Category Archives: Health.Care

Insurers Fall Short In Catching And Reporting Medicaid Fraud, Inspectors Find

Source: Chad Terhune, Kaiser Health News, July 12, 2018

Despite receiving billions of dollars in taxpayer money, Medicaid insurers are lax in ferreting out fraud and neglect to tell states about unscrupulous medical providers, according to a federal report released Thursday. The U.S. Health and Human Services’ inspector general’s office said a third of the health plans it examined had referred fewer than 10 cases each of suspected fraud or abuse to state Medicaid officials in 2015 for further investigation. Two insurers in the program, which serves low-income Americans, didn’t identify a single case all year, the report found. Some health plans terminated providers from their networks for fraud but didn’t inform the state. The inspectors said that could allow those doctors or providers to defraud other Medicaid insurers or other government programs in the same state. In addition, some insurance companies failed to recover millions of dollars in overpayments made to doctors, home health agencies or other providers. The inspector general said insurers stood to benefit financially from this because higher costs can justify increased Medicaid rates in the future. (The report didn’t name specific insurers or states.) …

…Health insurers serve about 55 million Medicaid patients across 38 states, and play an increasingly vital role in running the giant public insurance program. … One in 5 Americans is on Medicaid and enrollment is poised to rise even further as more states consider expansion under the Affordable Care Act. About 75 percent of Medicaid patients are part of a privatized system in which managed-care companies are paid fixed fees per patient to coordinate their care. Big, publicly traded companies such as UnitedHealth, Anthem and Centene dominate the business. In some states like California, evidence shows the funding often flows to the plans with little oversight, sometimes regardless of their performance. These companies tout their expertise at spotting suspicious billing patterns and chasing down criminals using sophisticated data mining, but the inspector general found that their fraud-fighting results don’t always match the rhetoric. …

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Unhealthy Skepticism

Source: Suzanne Gordon and Jasper Craven, Washington Monthly, July/August 2018

The Department of Veterans Affairs was back in the news this spring—and, as usual, the news wasn’t good. … But here’s a different story about the VA, from the exact same time period, that major media outlets didn’t bother to report: In March, researchers at the nonprofit research organization RAND published a study revealing the gross inadequacies of New York State’s health care system to effectively treat veteran patients. A month later, RAND found that the quality of VA care was generally better than private health care. These were just the latest of scores of studies that have come to the same conclusion for nearly two decades now. … As the U.S. continues to debate what to do about its unsustainable health care system—and as conservatives continue to push for “free market” solutions, including privatizing the VA itself—the fact that a government-owned and -operated system is outperforming the private sector should be a major story. If VA care is as good or better than the alternative, how would pushing vets into private-sector care make them better off? But that question rarely gets asked, because too many people are unaware that the premise guiding these policies—that the private sector inevitably outperforms government—is false.

… The point is not that the VA has no problems; it does. The point is that by failing to compare it to other health care systems, journalists can present a distorted impression that plays into ongoing efforts to privatize an agency that outperforms the rest of the U.S. health care system on most metrics. … Most recently, with bipartisan support, Congress passed the VA Mission Act, a “reform” package that could massively divert more veterans’ care from the VA to private-sector providers—which, in turn, would likely force the closing of many VA hospitals. Meanwhile, the Trump administration would clearly like nothing better than to be able to outsource lucrative contracts for VA care to its friends in the private sector. If the press doesn’t get this story right soon, America’s biggest and most successful example of government-provided health care will soon pass into history.

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For the first time, a senator is opposing the VA secretary nominee
Leo Shane III, Military Times, July 11, 2018

Senate Veterans’ Affairs Committee members on Tuesday voted to advance the nomination of Robert Wilkie to be the next secretary of Veterans Affairs, but the move came with a symbolic and historic opposition vote against the move. The panel by voice vote sent Wilkie’s nomination to the Senate floor, but with Sen. Bernie Sanders, I-Vt., opposing the move. … Sanders, the former chairman of the committee, said he also intends to vote against Wilkie when his nomination comes to the full Senate for a vote. … “This has less to do with Mr. Wilkie than President Trump,” Sanders said following the vote. “Trump has been very clear about his desire to move to the privatization of the VA, and I suspect any of his appointees will try and move the agency in that direction.”

