Chicago boosts migrant shelter staffing contract to $70Mn
CHICAGO, UNITED STATES — The city of Chicago has increased its contract with Favorite Healthcare Staffing by $30 million to continue providing staff for temporary migrant shelters, bringing the total spending limit to $70.2 million.
City records show Mayor Brandon Johnson signed the contract spending increase on December 29th last year. The additional funding comes from a state grant from the Metropolitan Mayors Caucus.
The increase follows the Johnson administration’s renewal of its agreement with Favorite Healthcare Staffing in late October. The contract amendment also states the change is necessary and in the city’s best interest. Since December 2022, the city’s spending portal shows Favorite Healthcare Staffing has been paid over $93.7 million.
Chicago has relied heavily on Favorite Healthcare Staffing to staff its migrant shelters amid a surge of asylum seekers.
However, the Kansas-based company has faced criticism over its high hourly rates, which the administration says it has negotiated lower.
An NBC 5 investigation found Favorite Staffing routinely billed 84 hours per week for most staff, which could cost $220,000 to $859,000 per employee annually, even at reduced rates.
Favorite Healthcare has also faced recent criticism about conditions at the Halsted shelter, where a 5-year-old migrant boy died in December. The cause remains under investigation. Favorite says it is working with authorities to investigate what occurred.
However, the city administration defends renewing the contract inherited from the previous administration, arguing the city needs a company to staff shelters.
The city also stated that they aim to eventually rely less on the contractor by hiring more Chicago residents and agencies.
