1. 1 Florida Department of Corrections Update on Health Services Cost Containment Presentation to the Senate Committee on Criminal and Civil Justice Appropriations January 10, 2008

2. 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. 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 Floridas prison population is not accounted for in current year appropriations.

4. 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

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6. 6 Special Session Budgetary 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.

7. 7 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