Central Finland welfare region expands youth homes to cut outsourcing costs

The Central Finland welfare region will increase its own residential care capacity for child protection services in the coming years, aiming to reduce reliance on costly private providers, Yle reports.

The move follows a nationwide trend as welfare regions seek to curb rising expenses in foster care. While the number of children in out-of-home placements has remained steady—around 17,000 annually—costs have surged, reaching roughly €1.2 billion in 2024, with over half spent on private-sector services.

Central Finland plans to build a new children’s home by 2028, raising its total in-house capacity to 87 places—a 40% increase since 2023. The region will also open a five-bed unit for intensive residential care this autumn at Hovila Youth Home in Jyväskylä, targeting minors with severe substance abuse, mental health issues, or violent behavior.

Aila Puustinen-Korhonen, a specialist at Hyvila (the welfare regions’ joint expert body), noted that market imbalances in intensive care have forced regions to negotiate individual contracts, driving up costs. Private intensive-care placements can exceed €1,000 per day.

The expansion aims to provide stable, long-term placements and reduce the practice of shuffling children between facilities. “The goal is to stop moving children from place to place,” Puustinen-Korhonen said, emphasizing collaboration between child protection and mental health services under the same regional authority.

Other regions, including Kanta-Häme and South Ostrobothnia, have similarly boosted their own foster care capacity in recent years.