1

Florida Department of CorrectionsUpdate on Health Services Cost Containment

Presentation to the

Senate Committee on Criminal and

Civil Justice Appropriations

January 10, 2008

2

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.

3

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.

4

Budget Deficit…

FY 2006-2007 $25.0 million deficit

FY 2007-2008 $43.6 million deficit Prescription Drugs $25 million Health Services $17 million

5

Catastrophic Costs for FY 06-07

518 cases costing $25.25 million

AncillaryEvents

$225,380

Emergency Hospital

Admissions$19,353,631

Scheduled Hospital

Admissions$4,119,571

AmbulatorySurgery$740,705

SpecialtyConsults$247,465

EmergencyRoom

$564,438

6

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.

7

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