This morning, the California State Auditor released an audit report exposing the dangerous Sexually Violent Predator Conditional Release Program (SVP CONREP) currently overseen by the Department of State Hospitals (DSH). The audit highlights DSH’s failures in properly overseeing its state contractor, Liberty Healthcare, despite paying the contractor almost $100 million since the release program began. After years of public outcry over the reckless release of sexually violent predators (SVP) into communities, Senate Minority Leader Brian W. Jones (R-San Diego) called for this audit last year. Click here to read the audit report and here for a landing page with more information about SVP releases.
“Today’s audit reinforces exactly what we’ve long been warning about: the Newsom Administration’s Department of State Hospitals has failed to properly oversee the dangerous sexually violent predator release program contracted out to Liberty Healthcare,” said Leader Jones. “Over the last 20 years of a no-bid contract, DSH has paid Liberty Healthcare nearly $93 million to manage just 56 individuals—averaging $1.66 million per SVP. With this price tag, Californians deserve real safety assurances, but the audit reveals critical lapses in safety oversight and even reoffenses among released SVPs. This longstanding contract has allowed Liberty Healthcare’s performance to slip, while DSH fails to hold them accountable.
“As we’ve said all along, SVPs should be housed on state property under constant supervision, as past governors have mandated. The auditor's suggestion of transitional housing – even on state-monitored grounds – is a step DSH has stubbornly resisted but deserves serious consideration. It’s clear the current release program fails to meet expectations and safety standards. I look forward to working with the Legislature next year to fix this program, rein in Liberty Healthcare, and ensure DSH delivers the public safety Californians expect and deserve,” continued Leader Jones.
After a year of anticipation, the Auditor’s report reveals shocking details about SVP CONREP. Key findings include:
Exorbitant Costs of the Program and No-Bid Contract
- Since the program’s inception in 2003, it has placed 56 program participants into the community and provided services such as treatment and supervision. During this time, the State has contracted with a single vendor, Liberty Healthcare, to provide the program’s services. (Page 1)
- From fiscal years 2003–04 through 2023–24, DSH contracted for a total of nearly $93 million in services from Liberty Healthcare. (Page 28)
- From fiscal years 2018–19 through 2022–23, DSH’s annual payments to Liberty Healthcare for program services increased by 77 percent, growing from $5.3 million to $9.4 million. (Page 28)
- DSH has not been successful in obtaining bids to perform program services from any vendor other than Liberty Healthcare since the program began in 2003, although DSH has made at least four attempts to seek such bids. (Page 2)
Reoffenses Occur Despite High Costs
- 4 percent of program participants reoffended after their release from a state hospital... (Grant Parks Cover Letter)
Failure to Hold Liberty Healthcare Accountable and Ensure Safety Standards
- DSH has not held Liberty Healthcare accountable for resolving the various deficiencies in its administration of the program. (Page 51)
- DSH concluded that the electronic system was not functioning in a manner…to inform treatment decisions and mitigate risks to public safety. (Page 25)
- …we did identify a small number of placements that were within five miles of another placement. (Page 33)
Recommendations for Transitional Housing
- Multiple other states have programs that are similar to California’s program and that use state-owned, state-operated, or contracted transitional housing for participants who are no longer confined to state hospitals. (Page 19)
- DSH should explore establishing state-owned transitional housing similar to other states. (Page 35)
“The bottom line is that the safety of children, the elderly, and other vulnerable Californians have been given short-shrift by Liberty Healthcare and casual monitoring by DHS,” concluded Jones. “Secretly attempted placements of SVPs near schools; attempted escapes and fence-hopping by SVPs; and the continuing hide-the-predator game-playing by the Newsom Administration has got to stop. The Legislature now has all the evidence we need to step in and reform the whole costly, wasteful, and dangerous SVP release program.”
Last year, the Joint Legislative Audit Committee unanimously approved Leader Jones’s request to audit the SVP release program. Nearly 1,600 Californians signed the petition in support of the audit after years of frustration and safety concerns. Click here to download the full audit request letter.