KPTM FOX 42: Omaha News, Sports and Weather; kptm.com |KVC Calls It Quits on State Child Welfare Services

Jonathan Athens

OMAHA (KPTM) -- Nebraska's leading private sector provider of services to foster children and families in crisis is calling quits on its contract with the state.

The move has some worried that this could create more instability in Nebraska's already problem-plagued child welfare system. 

"We have a very solid transition plan, we have partnered very closely with the state because that it the last thing we want to happen," said Jodie Austin, KVC Vice President for Client Services.

The Kansas-based company announced Tuesday it will turn over the bulk of its services to the state Department of Health and Human Services as of March 1. Austin said KVC and DHHS could not come to terms on rate charges.

Child welfare advocates and some politicians say this is proof positive outsourcing child welfare services does not work.

"One thing that this privatization effort has shown us is how much is wrong with our system, how many vulnerable children and families have been let down and continue to be let down," said Sarah Forrest, policy director with Voices for Children.

KVC's decision comes five months after State Auditor Mike Foley blasted DHHS for it's handling of KVC and the department's other private contractor.

In his audit, Foley found DHHS had $25 million in contract changes with no accountability or documentation to back those changes up.

Lawmakers have grappled for the past several years how to fix the broken system. This legislative session, lawmakers have introduced 16 bills aimed at coming up with a fix.

KVC said it will continue to place children in foster care after March 1st.