Category Archives: Insourcing/municipalization

Innovative Plan To Keep Yosemite Clinic Open

Source: Diana Marcum, California Healthline, December 06, 2010

The medical clinic in Yosemite National Park was never your average clinic. For instance, there was that time bears made themselves at home in the lunch room. In January, the clinic will pass another noteworthy milestone: It will become the first medical clinic in a national park to be operated by the U.S. Public Health Service Commissioned Corps. It’s an unusual solution to a problem that threatened to leave the storied tourist draw without a clinic. Tenet — the Dallas-based investor-owned hospital company that’s owned the clinic since 1995 — has been losing money on the facility every year. Doctors Medical Center, a Tenet-owned hospital in Modesto, has been running the clinic as a 24-hour, seven-day-a-week outpatient center. It is leaving when its contract expires Dec. 31. No new takers stepped forward….

…The two agencies — Public Health Service and the National Park Service — will man the clinic together. The health service is providing doctors and nurses, and the park service is providing building maintenance and support staff. Corps doctors and nurses usually serve on American Indian reservations or remote areas where doctors are hard to find (think Dr. Joel Fleischman of the T.V. Show “Northern Exposure”). The doctors and nurses who will work in Yosemite’s clinic will wear uniforms and have military titles.
Public Health Service Commissioned Corps
“Yosemite National Park Selects Operator for Medical Clinic” news release
Socialized medicine comes to Yosemite

Rick Scott’s plan to slash prison spending called a ‘hoax,’ ‘shell game’

Source: Steve Bousquet, Times/Herald, September 23, 2010

TALLAHASSEE — Rick Scott’s plan to curtail state spending and create 700,000 new jobs includes slashing $1 billion from the prison budget by cutting salaries, reducing health care costs and expanding inmate-run vegetable farms….In his campaign literature, Scott proposes to model Florida after Texas by “reducing per-prisoner costs to Texas’ level.” That worries the PBA, because Texas pays a first-year prison guard about $3,000 a year less than Florida’s starting salary of $31,000….Scott’s plan also would require prisons to grow more of their own food for inmates to eat, but prison officials say that would provide minor cost savings. The agency fired two private food service vendors two years ago and now cooks all prison meals in house to save money.
See also:
Prison spending plays major role in debate over projected state budget deficit (Updated)
Source: Travis Pillow, Florida Independent, 12.07.10
Prison dilemma awaits Scott / Goal is to find savings without seeming soft on crime
Source: Lloyd Dunkelberger, Herald-Tribune, December 12, 2010
Scott’s corrections budget calls for more private prisons
Source:Travis Pillow, Florida Independent, 02.08.11

Commentary: Defense Department’s approach to in-sourcing has unintended consequences

Source: By Stan Soloway, Washington Post, Monday, July 19, 2010


The debate over the degree to which federal agencies have hired contractors for work more appropriately performed within the government has become increasingly prominent. It has been further fueled by statutory requirements that agencies consider in-sourcing almost anything they have ever outsourced.

…. The Office of Management and Budget has also directed agencies to conduct meaningful cost analyses before insourcing positions that do not have to be performed by government employees. However, internal documents suggest that the Defense Department is often significantly underestimating the costs of performing work with federal employees because their analyses are limited primarily to immediate wages and benefits, plus a small amount of overhead expense, rather than the entire set of identifiable costs being assumed by the taxpayer.

MassDOT considering more in-house road plowing

Source: By GLEN JOHNSON, The Associated Press (MA)  June 21, 2010, 12:15PM

Transportation officials are examining how much money Massachusetts might save if they have state employees do more highway snow removal instead of the current patchwork of private contractors.

Transportation Secretary Jeffrey Mullan said Monday the $57.5 million the state is preparing to spend this coming winter is ripe for scrutiny because it’s one of his bigger budget line items. And that figure is below historical averages: Massachusetts spent $66 million for plowing last winter and has spent an average of $76 million annually during the past five years.

