FROM THE FOUNDATION

Redefining the Safety Net

Should California establish a Basic Health Program for certain low-income residents? CHCF's Marian Mulkey captures a recent policy conversation in a Health Affairs blog.

Accountable Care in Action

A new post on the Health Affairs blog details how CalPERS kept costs down in Sacramento through a "virtual" ACO with insurers and providers.

Career Opportunity: Senior Program Officer

This position will play a major role in furthering the goals and objectives of the foundation's Better Chronic Disease Care program.

Long-Term Care

Wednesday, August 25, 2010

Audit Finds Oversight Problems at Agency for Developmental Services

The Bureau of State Audits recently released a report finding that regional centers overseen by California's Department of Developmental Services did not follow proper protocol when awarding contracts, "California Watch Blog" reports.

DDS oversees the state's 21 regional centers, which contract with other not-for-profit organizations to provide in-home care and other direct services to residents with developmental disabilities. The regional centers are not-for-profit agencies that spend around $3.4 billion annually to serve 240,000 residents.

The Assembly Committee on Accountability and Administrative Review ordered the audit of DDS, which found that:

  • The regional centers have issued millions of contracts without allowing for competitive bidding;
  • The centers have undertaken limited action to create an objective base for setting rates for services; and
  • Workers at regional centers have a fear of retaliation for reporting suspected wrongdoing.

De La Torre's Legislation

Assembly member Hector De La Torre (D-South Gate), chair of the Assembly committee, said the audit findings reinforce earlier reports about DDS' "favoritism in contracting, a lack of information about how regional centers spend billions of public dollars per year and the pervasive fear of retaliation among regional center staff and service providers."

He said his committee has introduced legislation that would provide employees at regional centers with the same whistle-blower protections that cover state workers. De La Torre said he hopes the bill will pass this session.

DDS Response

Rita Walker, deputy director of DDS, said the department has sent guidance to regional centers reminding them to strengthen their policies and procedures on contracting, conflict of interest and service purchasing.

A DDS spokesperson said the agency conducts its own audits of regional centers, which it will begin posting online by Aug. 30 (Jewett, "California Watch Blog," 8/25).



Readers are invited to send feedback to: chl@chcf.org

Click to register for California Healthline