The Durango Herald: PERA has another problem
Author: The Durango Herald Editorial Board - August 13, 2018 - Updated: August 13, 2018
If socially responsible investments provided a better return than putting money into gun manufacturing, the market would take care of itself and there would be no need to have an awkward conversation.
But that’s not how markets usually work, as we were reminded when we heard Reveal, the public-radio news program. The installment had reporting by Audrey Quinn, starting with harm done to residents at a facility for the severely disabled in Florida. Its parent company, Bellwether Behavioral Health, has turned contracting with states for developmental disability services into a lucrative business “at the expense of disabled people’s lives,” Quinn says.
In 2015, Wellspring Capital Management, a private equity fund based in New York with $2.2 billion in assets, bought Bellwether. So is Wellspring responsible for what happens at Bellwether homes? There are plaintiffs who think so. Wellspring, along with Bellwether, has been sued for using Medicaid funds to improperly enrich itself.
Read more at durangoherald.com