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Steps to Control Prison Inmate Health Care Costs Have Begun to Show Savings

NCJ Number
238849
Date Published
January 2009
Length
16 pages
Annotation
As directed by the Florida Legislature, this report reviews the Department of Corrections' (DOC's) efforts to contain health-care costs and identifies best practices in contracting for inmate health care.
Abstract
The DOC reported spending $12.5 million less for inmate health care during the first half of fiscal year 2008-09 than during the same period of the previous fiscal year; however, the total savings impact cannot yet be determined. In its cost-saving efforts, DOC established a hospitalization-use management system. In this system, the DOC's nurses and doctors review each case referred for hospital admission in order to determine whether treatment by a community hospital is necessary according to the DOC's guidelines. In addition, the DOC implemented two staffing initiatives to help contain costs. First, it replaced contracted staff with State employees to provide dental services statewide and pharmaceutical services in Region IV. In-house services have proven to be less costly. Second, the DOC increased starting salaries in order to reduce vacancy rates for key health-service positions. In another cost-cutting effort, the DOC expanded secure hospital bed capacity. Secure hospital beds are located in community hospitals and consist of secure wings with locked passages, security cameras, and a complement of correctional officers. Treating inmates in secure beds reduces costs. Further, the DOC revised its pharmaceutical purchasing and dispensing practices to make them more efficient and also improved its contracting practices by centralizing procurement, making contracts statewide, and negotiating contracts with health care providers to reduce billing rates. Recommendations are offered for procedures the DOC should follow when contracting for health services. 6 exhibits and 1 appendix