Innovative Foster Care Financing

Youth Villages, a nonprofit based in Memphis, Tennessee, has become a national leader in high-impact programs and services to help emotionally troubled children and their families. With a presence in 10 states and the District of Columbia, they offer a fully integrated continuum of services, including residential treatment, in-home services, foster care and adoption, mentoring and a transitional living program for young adults aging out of foster care. According to a 2008 Harvard Business School study, Youth Villages has “demonstrated a proven track record and a level of performance far superior to that of most other child social service organizations, both for-profit and nonprofit, and at significantly lower costs—up to 80% depending on the specific context.” Youth Villages was recognized by President Obama in 2009 as a “type of results-oriented nonprofit that transforms communities with innovative and promising ideas.”   

Youth Villages’ government relations objective is to transform public funding systems for at-risk youth so that more cost-effective models which demonstrate outstanding results can compete for federal and state resources. Specific policy objectives include: an extension to the current Title IV-E waivers, a  modification to Medicaid1915(c) language to extend home and community-based services as an alternative option to psychiatric residential treatment facilities, and the development of a Medicaid code so states can better utilize the in-home services model. The Sheridan Group is working with Youth Villages to develop a policy agenda, cultivate policy leaders, introduce legislation, and build political support with relevant Committee offices.

Project Director: Sara Guderyahn

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