LINCOLN- State licensure officials barred a Kansas contractor from caring for any new Omaha-area children and families for 60 days starting on Friday.

The Department of Health and Human Services Public Health Division imposed the restriction Thursday along with granting St. Francis Ministries a probationary license as a child placing agency.

In the meantime, any new child welfare cases in Douglas and Sarpy Counties will be handled by state child welfare workers, according to an HHS release. The department will deploy existing staff to manage the cases, while hiring additional workers.

HHS officials said that "while St. Francis has shown improvement in key areas, the decision to restrict new referrals is the best course of action right now to allow (St. Francis) the time to work with (the department) to correct deficiencies and build appropriate staff."

“I have seen this work in other states over the course of my career. This is a way for DHHS to augment St. Francis’ resources,” said HHS CEO Dannette Smith.

St. Francis Ministries, a nonprofit based in Salina, Kansas, holds a multi-million contract with HHS to manage the care of abused and neglected children in the two-county area. The contract and St. Francis' performance under it have been controversial and are the focus of a legislative investigation this summer.

The agency has yet to meet key requirements of its contract, including the caseload limits for workers set by state law.

In addition, state health inspectors put the agency's license as a child placing agency on probation in May after the nonprofit failed a September inspection and, despite repeated opportunities, had not corrected its problems by mid-April. HHS initially gave St. Francis until Aug. 1 to correct its deficiencies, then extended the deadline to Sept. 30.

Thursday's action extends the probationary license for another 60 days but adds the restriction on accepting new cases. St. Francis has 15 days to appeal the decision.

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