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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | September 26, 2024 11:41 AM |
|---|---|
| From: | Senator Judy Ward |
| To: | All Senate members |
| Subject: | Resolution directing the Legislative Budget and Finance Committee to study rate disparities in the Commonwealth’s child welfare and juvenile justice systems |
| I am introducing a resolution that directs the Legislative Budget and Finance Committee to study how private providers that work with the counties to provide child welfare and juvenile justice services are being affected by increasing costs and the rates they are paid. Private providers are struggling with increased costs – including the cost of liability insurance. Private providers do not receive the immunity from liability that government agencies receive, even though the private provider is managing services on behalf of a government entity. This is making it increasingly difficult for these providers to obtain insurance coverage at any price. There are also disparities between the rates that are permitted by the total appropriations to the state, federal and local agencies that provide these services, and the rates that are actually paid to private providers that have signed contracts with those government agencies. These factors have resulted in differences in compensation for private providers and their counterparts in government agencies, which, in turn, has made it increasingly difficult for these providers to attract and retain qualified workers. To help all parties gain a better understanding of these factors, the study will look at: *The difference in the financial participation levels that the Department of Human Services (DHS) sets for Title IV-E and Act 148 of 1976 placement services for children in substitute care, and the actual contracted rate between counties and private providers; *The private provider contracted rates compared to the national standard of inflation over the past five years; *The differences between rates for state facilities – Youth Development Centers and Youth Forestry Centers - and private provider contracted rates; *A list of cost drivers not considered in allocations, budgets or projections for the cost-of-care; *A salary comparison for comparable employees working for a private provider, a county agency and a state agency; *A comparison of fringe benefits offered to employees of private providers, versus the fringe benefits offered to employees of county and state agencies in similar positions. The study will compile data for every county in the Commonwealth, with a breakdown of the Commonwealth’s approved allowable rate and the contract rate paid by the county to private providers. The final product will feature recommendations on ways to address increased costs, including the cost of insurance. Please join me in sponsoring this resolution. |
Memo Updated: September 26, 2024 11:42 AM