.com
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