The Limits of Outsourcing in Social Care: The Case of Youth-at-Risk Residential Services

In 2019, the Social Welfare Office decided to close Beit Ariel, a residential care facility for at-risk girls that had operated successfully for over 30 years. The decision sparked public opposition but remained unchanged. Then, instead of closing, the Welfare Office renovated the facility and reopened it as a home for at-risk boys. Now, five years later, a new tender designates it once again for at-risk girls. These drastic shifts occurred without consultation—not with the operating bodies, professionals, or, most critically, the youth receiving the service. The impact on Beit Ariel’s residents, all placed by court order, was overlooked. The increasing privatization of social welfare has reshaped the state’s role in caring for its most vulnerable populations. This issue is particularly apparent in youth residential care, where tender-based service provision contradicts the long-term, relational nature of care. Social care cannot be effectively outsourced without compromising stability, professional integrity, and the rights of those it serves. This presentation critically examines how outsourcing via tender processes are fundamentally unsuitable for youth at-risk residential care, leading to disruptions in service and care continuity, a focus on cost over quality, and the weakening of professional autonomy. More broadly, it questions whether a state that subjects its most vulnerable groups to market-driven procurement mechanisms can still be considered a welfare state. By analyzing the hybrid governance of social services and its contradictions, this presentation aims to broaden the discussion on the regulatory challenges of social care privatization, offering insights into the limits of applying economic logic and principles on deeply social and ethical responsibilities.