VA nominee pledges to oppose privatization
Source: Nahaniel Weixel, The Hill, June 27, 2018

President Trump’s nominee to lead the Department of Veterans Affairs on Wednesday said he doesn’t believe in privatizing the agency and pledged to oppose privatization efforts. “My commitment to you is I will oppose efforts to privatize,” even if it runs counter to the White House agenda, Robert Wilkie told a Senate panel. Under questioning from Sen. Bernie Sanders (I-Vt.), Wilkie said he would keep the VA “central” to the care of veterans, but indicated there can be a balance. Democrats and some veterans service organizations believe the White House is being influenced by Charles and David Koch, conservative billionaires who back the group Concerned Veterans for America (CVA), which is pushing to loosen current restrictions on veterans receiving private-sector care. …

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St. Luke’s sues prison contractor over $12 million in medical bills

Source: Audrey Dutton, Idaho Statesman, July 16, 2018

St. Luke’s Health System is suing an Idaho prison contractor over $12.6 million in medical bills it says the contractor hasn’t paid. The lawsuit was filed June 28 against Corizon Health, a company hired by the Idaho Department of Correction to provide medical care to Idaho’s inmates. The dispute stems from Corizon’s decision to pay St. Luke’s at the Medicaid rate for services the health system provided between July 1, 2014, and March 26, 2018. The Medicaid rate is “substantially lower” than the rate the health system says Corizon had agreed to pay, according to the lawsuit. St. Luke’s said it should have received 76 percent of its billed charges. St. Luke’s also seeks more than $3 million in interest on the medical bills, as well as a total of more than $600,000 for individual patients’ bills it says Corizon underpaid. … The lawsuit is the second filed by Idaho health care providers against the contractor. Saint Alphonsus Health System in April sued Corizon over similar claims, saying it was owed $14 million for medical care to inmates. Saint Al’s also sought $5 million in interest from the allegedly unpaid bills. …

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Prison violations led to amputations and death, Idaho inmates say
Source: Associated Press, March 27, 2017

Idaho inmates are asking a federal judge to penalize the state after saying prison officials repeatedly violated a settlement plan in a long-running lawsuit over health care, leading to amputations and other serious injuries and even some prisoners’ deaths. In a series of documents filed in federal court, the inmates’ attorney Christopher Pooser painted a bleak and often gruesome picture of the alleged problems at the Idaho State Correctional Institution south of Boise. The prison is the state’s oldest, with more than 1,400 beds, including special units for chronically ill, elderly and disabled inmates. Pooser and the inmates allege some prisoners were forced to undergo amputations after their blisters and bedsores went untreated and began to rot, and others with serious disabilities were left unbathed or without water for extended periods and given food only sporadically. The prison’s death rates outpaced the national average as well as rates at other Idaho facilities, according to the documents. And despite hearing evidence to the contrary, prison officials failed to double-check the numbers when its health care contractor, Corizon, reported being 100 percent compliant with state health care requirements. Meanwhile, prison officials were falsifying documents to make it look like all employees were trained in suicide prevention when many were not, the filings said. The inmates are asking the judge to hold the state in contempt of court and levy more than $24 million in fines against the Idaho Department of Correction. They say the state could cover some of the fines by recovering money paid under its contract with Corizon, but they also want the state to feel the budget hit so prison leaders will be motivated to make a fix. …

Manlius nursing home residents go without food, medicine; NYC owner fined

Source: James T. Mulder, syracuse.com, July 10, 2018

A Manlius nursing home without enough staff to clean, feed and toilet residents has been fined $22,000 by the state. An inspection of the Onondaga Center for Rehabilitation and Nursing conducted in February found the facility was so short-staffed some residents did not get insulin and other medications on time or at all. The 80-bed home, formerly known as the Crossings, was bought last year by Centers Health Care, a New York City-based for-profit chain that owns 53 nursing homes in New York, New Jersey and Rhode Island. The state Health Department recently posted information about the fine on its website. … The report cited the facility for 24 deficiencies, at least three of which resulted in harm to residents. Many of the problems were repeat deficiencies. … Three certified nurse aides during the day and one to two aides at night typically cared for 35 to 40 residents. … Some residents did not get lunch until after 1:30 p.m. because there were not enough staff to deliver meal trays. … One resident had to be hospitalized after becoming dehydrated because there was no registered nurse on duty to provide fluid intravenously. … Seven residents did not get proper care to heal and prevent bed sores.

