Privatization could save some money at API, not at youth centers

Source: Andrew Kitchenman, APRN, February 6, 2017
 
Consultants who studied the privatization for the state found that management of the institute, as well as operating the state’s juvenile justice detention centers, are better done by the state.  Coy Jones is the senior consultant for Public Consulting Group and said savings depend on how many patients are at the psychiatric institute. … The state also couldn’t find savings in privatizing pharmacy services at Pioneer Homes.  The state studied privatizing services as a result of a new law that overhauled Medicaid in Alaska. The Senate Health and Social Services Committee held a hearing on the studies Monday.

Related:

Studies recommend against privatizing psychiatric hospital or juvenile jails
Source: Michelle Theriault Boots, Alaska Dispatch News, February 1, 2017

Alaska would not benefit by using contractors to run its juvenile jails or the Alaska Psychiatric Institute, according to a pair of Legislature-ordered reports on privatization written by consultants. The feasibility studies were mandated as part of a health care bill passed by the Alaska Legislature in 2016. With Alaska facing a $3.2 billion budget crisis, the privatization studies were supposed to examine whether the state could hand over management of its only psychiatric hospital and its short-term juvenile jails to private groups and save money without threatening the quality of services. The answer for juvenile jails was an unqualified “no.” Rather than corporate prison companies like Geo Group, which the Department of Corrections uses to run halfway houses around the state, the state seemed to be looking for a different approach for running detention centers where arrested teenagers are held short-term. … Alaska’s Department of Corrections already leans on the world’s largest private prison company, Geo Group, to manage all but one of its halfway houses.

… For the overburdened Alaska Psychiatric Institute, privatization might end up being more expensive than state control, the study found. Handing over management of the psychiatric hospital to a private company or a nonprofit would cost more “even after significant staff reductions,” according to a letter on the study’s findings sent by Davidson to legislators. It would be better, the evaluators found, if the state continued to manage the hospital that is supposed to serve as Alaska’s safety net for mentally ill people.

Should Alaska Psychiatric Institute be privatized?
Source: Annie Zak, Alaska Dispatch News, August 26, 2016

Members of the mental health community and general public had a chance on Thursday to voice concerns and ask questions about the possibility of the state-run Alaska Psychiatric Institute becoming a private entity. A Boston-based company called Public Consulting Group Inc., is conducting a feasibility study to identify and analyze potential options for how to best manage API. … The Legislature passed a broad health care bill this year that mandates the Alaska Department of Health and Social Services, in partnership with the Alaska Mental Health Trust Authority, look at whether a private contractor for API works for the state. The feasibility study will examine several options for what to do with the facility, including keeping it under state ownership and contracting out for some operations; forming a public corporation to operate API; keep it under state ownership but look for new sources of revenue; and contracting with a nonprofit or for-profit third party to take over management and operations. … A private operator of API would be subject to a state oversight committee, according to the DHSS. … The plan is to have the API feasibility study ready for the Legislature to review in January. …

Psychiatric hospital privatization to be discussed
Source: The News Miner, August 22, 2016

The Alaska Department of Health and Social Services and the Alaska Mental Health Trust Authority are hosting a roundtable discussions about privatizing the Alaska Psychiatric Institute, Alaska’s only public psychiatric hospital. A study about privatizing the hospital is a mandate of Senate Bill 74, signed into law by Gov. Bill Walker earlier this year. The Public Consulting Group, Inc., won the contract for the feasibility study on June 11 to identify and analyze potential options for privatizing the hospital. …

Alaska selects winning bids for privatization studies
Source: Zack Hale, State of Reform, July 19, 2016

Alaska’s sweeping Medicaid reform bill, signed into law last month by Gov. Bill Walker, included provisions that require the state to hire outside contractors to perform feasibility studies for privatizing some parts of the state’s health care system. Specifically, the law mandates an analysis of the privatization of certain pharmacy services, juvenile facilities, and the Alaska Psychiatric Institute. So far the state has received two winning bids from firms that will perform feasibility analyses for the privatization of juvenile facilities and the state’s only public psychiatric hospital. … Carter Goble Associates, LLC, (CGA) submitted the winning bid to examine the feasibility of privatizing the programs offered in the Department of Juvenile Justice’s short-term secure detention facilities for youthful offenders. CGA’s winning proposal can be read here. … Public Consulting Group, Inc. (PCG) submitted the winning bid to conduct a feasibility analysis for privatizing certain aspects of the Alaska Psychiatric Institute, which the proposal notes “serves as the sole safety net for the entire state.” PCG’s winning proposal can be read here. …

Alaska looks into privatizing some health and juvenile justice services
Source: Annie Zak, Alaska Dispatch News, May 27, 2016

The Alaska Department of Health and Social Services on Wednesday put out requests for proposals for studies that would examine privatization of services at the Alaska Psychiatric Institute, four Division of Juvenile Justice facilities across the state, and the pharmacy program at Alaska Pioneer Homes. … For API, some of the options include contracting a for-profit or nonprofit entity to take over management and operations; forming a public corporation to operate the hospital; keep it under state ownership and look for new revenue streams; or keep it under state ownership and contract out for certain services. … The state is also looking at potential options to privatize four short-term juvenile detention facilities in Nome, Ketchikan, Kenai and Palmer. The state is asking whoever performs the feasibility study also analyze the possibility of converting one or more of the facilities to offer nonsecure residential mental health and/or substance abuse treatment services. … Alaska Pioneer Homes, which provide assisted living care and pharmaceutical services to people 65 and older, is a state-run program that is “serving a greater proportion of high acuity residents than in the past, as prospective residents have been staying in their own homes as long as possible,” the RFP said. … The state wants an outside contractor to look at the costs and income of the current pharmacy program, as well as the needs of the program (like pharmacist consultations, or managing medication), to find out what the best option is to privatize it.