The death of a 9-year-old boy in an Arizona group home has become a focal point in the state's political landscape, as questions surface about the relationship between the provider, Sunshine Residential Homes, and the administration of Democratic Governor Katie Hobbs.
Jakob Blodgett died in 2022 from complications of Type 1 diabetes after staff at a Sunshine Residential Homes facility reportedly failed to administer his insulin doses as prescribed. The boy's death occurred months before the state approved a rate increase for the company, which is Arizona's largest provider of congregate care for children. Sunshine Residential Homes has also made significant political donations to state officials, including contributions to funds associated with Gov. Hobbs.
Gov. Hobbs has stated she was not involved in the decision to increase rates for Sunshine Residential Homes, asserting the decision was made by the department based on the needs of the children in their care. "That was all handled by the department, and they made the decision based on what was in the best interest of the department and the kids in their care," Hobbs said.
An investigation by the Arizona Attorney General's office, led by a fellow Democrat, Kris Mayes, found no evidence of bribery. However, the office concluded that the rate increases were a result of Sunshine's "outsized leverage" as a major provider, noting the company had threatened to reduce its bed capacity if it did not receive an increase. The company indicated it would instead house unaccompanied immigrant children for the federal government, a move that child welfare officials warned would significantly impact the state's ability to place vulnerable children and could lead to siblings being separated.
Records show Sunshine Residential Homes made $550,000 in contributions, including $100,000 to Hobbs’ inaugural fund in December 2022 and $150,000 to a legal defense fund for Hobbs between November 2023 and May 2024.
Republican legislators have raised concerns, and the state auditor general's office is conducting its own investigation. The Maricopa County Sheriff’s Office has also interviewed Sunshine employees as part of an ongoing criminal investigation into Blodgett's death, though no charges have been filed.
Blodgett's case highlights broader issues regarding Arizona's congregate-care system, including the training of staff caring for children with medical needs and the oversight of large providers. Lawyers for Blodgett's family have alleged that the company missed signs of ketoacidosis, a complication of diabetes, and waited too long to seek medical attention. They also dispute claims that the boy refused medication, describing it as a false narrative.
The Arizona Department of Child Safety issued a licensing violation against Sunshine regarding Blodgett's case two weeks before approving the rate increase in May 2023, though the agency did not specify the policy violated. According to court records, the violation was for not administering insulin as prescribed. The state did not fine Sunshine or suspend its license, instead outlining steps for compliance. A spokesperson for Sunshine Residential Homes stated the company followed all policies and procedures for the required care. State officials have acknowledged that group home workers were not adequately trained in spotting the signs of ketoacidosis, a deficiency that contributed to the delay in recognizing Blodgett's critical condition. Another diabetic child died in July 2024 at a different group home in Mesa under similar circumstances after staff reported the boy refused insulin.