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Presentation on managing inmate health costs, budget deficits, and initiatives for 2008 by the Florida Department of Corrections. Includes strategies for reducing healthcare expenses and reorganizing medical services.
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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
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.
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 Florida’s prison population is not accounted for in current year appropriations.
Budget Deficit… • FY 2006-2007 $25.0 million deficit • FY 2007-2008 $43.6 million deficit • Prescription Drugs $25 million • Health Services $17 million
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.
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