Florida Department of Corrections Update on Health Services Cost Containment

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Florida Department of CorrectionsUpdate on
Health Services Cost Containment
Presentation to the Senate Committee on Criminal
and Civil Justice Appropriations January 10, 2008
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Inmate Health Services

• The Department must provide physical, mental, and
  dental health care to all inmates, as required by
  federal law.
• The Florida Department of Corrections employs a
  variety of Managed Care principles to accomplish
  reductions in inmate health care costs.

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Financial Constraints

• Price Level Increases
• The true cost of providing care exceeds
  appropriations largely as a result of price level
  increases.
• Prison Population Growth
• Additionally, unanticipated growth in Floridas
  prison population is not accounted for in current
  year appropriations.

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Budget Deficit

• FY 2006-2007 25.0 million deficit
• FY 2007-2008 43.6 million deficit
• Prescription Drugs 25 million
• Health Services 17 million

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Special SessionBudgetary Proviso

• The Department of Corrections shall release an
  invitation to negotiate to examine
• (a) Contracting with a statewide preferred
  provider organization or other network provider
• (b) Purchasing drugs through a consortium and
• (c) Identifying savings through utilization
  management controls.
• The Department shall report its findings by
  January 15, 2008.

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Major Initiatives for 2008

• Restructure the Utilization Management Process
• Comprehensive Review of Pharmacy Expenses
• Develop a Plan to Restructure Region IV (South
  Florida) Medical Services