… The nursing home made a profit of $1.8 million in the first eight months of 2017 before it was acquired by Centers Health Care, according to SNFdata, a company that reports nursing home financial data. Financial results since Centers Health Care took over were not available. … The state recently fined another one of the chain’s nursing homes in Queensbury near Lake George $10,000 after a resident died in a nursing home van accident last year. …

LePage to end deal early that outsourced Medicaid staff

Source: Matthew Stone, Bangor Daily News, July 11, 2018
 
Gov. Paul LePage’s administration is putting an early end to a contract it awarded to a Massachusetts firm to handle part of the state’s Medicaid application process and take over the jobs of 10 state employees.  The administration entered into the contract this winter without soliciting competitive bids, and even though having the contractor perform the work would be more expensive than keeping state employees on the job, the BDN reported in February. The Maine Department of Health and Human Services awarded the 25-month, $5.6 million contract to Commonwealth Medicine in Shrewsbury, Massachusetts, to have the firm’s specialists determine whether people are disabled for the purpose of qualifying for state-funded health coverage through Medicaid.  Now, the contract will end after a year, and DHHS late last month issued a request for proposals seeking competitive bids to provide the service. …

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LePage Administration Outsources Part of Medicaid Program
Source: Associated Press, March 3, 2018
 
Republican Gov. Paul LePage’s plan to outsource part of the state’s Medicaid application process will cost the state more. The Bangor Daily News reports that the LePage administration acknowledges in a publicly posted contract document that there will be a “slight increase in cost.” The Maine Department of Health and Human Services in June will eliminate the positions of 10 state employees and enter into a $5.6 million, 25-month contract with a division of the University of Massachusetts Medical School. The agency didn’t respond to request for comment. …

Health provider in scandals loses first 3 state contracts

Source: Doug Thompson, Arkansas Democrat-Gazette, July 7, 2018

The state began closing down the first three of its 16 contracts with Preferred Family Healthcare on Friday, after a year and a half of scandals that include convictions of four former lawmakers on corruption charges. Preferred Family is a nonprofit behavioral health and substance abuse treatment company. It has 47 locations in Arkansas. The Springfield, Mo., company has $28 million in contracts with the state to provide services ranging from therapy and counseling for foster children to court-ordered drug and alcohol addiction treatment and professional consulting to the state Department of Human Services. In addition, the company received more than $33 million a year through the state Medicaid program. Preferred Family operates in five states. … A U.S. Department of Justice investigation has obtained three guilty pleas and one jury conviction against former Arkansas lawmakers in a multimillion-dollar corruption scheme that started at least as early as 2010. … The state was assured by Preferred Family it had dismissed the company executives involved since the first guilty plea Jan. 4, 2017. Then former Preferred Family executive Robin Raveendran was charged last week, accused of filing $2.3 million in improper Medicaid claims for mental health services. Gov. Asa Hutchinson and the state’s Office of Medicaid Inspector General announced the state would cancel contracts with the company and suspend Medicaid payments to it. …

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Troubled Missouri nonprofit settles wage lawsuit amid federal probe of bribery, kickback scheme
Source: Wesley Brown, Talk Business & Politics, July 1, 2018

During the period when a Missouri healthcare nonprofit was doling out millions of dollars in bribes and kickbacks to Arkansas lawmakers, public officials and its own well-paid executive team, the troubled healthcare group was fleecing hundreds of lowly paid hourly workers out of overtime pay, according to allegations in a recent federal lawsuit. In early April, Springfield, Mo.-based Preferred Family Healthcare (PFH) agreed upon a tentative settlement with former employee Frances Smith over allegations that PFH and its handful of Arkansas-based affiliates failed to pay the former healthcare worker and other agency employees overtime compensation for working over 40 hours per week, according to pleadings with the U.S. District Court for the Eastern District of Arkansas. …