State Wants Better Food for Inmates

 Source: (KY)  01/21/2010

One Kentucky State Representative has introduced a bill to improve the quality and quantity of the food at all of the state’s prison, but critics say it’s costly and unnecessary. This was the scene last August when inmates rioted at Northpoint Prison near Danville. State Rep. Brent Yonts believes one of the main causes for this uprising was food.

Right now, a private company, Aramark, provides the inmates meals, so he is proposing a bill that would put the state back in control.

Taking It Back / Transitioning from private to municipal waste collection.

Source: John Culbertson, Waste Age, May 1, 2008 12:00 PM,

Conventional Wisdom holds that we are in the midst of a slow but steady march towards privatization of municipal solid waste and recycling collection services. Several sources — most of them industry-sponsored, but also independent organizations like the Los Angeles-based Reason Foundation — have long touted the benefits of privatization, such as higher productivity, flexible compensation programs to motivate labor, dedicated focus on maintaining solid waste fleets and higher utilization of capital assets. But what are the benefits of going in the other direction? Could a city or county justify converting from a contracted collection service to public collection?

How to insource / A blueprint for bringing food service back in-house

Source: Mona Sonnenshein and Carol
Sherman, Modern
, April 20, 2009 – 5:59 am


In October 2006, the chief operating
officer for the University of
California at San Diego Medical Center wanted to evaluate the medical
center’s outsourced food and nutrition services for both quality and financial
improvements. A consultant, who had worked successfully with this senior
administrator before, was hired to evaluate the facility’s current operation,
including the ability of the department to meet current and future needs of the
medical center and assess the possibilities for cost containment and service
modification through changes in the department.

….. Through the transition to
in-house management, approximately $1.6 million was saved from the annual
operating budget, and services were improved after a seamless

Keep Santa Fe Weird

Source: Inside Higher Ed, December 15, 2008

…… Now under threat of closing, the college is in negotiations with a public institution — New Mexico Highlands University — that is considering taking over the college, and a debt that could be as much as $35.3 million. While the potential deal is seen by many as a welcome lifeline, students and faculty say they’re unsure how the uniqueness of Santa Fe might be preserved if the college is placed in state hands.

Contracting for Print and Mail Services

Source: Wisconsin Legislative Audit Bureau, October 2008

……. In fiscal year (FY) 2007-08, DOA spent $20.4 million on print and mail services, including
$1.7 million paid to Spherion for staffing services. The current contract with Spherion will expire on June 30, 2009, and DOA has begun preparations to solicit bids in October or November 2008. Using a cost-benefit model developed by DOA, we estimate that as much as $616,500 could be saved in the five-year period from FY 2009-10 through FY 2013-14 if state staff filled all print and mail positions currently filled by contract staff. However, contract costs will be difficult to estimate until DOA has received vendors’ bids, and the actual cost of adding state staff is difficult to estimate because of the uncertainty of future salary, fringe benefit, and recruiting costs.

The case for insourcing

Source: By ELISE CASTELLI, Federal Times, September 21, 2008

A rare thing happened in January. Sixty-five Navy civilian employees at Puget Sound’s Fleet and Industrial Supply Center in Washington state took over torpedo maintenance work that had previously been done by 85 contractor employees.

The Navy “insourced” the work — as it is called when work is transferred from a contractor to in-house employees — after it calculated it would save 10 percent of the cost, or $3 million over five years, of what it was costing to have BAE Systems do the work.

……….The Army has also insourced work. So has IRS and the Homeland Security Department. Such cases are rare, but if Congress gets its way, there will be plenty more insourcing going on in coming years at the Defense Department and across government.

…… The IRS announced this month it would take back 700 documents management jobs it outsourced last year to a contractor.

…….. In a document obtained by Federal Times, the IRS declared it was canceling the contract and bringing the 700 jobs back in house “in the interest of putting a long-term solution in place and doing so in the most cost effective manner.” The document didn’t say how much the agency would save by reversing its outsourcing decision.