The Ohio Department of Development is moving to “clawback” state grants that have gone to companies that failed to deliver on the promises to create jobs that made those grants possible in the first place.
ODOD Director Mark Kvamme signed 11 clawback notices last week in an effort to recoup $900,000 worth of state grants, the Columbus Dispatch reported.
“If [companies] promised the citizens of Ohio they were going to do this, and they didn’t, there’s got to be consequences,” Kvamme said.
Survey on the Healthcare Financial Landscape Offers a Roadmap for Stakeholders
Zelis highlights how employers, payers, and consumers are integrating digital tools to manage healthcare costs.
But the efforts could be largely symbolic since many of the companies ODOD will pursue have gone out of business, which makes it rather difficult to recover the funds.
The companies (and dollar amounts) that ODOD is pursuing include: Toledo paint shop Haden Prism ($250,000); Warren-based Leedsworld ($163,000); and Columbus-based DVD-kiosk developer e-Play ($182,000). All are no longer in business.
In the past, the state has often failed to take action when companies did not create or keep jobs in return for grants, tax credits or other assistance, according to a report by former Ohio Attorney General Richard Cordray.
Companies failed to keep job commitments in at least 9.25 percent of tax awards, according to the report.
The Mechanics of a More Connected Healthcare Ecosystem [Video]
Arbiter’s Anjali Jameson on hospital and payer alignment.