An Audit Report on the Cost of the State's Correctional Managed Health Care Page: 7 of 34
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identified problems with the accounting system the Health Sciences Center
uses (see An Audit Report on Financial System Controls at Texas Tech
University, State Auditor's Office Report No. 06-014, November 2005). The
Health Sciences Center and Texas Tech University (which also uses the
accounting system) have selected a new accounting system and plan to
implement it by September 2008. This should allow for increased automation
in producing the financial reports for the Correctional Managed Health Care
Committee.
Supplemental Appropriations During the 79th legislative session, both institutions
According to the General requested and received supplemental appropriations to
Appropriations Act, the institutions cover their reported operating losses. For both institutions,
are not permitted to supplement the support for the supplemental appropriations requests
funds appropriated for correctional
health care with other appropriated consisted of the accumulation of net operating losses for
or local funds (see Rider 6, page III- correctional health care during the 2004-2005 biennium.
175, and Rider 3, page I11-205,
General Appropriations Act, 78th This methodology appears to be reasonable. It should be
Legislature; and Rider 7, page I11-168, noted that we did not verify the accuracy of the operating
and Rider 4, page I11-194, General
Appropriations Act, 79th Legislature). losses, although they were supported by information in the
Therefore, when the institutions institutions' accounting systems. Determining the
experience operating losses, their
only recourse is to request accuracy of the losses would require verifying the accuracy
supplemental appropriations, of the reported amounts that are significant to the
calculation of each of the losses.
Chapter 1-B
Institutions' Methodologies for Calculating Personnel Costs Are
Reasonable, But the Medical Branch Should Make Certain
Improvements to Its Process for Calculating These Costs
Personnel Costs The institutions' methodologies for calculating
personnel costs are reasonable. The Medical Branch
Personnel costs include the salaries of Medical stfsalo it .rso unt .ihdcos uss n
Branch and Health Sciences Center employees staffs all of its prison unts with doctors, nurses, and
involved in providing health care to state support staff who are Medical Branch employees. As
inmates. These employees include the doctors,
nurses, and support staff who treat inmates in a result, the cost of salaries is the Medical Branch's
clinics at state prison units; employees working at single largest expense for correctional health care.
the Medical Branch's pharmacy; and
administrative staff in each institution's The Health Sciences Center staffs 25 percent of its
correctional health care department. prison units with doctors, nurses, and support staff
In fiscal year 2005: who are Health Sciences Center employees. The
The Medical Branch reported $1 33.7 million in rming75 ecn ftepio nt r tfe
personnel costs. This includes the salaries o remaining 5 percent of the prison units are staffed
2,858 employees, of whom 71 are doctors, 70 with doctors who are Health Sciences Center
are dentists, 1,014 are nurses, and 455 are employees, but the nurses and support staff are
other licensed health care professionals.
" The Health Sciences Center reported $22.6 employees of contracted local hospitals.
million in personnel costs and $21.7 million in
contract payments to local hospitals for The Health Sciences Center pays reasonable
treating inmates in clinics at state prison raetohelclhton
units. The personnel costs include the salaries capitation rates to the local hospitals that provide on-
of 559 employees, of whom 37 are doctors, 11 site health care to the prison units. Payments under
are dentists, 279 are nursessiondl41 are other these contracts are based on a rate per inmate per day
For detailed cost information, see Appendix 2. times 96 percent of the capacity of the unit. If these
payments had been adjusted to each unit's actual
An Audit Report on the Cost of the State's Correctional Managed Health Care
SAO Report No. 07-003
October 2006
Page 2
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Texas. Office of the State Auditor. An Audit Report on the Cost of the State's Correctional Managed Health Care, report, October 2006; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth517778/m1/7/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.