COLUMBUS, Ohio (WOWO) — Ohio officials are taking another step toward addressing the rising cost of foster care placements after the state approved an extension of a contract aimed at developing a standardized pricing system for providers across Ohio.
The Ohio Controlling Board this week approved a $253,016 contract extension for the Ohio Department of Children and Youth to continue working with consulting firm ICF Inc. on a market-rate study and statewide foster care rate card, according to NBC4 in Columbus.
State officials say foster care placement costs have increased by roughly 50%, placing significant financial pressure on county children services agencies, which are typically responsible for covering much of the expense while working to quickly find safe placements for children removed from their homes.
“This is a very intentional step to provide transparency to this process, ultimately to assist counties with their ballooning costs,” Ohio Department of Children and Youth Legislative Director Bryan Stout told the Controlling Board.
The statewide rate card concept was included in Ohio’s most recent operating budget. State leaders hope it will provide counties with better pricing information when arranging foster care placements, although officials acknowledge finding meaningful comparisons has proven difficult.
Stout said the original plan relied on foster care providers voluntarily submitting financial information to the state. However, participation was too limited to produce statistically reliable results.
“Initially it was contemplated to be the providers would send us relevant information,” Stout said. “Unfortunately the response rate on that was not statistically significant.”
Officials also noted that placement costs vary widely because children entering foster care often have different medical, behavioral or mental health needs, and not every provider offers the same level of specialized care.
State Rep. Bride Rose Sweeney, a Democrat from Westlake and a member of the Controlling Board, questioned whether the available data would be sufficient to create an accurate pricing system and asked whether the state should require providers to submit financial information.
“This is undoubtedly one of the biggest costs on our counties. It’s ballooning, of course we want transparency,” Sweeney said. “Do we have confidence in that number being accurate?”
Stout said extending the contract will allow the department to supplement provider information with multiple years of private cost reports and federal labor statistics to improve the analysis without immediately requiring providers to disclose additional financial records.
“In terms of compelling, obviously that’s kind of a policy conversation relative to potentially licensure or payment ramifications,” Stout said. “The contract amendment before you is basically the best way that we can get reliable information and data for these providers in order to provide transparency and accomplish legislative intent.”
State officials say the goal is to create a more transparent pricing system that helps counties better manage foster care costs while ensuring children continue receiving the services and placements they need.
