Senate Committee Chairmen Praise $23.8 Million Savings on Inmate Health Care Contract
MONTGOMERY – The chairmen of the state Senate’s General Fund Budget and Joint Legislative Contract Review Committees today praised the Alabama Department of Corrections for reducing a contract for prisoner health care by $23.8 million. The contract was recently approved by the Contract Review Committee.
Senator Arthur Orr (R-Decatur), Chairman of the Senate General Fund Budget Committee, credited Alabama Department of Corrections’ Commissioner Kim Thomas for going above and beyond the parameters put in place by the Senate in the General Fund budget that passed during the 2012 legislative session.
“We set a goal for the Department of Corrections to reduce its inmate health care cost by 10 percent,” Orr said. “They met and exceeded the goal – identifying a 12 percent savings for fiscal year 2013 – which will save taxpayers $23.8 over the next three years. Commissioner Thomas has done an excellent job identifying ways to reduce costs without compromising the standard of care. Thanks to this and countless other cost-saving measures implemented over the past two years, we are well on our way to reach our goal of saving $1 billion a year in taxpayer resources.”
The following language was added by the Senate in the appropriation bill for fiscal year 2013: “It is the intent of the Legislature that the Department of Corrections reduce its inmate health care total cost by 10 percent, beginning FY2013. The above appropriation includes a 10 percent reduction in inmate total costs.”
The majority of savings was realized through two contracts, one related to medical and dental care and the other related to mental health care. The total cost of inmate health care contracts in FY12 was $102 million. The new contracted amount of $90 million for FY13, $94.5 million in FY14 and $98.2 million in FY15 represents a savings of $23.8 million over the three-year period.
Orr also added that he intends to continue writing cost-reduction language into the budget to encourage more agencies to scrutinize spending and reduce costs.
Senator Bill Holtzclaw (R-Madison), Chairman of the Joint Legislative Contract Review Committee, cited the Department of Corrections contract as a prime example of how the contract review committee can ensure resources are allocated as intended by the General Fund budget legislation.
“The contract review process is essential to making sure we’re spending taxpayer resources responsibly across state government,” Holtzclaw said. “This contract is a perfect example of an agency working with the General Fund budget chairman and the contract review committee to reduce spending. I applaud Commissioner Thomas for his willingness to work with us to produce such a significant savings.”
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