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Critics: HHS rushing on child plan

By Martha Stoddard
WORLD-HERALD BUREAU

LINCOLN — Nearly two years into privatizing Nebraska's child welfare system, state officials have begun work on a strategic plan for the effort.

Department of Health and Human Services officials say they expect to have the plan done before the end of the year.

But others, including a key state lawmaker, questioned the rush to develop a plan before a legislative probe is completed.

They also criticized the department's announced intention to do most of the work internally.

"They appear to be moving quite rapidly and, again, unilaterally," said State Sen. Kathy Campbell of Lincoln. "I would rather see a steady approach."

Campbell, as Health and Human Services Committee chairwoman, is leading the investigation of the rocky and controversial effort to privatize the job of ensuring the safety and well-being of the state's abused and neglected children.

The committee aims to have a report and recommendations finished in December.

That timing sets up the potential for conflict between the Legislature and HHS, if the department's plan and the legislative investigation call for taking the child welfare system in different directions.

Kerry Winterer, the department's CEO, has repeatedly said HHS will continue with the privatization initiative.

Some lawmakers already are calling for an end to the initiative, while others are considering that possibility or want to find a new course.

Vicki Maca, the HHS administrator overseeing the initiative called Families Matter, said the plan can be adjusted once the legislative report comes out.

"The timing of this has everything to do with 'We need a plan,'" she said. "It is really very important we have a clear vision of where it is we want to go."

HHS officials are under the gun to make improvements in child welfare privatization, especially after State Auditor Mike Foley released a scathing audit this month of the effort's financial side.

The audit, done as part of the legislative investigation, found that privatization has been plagued by escalating costs, lack of documentation, lost records and overpayments.

Gov. Dave Heineman said last week the system must be fixed. "I expect better results, and I expect them soon," he said.

Maca said consultants from the Casey Family Programs, who are working with state officials to improve the state's child welfare system, have been pushing the state to develop a plan for some time.

Work on the plan began a few weeks ago and is moving quickly, Winterer said.

"This changes every day. This is a very fast track we are on," he told an advisory group Friday.

Campbell, as well as some in the advisory group, expressed surprise and dismay that the effort is moving so quickly and that the department is not involving judges, attorneys, service providers, lawmakers, advocacy groups and others at an early stage.

"So many of these problems have been caused because we're moving at light speed," said Jim Blue, president and CEO of Cedars Youth Services of Lincoln. "I'd be happy not to hear 'light speed' and 'child welfare' in the same sentence."

Maca told the group the department will seek advice and input once the plan is roughed out. She said state officials need to lead on the planning because they know the federal requirements and priorities.

Maca said the strategic plan will cover the whole state, not just the two service areas where private contractors have taken over the bulk of the child welfare duties. It will identify priorities and list strategies for moving forward on those priority areas. It also will identify data to be used to measure progress.

She said she expects the strategies to differ for different areas of the state.

HHS undertook the child welfare changes in 2009 without a strategic plan. Since then, three of the five original contractors have lost or dropped their contracts because of financial and management problems.

The Kansas-based KVC handles one-third of the cases in Douglas and Sarpy Counties and all of the cases in the southeastern area, which includes Lincoln.

The Omaha-based Nebraska Families Collaborative now handles another third of the eastern area cases and will take over the remaining third in October.

In preparation for a legislative hearing last fall, officials created an action plan and a timeline for accomplishing it by 2012.

Contact the writer: 402-473-9583, martha.stoddard@owh.com


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