Part of the problem is that although DHS pays more than a half-billion dollars a year for services from outside companies, it budgets only about $3 million to make sure they perform the work.
Of the more than 1,600 DHS employees, only about 15 evaluate private providers.
That small group reviews not only the 40 SCOH providers, but 250 or so other contractors that perform work for DHS.
DHS auditors spend three to five days randomly sampling case files. Among other checks, the auditors make sure caseworkers have at least a bachelor's degree. Typically, analysts will call a family or DHS caseworkers only if something seems amiss in the records.
Even the association of private providers agreed that the current system of evaluating contractors was flawed.
"Performance standards say nothing about the quality involved. You may have one five-minute contact that is a breakthrough, but that's not reflected in a report." said Bernadette M. Bianchi, executive director of the Pennsylvania Council of Children, Youth and Family Services.
Relying less on paperwork and more on interviews with clients, Evans said, will strengthen the oversight system.
Last year, when former Councilman Michael Nutter proposed legislation requiring all city contracts to be put out for competitive bids, Cheryl Ransom-Garner, then the DHS commissioner, fought for and won an exemption under the law for existing services.
At the time, top DHS officials argued that if private providers were forced to compete there would be a lapse of service to families during the bidding process and the system would collapse.
National experts who have helped other states privatize their child-welfare systems said large cities should solicit bids for contracts and evaluate providers by looking at the results of their work. Child welfare systems should not rely on a review of documents to make sure children are safe.
"Agencies that have put in place sound accountability do not behave that way," said Mark Courtney, who teaches in the School of Social Service Administration at the University of Chicago.
He said one reason cities privatize social services is to make departments more nimble.
"If you don't have a good accountability system that measures outcomes and you're not willing to fire poor performers, then you're not nimble," Courtney said. "You're a hostage."
Read The Inquirer investigation and coverage of resulting reforms at
Contact staff writer John Sullivan at 215-854-2473 or johnsullivan@phillynews.com.Inquirer staff writers Craig R. McCoy and Nancy Phillips and former Inquirer staff writer Wendy Ruderman contributed to this article.
