The Pitfalls of Privatizing Foster Care in Texas

The foster care system in Texas has long been under scrutiny. From reports of inadequate care to high caseworker turnover, the state-run system has faced numerous challenges. In an attempt to address these issues, Texas has moved towards privatizing its foster care system through a model known as Community-Based Care (CBC). While the goal is to improve outcomes by involving private organizations, this shift has revealed significant pitfalls. This article delves into the critical issues surrounding the privatization of foster care in Texas, highlighting both the promises and the perils.

A Shift Towards Privatization

The privatization model in Texas, known as Community-Based Care (CBC), decentralizes foster care services, transferring responsibilities to private, non-profit organizations across different regions. These organizations manage all aspects of foster care, including case management, placement services, and support for biological families. The underlying assumption is that these entities, driven by performance-based contracts, would bring innovation, accountability, and better outcomes for children.

The Goals of Community-Based Care

Community-Based Care aims to address several core goals, with performance measures tied to each:

1. Safety of children in placement.
2. Placement of children in each child’s home community.
3. Provision of services in the least restrictive environment.
4. Minimal placement changes for children.
5. Maintenance of contact between children and their families and other important persons.
6. Placement of children with siblings.
7. Provision of services that respect each child’s culture.
8. Preparation of children and youth in care for adulthood.
9. Provision of opportunities, experiences, and activities for children in care that are available to kids not in care.
10. Participation by children and youth in making decisions about their own lives.
11. Reunification of children with biological parents when possible.
12. Promotion of placement of children with a relative or kin if reunification is not possible.

Promises and Potential

Proponents of privatization argue that private agencies, unencumbered by bureaucratic inertia, can provide more responsive and flexible services. They cite several potential advantages:

1. Efficiency and Flexibility: Private organizations can adapt more quickly to changing needs and circumstances, potentially reducing delays in service provision.
2. Innovation: With the freedom to implement new practices and approaches, private agencies might introduce more effective models of care and support.
3. Accountability: Performance-based contracts are designed to hold private agencies accountable for outcomes, theoretically ensuring higher standards of care.
4. Resource Mobilization: Private organizations can tap into a broader range of resources, including philanthropic funding and community partnerships, to enhance their services.

The Reality: Pitfalls and Challenges

Despite these potential benefits, the privatization of foster care in Texas has revealed several significant pitfalls. These challenges underscore the complexity of child welfare systems and the difficulty of translating market principles into effective social services.

1. Inconsistent Quality of Care

One of the most glaring issues has been the inconsistent quality of care provided by private agencies. Reports of children experiencing neglect, inadequate supervision, and poor living conditions have surfaced, raising serious concerns about the ability of private agencies to safeguard vulnerable children. The disparity in service quality often stems from differences in organizational capacity, experience, and resources. Smaller or less experienced agencies may lack the infrastructure and expertise needed to manage complex cases effectively.

2. Profit Motives vs. Child Welfare

Although many organizations involved in Texas’s CBC model are non-profits, they still operate under financial constraints and performance-based contracts, which can create pressures to prioritize cost savings over comprehensive care. For-profit entities, where involved, face even greater scrutiny. The pursuit of profitability can lead to cost-cutting measures that directly impact the quality of care, such as reducing staff, limiting services, or choosing less expensive but potentially less suitable placements for children.

3. Accountability and Oversight

Ensuring accountability and effective oversight in a privatized system is inherently challenging. The decentralized nature of CBC means that oversight responsibilities are distributed across multiple entities, making it difficult to maintain consistent standards and practices. The performance metrics used to evaluate private agencies often fail to capture the nuanced realities of child welfare. Quantitative measures such as placement stability or reunification rates, while important, do not fully reflect the quality of relationships, emotional well-being, or long-term outcomes for children.

4. Workforce Challenges

The transition to privatization has exacerbated workforce challenges within the foster care system. Caseworkers, whether employed by the state or private agencies, face high levels of stress, burnout, and turnover. Privatization can complicate these issues by introducing new administrative and logistical hurdles, such as changes in management practices, increased paperwork, and shifts in organizational culture. These workforce challenges have a direct impact on the quality of care. High turnover rates disrupt continuity of care, making it harder for children to form stable, trusting relationships with their caseworkers.

