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MDHHS ordered to reinstate "performance-based" foster care system in Kent County

A wooden gavel rests on a desk in front of a row of dark blue legal books.
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The state of Michigan must reinstate a “performance-based” foster care system in Kent County, after a Court of Claims judge struck down changes made earlier this year.

The ruling restores a possible lifeline to the nonprofit that’s overseen foster care cases in the county for most of the past decade.

“We’re very excited,” said Sonia Noorman, CEO of the West Michigan Partnership for Children, which sued MDHHS over the changes implemented in October. “We’re still fully staffed, operational, ready to go if and when the department reaches out.”

For years, the foster care system in Kent County has been administered differently than in other Michigan counties because of a state law requiring the “performance based” system.

The West Michigan Partnership for Children was created to be the local agency that oversees that system.

But the state health department cut funding to the nonprofit abruptly in October, after legislators removed language mentioning the agency in the state budget. The department argued the budget change meant that the group would no longer administer foster care cases in the county, and MDHHS took responsibility for those cases instead.

Under the system, neither WMPC nor MDHHS provides foster care services directly, but instead oversees the foster care placements to a network of five foster care agencies.

WMPC argues that under its oversight, those agencies were held to standards that improved outcomes for children and families.

MDHHS argued the abrupt change in administration didn’t affect the 426 children who were in Kent County’s foster care system at the time of the change, because the agencies directly providing the foster care system were still handling the cases.

Noorman said her agency hasn’t been able to follow up with the children.

“So I’m really hopeful there hasn’t been any interruption of service,” Noorman said. “I think this system really impacts outcomes for children more long-term.”

WMPC argued its oversight of foster care in Kent County has led to shorter stays in the foster care system for children, and more placement with relatives. It also developed an enhanced foster care service for children who needed more care, it said.

The state health department questioned its results, citing a study from the University of Michigan that found some outcomes for kids in Kent County were not significantly better than similar kids in other counties, and that WMPC’s administration cost the state more.

WMPC challenged the methodology of the study.

In his ruling issued this week, Court of Claims judge Christopher Yates seemed to side with WMPC, writing that testimony during a hearing for the case demonstrated WMPC’s impact.

“At the hearing, it was undisputed that WMPC furnished services that the MDHHS did not offer, with measurably improved outcomes for the children who were eligible for those services,” Yates wrote.

Yates also sided with WMPC’s argument that the state health department is still required to implement a unique foster care system for Kent County, which should be “performance based” and involve “prospective payment”, meaning the direct foster care providers should be paid upfront for providing foster care services rather than being reimbursed after the fact, as they are in other Michigan counties.

But Yates said the law did not give him the authority to require MDHHS to contract with WMPC to administer that system, as it has in the past. Yates added in a footnote to his order that he has “doubts” MDHHS could implement a system to satisfy its legal requirements without involving WMPC, but he said he would give MDHHS 30 days to figure it out and implement a system.

Noorman said WMPC reached out to MDHHS through attorneys after the ruling was issued on Monday, but has yet to hear back.

Michigan Public reached out to MDHHS for comment on Wednesday, a state holiday. The department did not immediately respond.

Dustin Dwyer reports enterprise and long-form stories from Michigan Public’s West Michigan bureau. He was a fellow in the class of 2018 at the Nieman Foundation for Journalism at Harvard. He’s been with Michigan Public since 2004, when he started as an intern in the newsroom.
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