Families who say their children suffered from being institutionalized for prolonged periods are suing three Georgia agencies that provide mental health services. The federal lawsuit was filed Wednesday on behalf of families of four children with mental disorders that attorneys say worsened as the youths were institutionalized repeatedly and for long periods.

More states are moving to specialized managed-care contracts solely to handle medical and behavioral services for foster kids. But child advocates, foster parents, and even state officials say these and other care arrangements are shortchanging foster kids’ health needs.

Three to four days a week Ernestine Mims comes to the Senior Center in Twiggs County to eat lunch with her friends. On a recent afternoon, t he women s...