Negotiate prison
health care contract after study finished
STATE PRISON OFFICIALS should wait until researchers complete a
study ordered by lawmakers before negotiating with a private firm to
take over prison health care.
Department of Corrections chief Jon Ozmint wants to begin
negotiations with the top bidder now and simply wait until the study
is finished to sign a deal.
But it would be premature to negotiate a contract ahead of the
study. That might suggest officials have decided they are going to
privatize no matter what and that they have no interest in
potentially helpful information that might come from the report.
Corrections has yet to justify privatizing prison health care. It
obviously hasn’t convinced the majority of legislators. If it was
the General Assembly’s intent for privatization to move faster, it
would have voted to encourage that rather than ask for more
information.
Lawmakers passed a proviso ordering a study reviewing current
medical services at prisons and identifying what the state could
privatize. The Budget and Control Board has asked the University of
South Carolina to conduct the study, expected to be completed by
October. It is to include a cost-benefit analysis and a
determination as to whether privatization is cost-efficient.
Nothing in the proviso prohibits Corrections from negotiating
with a bidder. But Mr. Ozmint should tread lightly in trying to
fast-track privatization, a practice favored by Gov. Mark Sanford.
Being heavy-handed in this matter could cast a negative shadow on
one of the governor’s top agenda items — restructuring. Legislators
could get nervous about giving the governor more power if they
believe he might use it to push through policy decisions without
regard for what they think.
It makes sense for Mr. Ozmint to look for a better, more
efficient way of delivering medical service at a lower price. But
the state must exercise due diligence in considering privatizing
such a vital service.
South Carolina had problems when it hired a private company,
Correctional Medical Services, to deliver health care in some
prisons from 1986 to 2000. CMS is one of three national firms
looking to get the state’s business this time around. The other two
are Wexford and Prison Health Services.
A March 2000 Legislative Audit Council report said the state did
not do its homework before deciding to privatize prison health care
last time. The state should not make the same mistake again.
The state is responsible for providing an adequate level of
health care to prisoners. It cannot simply subcontract those duties
to a private firm and allow the free market to govern how services
are delivered. It must ensure that they are provided in a manner
consistent with governmental principles.
South Carolina’s prison medical system works fairly well. It
delivers service at less cost than many other states, even cheaper
than most of the approximately 30 that privatize their medical care.
But Mr. Ozmint believes the state can get a better price and better
coverage. The state does not have around-the-clock medical coverage
in some prisons.
In order to determine whether hiring a private firm is best, the
idea must withstand necessary scrutiny.
Mr. Ozmint has said he wants his “ducks in a row” before
committing to privatization. That should include honoring the will
of the Legislature and waiting for the study on privatization to be
completed. |