Ozmint wisely nixes
effort to privatize prison health care
CORRECTIONS DIRECTOR Jon Ozmint is right to abandon efforts to
privatize prison health care after learning during negotiations that
it would not result in significant cost savings.
Mr. Ozmint said last week the department was not able to strike a
deal that would provide a level of savings that justifies changing
from the state system to a private system.
That says a lot about the cost and efficiency of the state’s
system. It delivers service at less cost than many other states —
cheaper than most of the approximately 30 that have privatized their
medical care. While it has its faults, the Palmetto State’s prison
medical system works fairly well, fiscally speaking. Corrections
spends about $2,500 a year on each inmate for medical expenses, Mr.
Ozmint said.
When he first began considering privatization, Mr. Ozmint said he
felt the state could get a better price and better coverage by
privatizing. But after two months of negotiating, he found that
wasn’t so.
We objected when Mr. Ozmint began negotiations with potential
firms. We felt it was premature to do so ahead of a study of current
medical services authorized by lawmakers. The Budget and Control
Board has asked the University of South Carolina to conduct the
study, which is to include a cost-benefit analysis and a
determination as to whether privatization is cost-efficient.
Mr. Ozmint’s rush to negotiate a deal had us concerned that too
much emphasis was being placed on cost alone and on Gov. Mark
Sanford’s passion for privatization.
While cost is important, it should not be the only factor when it
comes to delivering vital government services. The real problem with
the prison system is that it is — and long has been — woefully
underfunded and the Legislature has no political will to change
that. The Legislature is unwilling to pay the true cost of running
prisons or to reduce the number of nonviolent inmates in our
prisons. Instead, it has passed laws that send about 1,000
additional inmates into the prisons each year, without the resources
to handle that greater load.
As far as the practice of privatization goes, there may well be
some government services that can and should be farmed out. But we
should never take the position that privatization is always good.
Nor should we believe it is always bad.
It had seemed the governor and Mr. Ozmint were determined to
privatize health care no matter what. It is a relief to see that in
the end pragmatism won out over ideology. It turns out Corrections
officials took a practical approach and made the right decision as
stewards of the state’s affairs.
When Corrections first began considering privatization, we said
Mr. Ozmint must present compelling evidence that the change would
result in better, more efficient health care delivered in a manner
consistent with governmental principles. Upon learning he could not,
he decided privatization is not the way to go after all.
The governor has said he will continue to look for savings, as
well he should. But he and the Legislature should simultaneously be
working on how to fund Corrections if no further reasonable cuts can
be
found. |