Preferred Care settles for $540,000 in whistleblower upcoding case

Source: Elizabeth Leis Newman, McKnight’s, July 6, 2018

Nursing home chain Preferred Care agreed to settle False Claims Act charges for $540,000, the Department of Justice has announced. Federal officials accused the company of upcoding Medicare beneficiaries between July 2012 and October 2017, and of providing “worthless services” at Kentucky’s Stanton Nursing and Rehabilitation Center for three years. … Preferred Care, which owns or operates 100 skilled nursing facilities, declared bankruptcy last November. A bankruptcy court approved the settlement on June 26. As part of the settlement, the company does not have to admit to liability. …

Unions try to thwart $250M Southampton hospital project

Source: Aidan Gardiner, The Real Deal, June 12, 2018
 
Three unions — the Civil Service Employees Association, New York State United Teachers and the Public Employees Federation — are trying to block state legislation necessary to build a $250 million hospital on Stony Brook’s Southampton’s campus, 27 East reported. The unions don’t like the plan for operating the hospital once it’s built, saying that the majority of the employees would not be subject to civil service laws. The legislation, which needs to be voted on before the legislature closes on June 20, would allow Stony Brook to lease the property to the nonprofit Southampton Hospital Association, which would then raise the money to build the hospital. …

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State Unions Throw Up Roadblock To Key Bill Clearing The Way For New Hospital In Southampton
Source: Joseph P. Shaw, 27 East, June 8, 2018
 
State unions are working to block legislation to clear the way for Stony Brook Southampton Hospital to begin raising money for a new facility on the college campus, apparently concerned about the potential future impact on the workers they represent. … But a trio of state unions representing workers at hospitals like Stony Brook University Hospital, which is owned and operated by the State University of New York system, have formally opposed the legislation, worried that it might be an attempt to move jobs from the public sector to the private sector. At issue is the unusual arrangement at the heart of plans for the new hospital, a key to the affiliation agreement between the former Southampton Hospital and the Stony Brook system that was finalized less than a year ago, according to Mr. Chaloner. … Three state unions—the Civil Service Employees Association, New York State United Teachers and the Public Employees Federation—issued a memo strongly opposing the legislation. Their concerns, Mr. Chaloner said, are rooted in the fact that Southampton Hospital was a private entity, and its workers remain represented by a different union focusing on the private sector, 1199SEIU United Healthcare Workers East. …

The Woman Standing in the Way of the Privatization of Thousands of Jobs in Tennessee Was Just Fired

Source: David Dayen, The Intercept, May 7, 2018

A university chancellor who took a controversial stand to protect the jobs of thousands of public workers has now lost her own. University of Tennessee-Knoxville Chancellor Beverly Davenport was abruptly fired from her post last week, in a move representatives for unionized campus workers are calling another step toward the privatization of thousands of facilities management jobs. The battle in Tennessee pits the state’s GOP governor, Bill Haslam, against its public workers, and UT-Knoxville is where the workers, backed by a student movement, have made their stand. The workers see Davenport’s firing as an effort to remove a key obstacle to privatization. …

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Public Workers Worried That Tennessee’s Billionaire Governor Is Taking Another Run at Them
Source: David Dayen, The Intercept, April 4, 2018

Last year, Tennessee’s governor attempted a frontal assault on the unionized workers that staff the state’s facilities and management jobs at public buildings, two-thirds of which are state-run colleges. Gov. Bill Haslam, the richest U.S. elected official not named Donald Trump, signed a contract with a facilities management firm to privatize those jobs. But a prodigious campaign by the campus employee union and student activists led to nearly the entire University of Tennessee system publicly opting out of the contract. … But Haslam appears to have found a work-around. The Tennessee legislature is on the verge of passing a bill to overhaul the University of Tennessee’s entire board of trustees, allowing Haslam to hand-pick the replacements. That board could pressure campuses to opt back into the privatization contract at any time over the next four years. …

How a Scrappy Campus Union Saved Tennessee From Privatization
Source: Chris Brooks and Rebecca Kolins Givan, In These Times, March 20, 2018

… The resulting $1.9 billion contract was the largest in Tennessee government history, and privatized the maintenance and management of up to 90 percent of state-run facilities, including state and university buildings. It was awarded to Jones Lang LaSalle (JLL), a multinational with a history of bribery accusations. … What the privatizers didn’t plan for was the United Campus Workers (UCW), a scrappy higher education union affiliated with the Communication Workers of America (CWA). Public-sector unions in Tennessee are legally barred from engaging in collective bargaining, and the state has no obligation to recognize or negotiate with them. Instead, the union relies on a mixture of legislative advocacy, workplace actions and mass mobilizations. Few unions exist in a harsher political and legal environment, yet the UCW is punching far above its weight, increasing its membership while securing victories against better-funded foes. …

