Key facts
- Sunshine Residential Homes, Arizona's largest group home provider, is under scrutiny following the 2022 death of 9-year-old Jakob Blodgett from Type 1 diabetes complications.
- The company made $550,000 in political contributions, including to Governor Katie Hobbs' campaign and legal defense fund.
- Sunshine received a 30% rate increase from the state shortly after making these donations.
- The Arizona attorney general's office found no evidence of bribery but cited the company's "outsized leverage" as a factor in the rate increase.
- The state Department of Child Safety issued a licensing violation against Sunshine related to Blodgett's case, but no penalties were imposed.
- Separate investigations by the state auditor general and Maricopa County Sheriff's Office are ongoing.
Sunshine Residential Homes, the largest group home provider in Arizona, is facing allegations of a pay-to-play scheme following the 2022 death of 9-year-old Jakob Blodgett. Blodgett died from complications of Type 1 diabetes after staff at the group home reportedly failed to administer his insulin doses and only advised giving him water when his blood glucose was high.
Records indicate that Sunshine made substantial political donations, totaling $550,000, including $100,000 to Governor Katie Hobbs' inaugural fund and $150,000 to her legal defense fund. Months after these contributions, the state approved a 30% rate increase for the company.
While the Arizona attorney general's office found no evidence of bribery, it concluded that the rate increases were largely a result of Sunshine's significant leverage over the state, as the company threatened to reduce its bed capacity. This leverage, according to the family's attorney, means there are no consequences for the company when a child dies in its care.
Governor Hobbs has stated she was not involved in the rate increase decision, attributing it to the Department of Child Safety. However, her Republican challenger, U.S. Rep. Andy Biggs, has made the scandal a central theme of his campaign.
The state Department of Child Safety had issued a licensing violation against Sunshine related to Blodgett's case prior to the rate increase, but no fines or license suspensions were imposed. The agency stated it detailed compliance steps for Sunshine, which were not publicly disclosed.
Separate investigations by the state auditor general's office and the Maricopa County Attorney are ongoing, and the Sheriff's Office has interviewed employees as part of a criminal investigation into Blodgett's death, though no charges have been filed.