Source: Tomah Journal, January 3, 2006
Ah, the wonders of privatization.
On Dec. 10, locked doors greeted veterans seeking treatment at Veterans Administration clinics in Rice Lake and Hayward. Corporate Wellness & Fitness, the Kentucky company contracted to operate the clinics, cut and ran after just six months in Hayward and three months in Rice Lake. The company said it was losing $26,000 a month and that the VA reneged on promises to guarantee the venture’s profitability. The Rice Lake clinic reopened Dec. 26 with VA personnel, but the Hayward clinic remains closed.
The fiasco raises numerous issues. Business Week magazine reported Corporate Wellness & Fitness “agreed to accept a fixed sum per month instead of having the VA reimburse it dollar for dollar … It quickly felt pressure from the government to spend more on supplies and equipment than it had budgeted and could pay.”
Source: Jon R. Luoma, Mother Jones, November/December 2002
Contamination, riots, rate increases, scandals. From Atlanta to Manila, cities are confronting the true cost of water privatization.
Source: PATRICK MARLEY, Journal Sentinel (WI), Nov. 18, 2005
The computer system that tracks the state’s sales tax receipts – which has yet to work properly – cost more than twice as much as originally budgeted, a newly released review of the project shows. The state Department of Revenue in 2000 agreed to pay contractor American Management Systems Inc. $12.2 million, but the cost swelled to $27.6 million by early this year, the report says.
Source: Appleton Post Crescent, November 22, 2005
The state of Wisconsin has broken the bottom-line rule about awarding contracts: They have to be a good deal. But some of the contracts the state has issued as part of Gov. Jim Doyle’s Accountability, Consolidation and Efficiency Initiative aren’t a good deal because they don’t save the state as much money as they could. The Associated Press found state employees — particularly those in the University of Wisconsin System — who say they can buy products such as office equipment and janitorial supplies cheaper than they’re required to buy them under the state’s mandatory contracts.