Workers’ unlikely victory over outsourcing in Tennessee
Source: Elizabeth Stanfield and Jon Shefner, Facing South, February 6, 2018
 
Last fall, United Campus Workers-Communications Workers of America Local 3865 (UCW) achieved an important victory for organized labor’s fight against privatization and erosion of public-sector jobs. For more than two years, they campaigned to stop Tennessee’s billionaire Republican governor, Bill Haslam, from outsourcing all state facilities service jobs. Their campaign involved multiple constituencies and tactics and played a key role in the University of Tennessee system’s decision not to participate in the outsourcing contract. The fact that this victory was won in a red state by a union without collective bargaining or dues check off is a powerful reminder of what organized workers can achieve against great odds. This victory is worth paying attention to because it reminds us that even in the face of tremendous obstacles, organized workers can win. …

University of Tennessee campuses will not outsource facilities jobs
Source: Rachel Ohm, USA TODAY, October 31, 2017

In a move celebrated by state workers on college campuses, University of Tennessee administrators announced Tuesday they will not be participating in a proposed facilities outsourcing plan pushed by Gov. Bill Haslam. The announcements by UT Chattanooga, UT Knoxville, UT Martin and the UT Health Science Center ended more than two years of speculation about whether campuses in the UT system would participate in the plan. …

Council urges Univ. of Memphis to decline state outsourcing contract
Source: Michelle Corbet, Memphis Business Journal, September 20, 2017

With the University of Memphis’ next Board of Trustees meeting set for early October, members of the Memphis City Council are asking that the group think twice before opting into the state’s facilities management contract. It’s no secret the University of Memphis plans to opt into the state’s property management contract, said Councilman Martavius Jones, who sponsored a resolution Sept. 19 urging local universities and their administrators to do the opposite. In May, the State of Tennessee entered into a contract with Chicago-based JLL to privatize maintenance, security, janitorial and landscaping services for state-owned public colleges and universities. “Based on my experience on the school board, the quality of the service, the cleanliness and the general morale suffered [when outsourced],” said Jones, who served on the Memphis City Schools Board from 2006 to 2013. …

Does Outsourcing Some State Jobs Save TN Taxpayers Money?
Source: Local Memphis, August 31, 2017
 
Many Tennessee lawmakers hope to see if outsourcing some state jobs actually saves taxpayers money. It’s been a controversial topic since Governor Bill Haslam began implementing the idea a few years ago.  Questions about outsourcing are always the same. Does it save money and is there accountability?  “There’s… people concerned about state jobs all over Tennessee,” said one protester.  Many state lawmakers have heard and seen the protests about the ongoing outsourcing of state jobs. That’s why a majority of legislators from both parties signed a letter of concern earlier this year to Governor Haslam. The Governor has defended outsourcing state jobs in some areas, especially on state college campuses. …

UT campus workers protest Gov. Haslam’s outsourcing plan
Source: WBIR, August 28, 2017

University of Tennessee Knoxville staff, faculty and students joined local business leaders, state representatives and faith leaders in a demonstration Monday to call on university officials to “opt-out” of Gov. Bill Haslam’s outsourcing plan. The demonstration was organized by United Campus Workers. Last week, a bill to introduce oversight in outsourcing was heard in summer study in the General Assembly. If the university were to “opt-in”, United Campus Workers believe as many as 10,000 facilities jobs, including hundreds in Knoxville, would be outsourced. Those who oppose the plan fear it will result in job loss, loss of oversight and accountability, reduced services and negative consequences for local businesses which provide services to campuses. …

Outsourcing is not working and it hurts working Tennesseans
Source: Dwayne Thompson, Tennessean, August 10, 2017
 
Since August 2015, Gov. Bill Haslam’s administration has pushed a radical experiment in outsourcing that would turn thousands of state facilities workers jobs, millions of square feet of Tennesseans’ real estate, and hundreds of millions of taxpayer dollars to the multinational giant JLL.   There has been widespread opposition to the outsourcing plan. Facilities services workers, faculty, and staff have significant concerns that outsourcing will compromise the quality of services on which effective teaching, research and service rely.  Students have spoken up about fears for safety if a revolving workforce replaces the workers they know and trust. …

