Chicago adds $100M to controversial staffing contract
Chicago adds $100M to controversial staffing contract
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The city of Chicago approved a $100 million change order and contract extension for Kansas-based Favorite Healthcare Staffing to provide staffing of the city’s temporary migrant shelters, NBC Chicago reported. The increase now brings the total value of Favorite’s contract to more than $334 million.
City aldermen have criticized Favorite Healthcare Staffing for charging hourly rates between $50 to $156 per hour, and an investigation last year found Favorite routinely billed the city 84 hours per week per employee. However, Chicago Mayor Brandon Johnson said the contracts saved the taxpayers over $200 million, citing “less people in shelters because we have operationalized a system of care.”
“The City of Chicago Department of Procurement Services recently approved increasing the limit to the amount of funds which Favorite Health Staffing can invoice the City for asylum seeker services,” the city’s Department of Family & Support Services told NBC Chicago in an emailed statement. “While this is not an approval for additional funding, it will enable the City to pay for shelter services previously rendered by Favorite Health since April 2024 through next month, October 2024.”