Foster parents no longer in lurch

LINCOLN — A agreement reached with a bankrupt provider of child welfare services ensures that the company's employees, foster parents and subcontractors will be paid, state officials say.

The Department of Health and Human Services announced the agreement with the Omaha-based Visinet late Monday.

Under the agreement, HHS will directly pay foster parents and subcontractor agencies, and Visinet will pay its former employees.

HHS checks will be issued after payment information has been verified, which is expected to take seven to 10 days.

“We know this has been a difficult time for everyone involved, and we appreciate everyone's patience as we worked together to resolve this situation,” said Todd Reckling, director of HHS's division of children and family services.

Tyler Newton, a former Visinet employee, said he wants to know more about the details of the plan.
He said he is concerned about whether the state will pay Visinet all the company is owed and wants to know when people may get their money. HHS officials have said the state owes Visinet in excess of $1 million.

Newton said the delay in payment has created hardships for former employees, some of whom are struggling to keep their homes.

Visinet was one of five private agencies that signed contracts last fall to care for children and families in the child welfare and juvenile justice systems.

Less than six months afterward, Visinet and Cedars Youth Services of Lincoln have dropped out, saying their payments from the state were inadequate.

HHS terminated its contract with Visinet after the Omaha-based agency filed for bankruptcy. Visinet folded April 15, leaving employees, foster parents and subcontractors in the lurch.

The goal of the state's privatization plan is to reduce the number of children in out-of-home care and improve services for children and families.

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