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Florida Department of Corrections Update on Health Services Cost Containment

Florida Department of Corrections Update on Health Services Cost Containment. Presentation to the Senate Committee on Criminal and Civil Justice Appropriations January 10, 2008. Inmate Health Services.

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Florida Department of Corrections Update on Health Services Cost Containment

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  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. 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.

  6. 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

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