5. Equity and Access

Privatization can also exacerbate issues of equity and access within the foster care system. Private agencies, driven by performance targets and financial considerations, may be less willing or able to serve high-needs children, such as those with severe behavioral or mental health issues. This can lead to a situation where the most vulnerable children are left with fewer options and less support. Moreover, regional disparities in resources and capacity mean that children in rural or underserved areas may not receive the same level of care as those in more affluent regions. This geographic inequity is a significant concern in a state as large and diverse as Texas.

 

The Regional Disparity

Texas is divided into 17 DFPS regions, each designed to manage approximately 500 children entering care each year. However, this division has led to significant regional disparities in resource allocation and service availability. For instance, 47% of residential treatment center beds are located in Region 6, the Houston region, leaving other regions underserved. 

Consequently, around 60% of children in foster care are currently placed outside of their county of origin, and about 22% are placed outside their DFPS region, sometimes several hundred miles from their homes. This geographic displacement can further disrupt children’s lives and hinder their ability to maintain important familial and social connections.

Incentives and the Community-Based Care Model

The CBC model aims to mitigate these issues by keeping children within a 50-mile radius of their homes. Incentives are offered to placement agencies to encourage local placements, although the specific incentives have not been clearly defined in public documentation. Under the CBC structure, the state must find businesses and non-profits willing to open more emergency shelters and residential treatment facilities in various regions and counties to reduce the need for distant placements.

The current pay structure in foster care does not adequately promote well-being or healing. In contrast, the CBC model incentivizes placements into therapeutic foster homes instead of residential treatment or psychiatric facilities. This shift aims to provide more personalized and less restrictive care environments, aligning with the goal of placing children in the least restrictive setting appropriate for their needs.

Performance-Based Accountability

One of the significant changes under CBC is the implementation of a performance-based system. Currently, there are no metrics to determine the outcome of the child or family progress in the privatized system. However, CBC systems will introduce performance measures with financial incentives tied to achieving specific goals, such as:

– Safety of children in placement

– Placement within the child’s home community

– Minimal placement changes

– Maintenance of contact with family and important persons

– Sibling placements

– Culturally respectful services

– Preparation for adulthood

– Equal opportunities and experiences

– Child and youth participation in decision-making

– Reunification with biological parents when possible

– Placement with relatives or kin if reunification is not possible

 The Phased Implementation

The implementation of CBC is phased, with each stage expanding the responsibilities of private contractors. In Stage 1, contractors provide foster care placement services, preparation for adult living, day care, and adoption services. They share case coordination with CPS but do not provide kinship placements. In Stage 2, which Tarrant County entered in September 2023, the Single Source Continuum Contractor (SSCC) assumes full responsibility for case management, including kinship services and reunification efforts, while CPS shifts to an oversight role. Stage 3 introduces financial incentives and penalties based on the contractor’s ability to achieve permanency outcomes for children in foster care.

Moving Forward: Balancing Public and Private Roles

The experience of privatizing foster care in Texas highlights the need for a balanced approach that leverages the strengths of both public and private sectors while mitigating their respective weaknesses. Several key strategies can help achieve this balance:

1. Strengthening Oversight and Accountability: Robust oversight mechanisms are essential to ensure that private agencies adhere to high standards of care. This includes comprehensive performance metrics and regular, independent audits.
2. Supporting the Workforce: Investing in the workforce is critical to improving the quality of care. This includes providing adequate training, support, and compensation for caseworkers.
3. Ensuring Equity and Access: Policymakers must ensure that all children, regardless of geographic location or level of need, have access to high-quality care.
4. Promoting Collaboration: Fostering collaboration between public and private entities can help leverage the strengths of both sectors.
5. Engaging Communities: Community involvement is crucial. Private agencies should actively engage with local communities to build comprehensive support networks for children and families.

Conclusion

The privatization of foster care in Texas is a complex and evolving experiment. While it holds the promise of innovation and improved outcomes, it also presents significant challenges that must be addressed to ensure the safety and well-being of children. By learning from the pitfalls and successes of the current system, Texas can work towards creating a foster care system that truly meets the needs of its most vulnerable children.