Privatized prison medical care put on fast track

Since then, lawmakers have learned the proposal, which requires legislative approval, is already moving forward.

Requests were sent Jan. 15 to fast track the switch so that if the plan is approved, the yet-to-be selected private firm could start providing medical services when the new fiscal year begins July 1.

Guinn said the move would cut 321 state jobs, saving an estimated $4.4 million during two years.

Some lawmakers are skeptical and the State of Nevada Employees Association has promised to fight the proposal.

But Prisons Director Bob Bayer believes privatization will save the state between 5 percent and 10 percent of the cost of providing care.

"Private firms can be very innovative and jump on the latest technologies," he said.

Lawmakers in 1995 approved a contract to privatize the medical care provided to inmates at Ely State Prison, and Bayer said the company has lived up to expectations.

The medical contractor at Ely has stayed within its budget, which shows privatization of medical services works, he said.

But Bob Gagnier, executive director of the state employees' group, said the Ely contract raises questions about whether a private company can save money.

In the past, he said the state has had to pay for excess medical expenses at Ely that were not covered by the contract, including a payment totaling $100,000 in 1997.

Last year some Ely inmates were brought to Carson City-area prisons so they could receive medical treatment at state-run medical facilities. The total cost of the treatment was $257,000, of which only $65,000 was reimbursed to the state by the private company in Ely, he said.

"We think the idea stinks," Gagnier said. "We think companies will come in with lowball bids. Once a company gets the contract and controls the entire prison medical system, they will raise their fees because there will be no competition."

Assembly Ways and Means Chairman Morse Arberry, D-North Las Vegas, said he is aware of situations in other states where private companies have simply walked away if they did not make money on a contract.

Sen. Joe Neal, D-North Las Vegas, said his concern is that if a private company makes money by reducing the level of care, then resulting inmate lawsuits could cost taxpayers millions of dollars.

But state Budget Director Perry Comeaux said similar legal risks exist now with medical care provided by the state.

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