Economy

‘Youth care institutions with high profits a problem for many municipalities’

This is evident from a survey by Pointer among more than 130 aldermen. More than three quarters of them see youth care institutions that make more than 10 percent profit or pay dividends as a problem.

Substantial cuts

An alderman tells the research program that her municipality has had to spend a lot of money for years on youth care and the WMO (Social Support Act), which meant that other facilities such as libraries had to be significantly cut back.

At the end of last year, the Social and Cultural Planning Office (SCP) already concluded that things have not improved much for the vulnerable since the decentralization of care.

‘About the backs of clients and municipalities’

Almost all councilors (92 percent) say to Pointer that there is a shortage in the budget for youth care in their municipality. It is frustrating to them that at the same time there are youth care institutions that make significant profits, in some cases up to 25 percent per year.

“The system makes it easy to get rich quick at the expense of clients and municipalities,” explains emeritus professor of public finance Harrie Verbon to Pointer.

37 percent of the aldermen say they receive signals that health care money is not being well spent, but action is rarely taken. According to the aldermen, this is because it is legally difficult or profit figures are not public.

Better supervision

Verbon believes that municipalities should monitor youth care better. “There are hardly any municipalities that look at annual accounts. They should. This way they can deduce why a care provider has so much money left or offer a lower rate if necessary.”

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