Subcommittee rejects Guinn's prison medical privatization plan

CARSON CITY - Gov. Kenny Guinn shouldn't privatize the state's prison medical programs, a key budget subcommittee said Tuesday.

Panel members said they were reluctant to turn over what is essentially the state's responsibility to a for-profit corporation.

Since the Republican governor first announced the plan in his state of the state address in January, lawmakers have been debating its implications - with Democrats generally opposing the move to farm out prisoners' medical care.

Assemblywoman Chris Giunchigliani, the subcommittee chairwoman, warned in March that she wouldn't support Guinn's plan and expected the Assembly to follow her lead. Democrats hold a 28-14 advantage in the Assembly.

Supporters say hiring private companies to provide medical care for Nevada's entire 9,200-inmate population would reduce red ink. The administration predicted a savings of $4.4 million over the next two years if the plan were adopted.

But more than 300 prison employees would lose their state jobs if the plan was approved, although they might have been able to transfer to the private company hired to run the medical services.

Opponents also say that having profit-driven companies treat inmates could open the door to poor quality care and any resulting lawsuits could cost the state dearly.

Prison medical staffers packed hearing rooms to urge legislators to kill the plan, saying they're doing a good job and working to save the state money.

Legislators - Republicans included - took their point.

"In my contacts with staff, they indicate to me that they can do it, and do it better," said Sen. Lawrence Jacobsen, R-Minden, who voted to pass the budget package out of the subcommittee without the governor's plan.

"We opted not to do that because (the state employees) made a good case that they could perform the services at a lower cost, keeping the cost down and providing the same level of care," said Sen. Bill O'Donnell, R-Las Vegas.

The recommendation of the joint budget subcommittee now goes to the Senate Finance and Assembly Ways and Means committees for final approval before going on to a vote by both houses.

The subcommittee did approve Guinn's plan to shut down the Southern Nevada Correctional Center in Jean in time for the opening of the new Cold Springs prison in September 2000.

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