Annual profits

NaphCare to Earn $10 Million in Annual Profits from Arizona Jail Contract

The contractor chosen to provide health care services to people in state prisons expects to earn nearly $10 million in annual profits, according to procurement documents released by the state. The contract represents a 74% increase in the amount of money the state pays to provide health care to each prisoner each day.

On Friday, the Arizona Department of Corrections announced that it had awarded the contract to provide health care to people in state prisons to NaphCare, an Alabama-based health care provider that settled with the United States Department of Justice over allegations of overcharging customers in 2021.

Procurement documents show NaphCare beating out six other companies for the contract: Centurion of Arizona, YesCare Corporation, Wellpath LLC, Wexford Health, Custom X Ray Service Inc. and Assured Imaging LLC. YesCare Corporation, formerly known as Corizon, and Wexford Health, both previously held the state prison health care contract.

The five-year contract, starting October 1, gives NaphCare the option to renew for another five years.

The daily cost per prisoner has nearly doubled since 2019, when Centurion won a contract to provide health care at a cost of $16,604 per prisoner per day.

Brad McLane, Chief Administrator of NaphCare Health Services, and Josh Arnold, Vice President of Talbert House, listen to women in the Hamilton County Justice Center recovery pod.

The state granted Centurion a 15-month extension into 2021, at a per-prisoner per diem rate of $17.5778 per prisoner per day, at a total cost of more than $216 million which included increases for expenses related to the pandemic.

NaphCare charges the Department of Corrections nearly double that amount, $30.65 per inmate per day, to provide health care services to those incarcerated by the state. The company said this was based on an estimated daily population of 25,000 people in state prisons.

NaphCare’s winning bid means prison health care would cost the state $279,681,250 per year, based on a projection of 25,000 residents. The drastic increase in costs comes as the prison population in the state of Arizona continues to decline. The state’s current prison population as of June 2, 2022 was 25,563, down from 28,857 a year prior on June 2, 2021.

The Arizona Department of Corrections did not respond to questions about the kinds of services it hopes to receive in exchange for such a large increase in the amount it pays for prison health care.

There are nearly 8,000 people incarcerated in private prisons under state contract in Arizona, but these facilities administer their own health care and are not part of the state contract.

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The fee schedule submitted by NaphCare shows that the company included $1,095 profit in the cost per prisoner per day. A population of 25,000 inmates would therefore generate an annual profit for NaphCare of $9,991,875.

Under the Centurion contract, there were 1,052.75 full-time employee positions. The NaphCare contract funds 1,106.2 full-time positions.

But NaphCare’s best and latest offer indicated that the company had reduced the final daily cost of the initial offer by eliminating 109 full-time employee positions from its original proposal.

The contract award comes as a federal judge decides the fate of Arizona’s prison health care system, which inmates have long claimed is unconstitutional, putting profits ahead of providing basic care .

Testifying in a 2021 prison health care trial in federal court known as Jensen V Shinn, Centurion vice president Tom Dolan said the Department of Corrections also ignored their suggestions for increasing staff. Dolan told the court that the DOC needed 1,214.25 full-time employees to effectively provide adequate care and deal with the workload in the prisons.

The state prison contract notes that the deal is tenuous, citing the outcome of the Jensen trial.

“The nature and extent of the outcome of this lawsuit are uncertain,” the contract reads. “Whether, in the sole discretion of the Department, post-trial court rulings constitute a material change in the manner and/or cost of providing inmate health care, when considered in the context of the entire contract, then the Department may consider exploring potential corrective measures to ensure the continued and constitutionally compliant provision of inmate health care by all successful vendors.”

U.S. District Judge Roslyn Silver’s decision could come anytime in the coming weeks, and one of the results, receivership, would put the entire system under federal control.

Larry Gann, deputy director of the Arizona Department of Corrections’ Office of Medical Services Oversight, assisted in the procurement process.

Gann testified in federal court in November 2021 that he worked for NaphCare as a director of nursing at a Nevada correctional facility in 2006, and continued to work for the company in other capacities for a total of nine years until 2015, eventually becoming vice-president. the company.

In response to questions about Gann’s involvement in the process, the Department of Corrections said there was no conflict of interest.

“Mr. Gann was among several evaluators who merely made recommendations to the Director of Procurement,” the DOC said in a statement. “His role as one of the evaluators is consistent with the disclosure statement of government contracts and he has been meeting the required separation time since he has worked for NaphCare. The final award decision is made solely by the ADCRR Purchasing Manager in accordance with Arizona Procurement Code 41-2501. »

Got a timely tip about Arizona prisons? Contact the reporter at [email protected] or 812-243-5582. Follow him on Twitter @JimmyJenkins.

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