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A case study of the effects of privatization of child welfare on services for children and families: The Nebraska experience

Author

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  • Hubel, Grace S.
  • Schreier, Alayna
  • Hansen, David J.
  • Wilcox, Brian L.

Abstract

Privatization, or contracting with non-governmental agencies for provision of state or federally funded services, is a strategy that has gained recent attention from policymakers as a potential tool for successful child welfare reform. The Child Welfare Privatization Initiatives Project was created in 2007 as a joint effort between the United States Department of Health and Human Services and the Office of the Assistant Secretary for Planning and Evaluation. The framework identified by this project produced twelve key considerations for states moving towards a privatized system. This case study considers these twelve considerations in a description of the large-scale effort to privatize child welfare services in the state of Nebraska that began in 2008. Problems leading to a need for child welfare reform and possible factors that motivated policymakers to shift services from the public to the private sector are also described. While proponents of privatization appeared to expect rapid increased efficiency and cost-savings, this case study explores multiple reductions in quality and availability of services for children and families served by the child welfare system that occurred during the effort. Further, the cost of child welfare services in Nebraska increased by 27% and the private agencies invested over $21million of their own funds as they attempted to uphold contracts. Recommendations for practitioners and policymakers considering participating in efforts to privatize child welfare services in the future are made based on Nebraska's recent experience.

Suggested Citation

  • Hubel, Grace S. & Schreier, Alayna & Hansen, David J. & Wilcox, Brian L., 2013. "A case study of the effects of privatization of child welfare on services for children and families: The Nebraska experience," Children and Youth Services Review, Elsevier, vol. 35(12), pages 2049-2058.
    • Handle: RePEc:eee:cysrev:v:35:y:2013:i:12:p:2049-2058
    DOI: 10.1016/j.childyouth.2013.10.011
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    References listed on IDEAS

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    1. Unruh, Jennifer K. & Hodgkin, Dominic, 2004. "The role of contract design in privatization of child welfare services: the Kansas experience," Children and Youth Services Review, Elsevier, vol. 26(8), pages 771-783, August.
    2. McCullough, Charlotte & Schmitt, Barbara, 2000. "Managed care and privatization: Results of a national survey," Children and Youth Services Review, Elsevier, vol. 22(2), pages 117-130, February.
    3. repec:mpr:mprres:3109 is not listed on IDEAS
    4. Wulczyn, Fred W., 2000. "Federal fiscal reform in child welfare services," Children and Youth Services Review, Elsevier, vol. 22(2), pages 131-159, February.
    5. Flaherty, Chris & Collins-Camargo, Crystal & Lee, Elizabeth, 2008. "Privatization of child welfare services: Lessons learned from experienced states regarding site readiness assessment and planning," Children and Youth Services Review, Elsevier, vol. 30(7), pages 809-820, July.
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    Cited by:

    1. Huggins-Hoyt, Kimberly Y. & Briggs, Harold E. & Mowbray, Orion & Allen, Junior Lloyd, 2019. "Privatization, racial disproportionality and disparity in child welfare: Outcomes for foster children of color," Children and Youth Services Review, Elsevier, vol. 99(C), pages 125-131.
    2. Anthony Bald & Joseph J. Doyle Jr. & Max Gross & Brian A. Jacob, 2022. "Economics of Foster Care," Journal of Economic Perspectives, American Economic Association, vol. 36(2), pages 223-246, Spring.
    3. Wells, Rebecca & Jolles, Mónica Pérez & Chuang, Emmeline & McBeath, Bowen & Collins-Camargo, Crystal, 2014. "Trends in local public child welfare agencies 1999–2009," Children and Youth Services Review, Elsevier, vol. 38(C), pages 93-100.

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