Tennessee Inks Collaborative Facilities Management Contract With JLL
Source: Kate Vitasek, Forbes, June 29, 2017
 
The state of Tennessee has signed a facilities management contract to help the state provide the best service to citizens and employees at the lowest possible cost for taxpayers.  The contract was awarded to Jones Lang LaSalle (JLL) for five years with up to five one-year extensions. It allows the state of Tennessee’s various agencies and institutions to utilize JLL’s professional facilities management services. The potential scope covers over 7,500 state run properties spanning 97 million square feet. …

Controversial state plan to outsource college jobs moves forward
Source: Adam Tamburin, The Tennessean, May 26, 2017

Tennessee moved forward with a controversial plan to outsource jobs at public colleges Friday when officials finalized a contract with a corporation that already handles a sizable amount of state business.  Under the contract, JLL — which currently manages about 10 percent of state facilities — will oversee the potential expansion of outsourcing at college campuses, state parks and prisons. It is a pivotal moment for the proposed expansion, which has been in the works for two years. …

Majority of lawmakers ask state to slow down on outsourcing
Source: Adam Tamburin, The Tennessean, May 2, 2017

Seventy-five state lawmakers have signed a letter urging Gov. Bill Haslam’s administration to postpone a plan to outsource jobs on college campuses and other state-owned property, delivering yet another blow to the controversial proposal. In the letter to Finance and Administration Commissioner Larry Martin, signed by Republicans and Democrats from both chambers, the lawmakers ask to delay the outsourcing plan to allow “enough time to address concerns from the General Assembly.” … This is only the latest sign of deep reservations surrounding the project, which Haslam has championed against wide-ranging criticism for more than a year. Workers’ rights advocates, including a union representing campus workers, have blasted Haslam for prioritizing money over state workers and their families. College leaders have predicted the change would hurt services on campus. …

Tennessee’s billionaire governor works with his corporate buddies to privatize government jobs
Source: David Dayen, The Intercept, April 27, 2017
 
Tennessee’s state government has inked a sweetheart deal with a company linked to the state’s billionaire governor to privatize thousands of facilities and management jobs at colleges, prisons, and other public buildings.  It’s being touted by some officials in other states as a model for the nation.  The $330 million, five-year contract covers custodial services, groundskeeping, and repair and maintenance work. Government officials say that each public facility can choose to only partially comply, or opt out, keeping their employees on the public payroll. “If they’re happy with business as usual, there’s nothing to do,” said Michelle Martin, a spokeswoman for the office that issued the contract. …

Jones Lang LaSalle Wins Bid for Haslam’s Campus Outsourcing
Source: Associated Press, March 30, 2017

Real estate giant Jones Lang LaSalle has been selected as the winning bidder for Republican Gov. Bill Haslam’s plan to privatize property management on the campuses of the Tennessee’s public colleges and universities. The Chattanooga Times Free Press reports (http://bit.ly/2nwO7Dh) the Chicago-based company that already manages a large number of general state government buildings beat out proposals by Aramark and Compass Group. It’s not yet clear how many campuses will choose to participate in the privatization plan. Final cost details won’t be known until the five-year contract is signed. …

Officials say state outsourcing is working, but plenty of skepticism remains
Source:Jake Lowary, USA TODAY NETWORK – Tennessee, March 8, 2017

Despite $26 million in savings reported by state administration officials, some lawmakers and state employees remain skeptical or outright opposed to Gov. Bill Haslam’s effort to privatize many state agencies or operations within state government. Privatization of facility management, especially at public colleges and universities, has been a sort of sidecar initiative of Haslam for the past three years, in an effort to make state government more efficient and reduce costs. But many state workers still fear they will either lose their job or the areas that some have committed their lives to will suffer in quality. Larry Martin, state finance commissioner, was flanked by several officials from his department and told a Senate Oversight and Investigations Committee on Wednesday that the governor’s plan is working.

