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Abstract: 

The dramatic and continuing rise in health care costs impacts correctional facilities and their contracted health care providers along with all private and public employers who provide health care coverage to employees. This translates into higher costs for correctional health care contracts that have typically contained high levels of provider-managed risk and multi-year terms with limited renegotiation provisions. Over a relatively short period of time, these factors have created an imbalance in the contracting relationship that must be addressed to insure that productive and viable client-vendor partnerships continue. These changes to business-as-usual do not reduce the substantial savings andbenefits that correctional facilities can realize through contracted health care services. Rather, new contracting arrangements are required to maintain partnership relationships that provide clients with the “best value” and a win-win for both parties.

Keywords: long-term viability, cost containment, liability provisions, Nursing Shortage, formularies, Medicare, litigation, risk

Affiliations:  1: Prison Health Services.