Source: Jeffrey A. Beard & Richard S. Ellers, Corrections Today, October 2009 (not online)
The delivery of health care services in the Pennsylvania Department of Corrections evolved from a decentralized system in the 1970s, during which time institutions contracted with separate local vendors, to a system of separate regional vendors in the 1980s and 1990s.
In 2002, the DOC issues a statewide request for proposal. The belief was that "economics of scale" would result in greater savings for DOC.
.....The lessons learned from the previous unsuccessful contract was that vendors would underbid a request for proposal to secure a contract and then try to recoup additional funding later, or they would inflate their initial bid to protect themselves from unpredictable, catastrophic outpatient expenses.