… Sen. Jeff Yarbro, D-Nashville, said he’s not been able to fully ascertain how the state arrives at the data it does regarding its overall savings, and requested that information from Martin and Hull. He questioned the data, specifically as it relates to the labor force, where the savings have not come. … Sen. Janice Bowling, R-Tullahoma, also questioned the notion of privatization, saying that it’s almost impossible for the state to restart or regain the management of those services once they’ve been outsourced to private companies. Representatives from the United Campus Workers offered some of the sharpest criticism to the privatization proposal from Haslam’s office, which has yet to be finalized and was indefinitely delayed last week. Melanie Barron, an organizer with UCW, said the request for proposal laid out by Haslam is “rife with loopholes” and despite promises from Haslam and other state leaders that agencies will be able to opt out of the RFP, little clarity about how to opt out has been provided. … The RFP for public facility management, which is separate from a different RFP to manage Fall Creek Falls State Park facilities, closed at the end of February. The state intends to issue a letter of intent to award at the end of March, Martin said. …

Opinion: Outsourcing state jobs hurts Tennessee
Source: Rep. John Ray Clemmons, The Tennessean, December 20, 2016

Gov. Bill Haslam is gambling with our tax dollars and Tennesseans’ lives. His outsourcing scheme involves eliminating up to 17 percent of current state employees’ jobs at state college and universities, parks and elsewhere. Outsourcing public jobs will result in great profits for private corporations but less oversight, lower quality, and the elimination of all accountability for citizens. The tragic school bus accident in Chattanooga is an unfortunate illustration of this fact. Hamilton County Schools contracted with Durham School Services, a private company, to operate its school buses. After 36 injury crashes in Tennessee since 2014, Durham was still transporting children. … Haslam’s steadfast outsourcing efforts, in the face of statewide opposition, stand in stark contrast to his other endeavors. For instance, his administration spent 18 months crafting Insure Tennessee, a plan supported by a majority of Tennesseans. Though Haslam publicly professed a passion for the cause, he exerted such little effort behind the scenes that he willingly raised the white flag to a vocal minority within his own party after less than three days of a special session. … These lackadaisical efforts on healthcare and transportation are easily contrasted with Haslam’s exhaustive efforts on outsourcing, a solution in search of a problem. Our governor created a new office focused solely on outsourcing and focused the bulk of his energies on an effort to pay private corporations hundreds of millions of dollars to perform jobs that state employees already do well and reliably. …

Democrats Say Nashville Firm Reviewing Benefits Of Outsourcing Is Too Close To Haslam
Source: Chas Sisk, Nashville Public Radio, December 12, 2016

Tennessee Democrats say they’re still not sold on the benefits of potentially outsourcing thousands of state jobs at college campuses, parks and prisons. They’re calling for yet another round of analysis on the proposal, even though two so far have found it could save the state more than $35 million a year. State officials were the first to come up with that estimate for what Tennessee could save from privatizing jobs currently done by public employees. But when questions were raised about their analysis’s validity, Nashville-based KraftCPAs stepped in. And after reviewing the state’s calculations for several weeks, the firm has decided Gov. Bill Haslam’s administration was more or less correct. That doesn’t satisfy state Sen. Lee Harris, D-Memphis. He wants an out-of-state firm brought in to take a third look. He notes that Kraft has done work for Haslam’s campaign and that some Kraft employees have made donations to it — connections, Democrats say, call Kraft’s independence into question. …

Haslam administration: Review confirms outsourcing savings
Source: Associated Press, November 22, 2016

An outside firm hired by Gov. Bill Haslam’s administration agrees that privatizing maintenance work at public colleges and universities could save $35 million per year. Haslam’s outsourcing advisers and consultants have touted the outsourcing plan as a way to save money while protecting the jobs of all currently employed campus maintenance workers who are deemed to be “qualified and productive.” The outside review was conducted by KraftCPAs PLLC.

