SACRAMENTO -- An audit released Wednesday found
widespread mismanagement and overspending in the
state prison health care system, costing taxpayers
millions of dollars.
State procedures for contracting health services
are so poor as to practically invite abuse,
said Controller Steve Westly, who was joined
at a news conference by Robert Sillen, the court-appointed
receiver of the prison medical care system.
Westly highlighted some examples:
-- One urologist charged the state $2,036 an
hour.
-- An orthopedic surgeon, in a single day's
invoice, billed for 30 hours' worth of work.
The surgeon billed the state nearly $1.5 million
in one year.
-- One doctor who was paid more than $500,000
over a 10-month period provided inaccurate test
results for Hepatitis C. The Department of Corrections
and Rehabilitation proceeded to pay the same
contractor for retesting, and then renewed the
doctor's contract for three years.
More broadly, the audit found "no clear
policies" for overseeing billing and contracting
for medical services. And because of deficiencies
in contracting procedures, the state has paid
millions more than other entities for the same
services, the audit stated.
"What we've seen here," Westly said,
"is a pattern of consistent mismanagement
and a lack of internal financial controls."
A series of articles by the Mercury News last
year documented a number of problems in the
prison health care system. In one instance,
the Mercury News found, the state was shelling
out tens of thousands of dollars to a doctor
who was no longer seeing patients because he
had been placed on administrative leave after
being linked to the deaths of three inmates.
Terry Thornton, a spokeswomen for the Department
of Corrections and Rehabilitation, did not dispute
the audit's findings but said the problem cuts
across many state agencies. The rules for contracting
medical services and hiring physicians, for
example, involve other departments.
"We agree there have been deficiencies,"
Thornton said. "That's why we welcome the
involvement of the receiver so we can fix all
of this."
Sillen said the audit is one in a long list
of problems with the prison health system, which
he is working to reform. He is to meet with
Gov. Arnold Schwarzenegger and legislative leaders
today about possible reforms. The Legislature
convenes Monday for a special session on prisons.
"The important thing," Sillen said,
"is there are still needless deaths of
people in the prisons because of the state's
own unwillingness or inability to address these
issues over the years."