Outsourcing state services doesn’t save taxpayers money
Source: Randy Stamps, Knoxville News-Sentinel, November 19, 2016

Saving taxpayer money is the main selling point behind every proposal to outsource a state service. But, when analyzed, outsourcing is often found to be more expensive than promised. For example, in January 2012 the state paid Jones Lang LaSalle $1 million to assess the condition and management of state properties. That November, the state expanded JLL’s contract to include procuring outside leases, a job previously handled by state employees. JLL would also receive a 4 percent commission on any leases it procured. By April 2013, funding for the contract had increased from $1 million to $7.6 million. In June 2013, Tennessee signed a $330 million, five-year contract with JLL to outsource the facilities management of all state buildings. In November of 2013, the state comptroller found JLL’s contract “created an organizational conflict of interest whereby Jones Lang LaSalle can profit from its own planning recommendations.” … In 2014, the state signed a $276 million contract with Trousdale County for a 2,400-bed private prison for Corrections Corporation of America. This contract also includes a 90 percent occupancy guarantee for CCA for per diem fees, which means if the private prison doesn’t remain above 90 percent occupied, taxpayers will pay per diem fees for empty beds. The contract also guarantees annual 2.5 percent operating per diem rate increases. In contrast, state employees do not receive guaranteed pay increases. … Tragically, in July, a man committed suicide by jumping off the Tennessee Tower in Downtown Nashville. According to a WSMV report, “Security at the tower falls under the state’s General Services division. They contract with private security companies Walden Security and Allied Barton.” In August, an accident at a Tennessee county fair sent three children plummeting 45 feet to the ground, severely injuring one. The Associated Press reported, “The state relies on private inspectors hired by operators and other states’ regulators to determine whether roller coasters, zip lines and Ferris wheels are safe.” State employees used to handle this work. In conclusion, as taxpayers, we must ask harder questions and demand more oversight on any contracts that outsource a state service. The notion of cost savings from outsourcing is simply no longer credible.

America’s Richest Politician Is Putting Thousands of Jobs at Risk
Source: Donald Cohen, The Huffington Post, October 14, 2016

Donald Trump isn’t the only one who won’t release his tax returns. Tennessee Governor Bill Haslam, whose family owns the Pilot Flying J chain of truck stops, has refused to release his since running and being elected in 2010. It wouldn’t matter so much if Haslam were your run-of-the-mill governor. But he’s the country’s richest politician, with a net worth of $2 billion. … It matters because Haslam has a plan that could plunge thousands of state workers into poverty. Since being elected, he’s slowly handed over management and operation of public buildings to a private company. All state-owned real estate is on the chopping block—from college campuses and prisons to state parks. The company, the Chicago-based Jones Lang LaSalle, is the world’s second largest commercial real estate brokerage. While running for office in 2010, Haslam held a financial stake in the company. He might still be invested but we don’t know for sure—he’s since placed many of his investments in a blind trust. The governor clearly hasn’t read our new report, How privatization increases inequality. …
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Bill passes in Senate that avoids strike of group home workers

Source: Rick Lessard, Fox61, May 5, 2018
 
Senate passed a bill Saturday afternoon that will raise wages non-profit group home workers, which prevented a worker strike that was scheduled for May 7. The bill would provide a $14.75 minimum wage and a 5% increase for workers above $14.75 effective January 1, 2019.  This wage increase will cover 18,000 union and non-union workers who care for the disabled. …

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Without new workers contract, costly strike preparations loom for state
Source: Emillie Munson, CT Post, May 1, 2018
 
The state will commence costly strike preparations on Thursday if the General Assembly does not act in the next 36 hours on a new contract for workers who care for disabled people, House Democrats warned Tuesday. Some 2,400 unionized workers have threatened to strike on May 7, two days before the end of the legislative session. They are pressing for a contract that would impact thousands of employees in privatized homes and day programs for the disabled. Many of these workers have not received raises in years. Strike preparations involve hiring replacement workers and security to work while striking employees are protesting. Each day of the strike might cost the state close to $1 million, said House Speaker Joe Aresimowicz, D-Berlin, on Tuesday.

Connecticut Nonprofits Support Strike of Their Caregiver Workforce
Source: Ruth McCambridge, NonProfit Quarterly, April 30, 2018

Even as news stories proliferated over the weekend on the crisis in the caregiver workforce serving people with disabilities, in Connecticut, 2,400 employees of nine nonprofit agencies voted to authorize a strike that will begin in the early morning of May 7th. Supporting the strike are not just the agencies employing the workers but also the state’s nonprofit alliance (join yours today). … “We’ve reached a crisis of underfunding in the care our state provides people with disabilities and the workers who care for them,” SEIU 1199 spokesperson Jennifer Schneider said. “When privatized group homes and programs are shuttering and workers are forced to work 80 hours a week just to make ends meet, something has to change. …