Alabama Department of
Corrections
September 7, 2007 Birmingham News
The Legislative Contract Review Committee on Thursday delayed
implementation of a $223 million prison health-care contract after an
official with a company that bid $9 million less questioned the process.
The panel also delayed a $3.7 million Medicaid contract to computerize
medical records after lawmakers questioned the company's performance in
other states. The Contract Review Committee reviews state agency
contracts. Committee members can delay the contracts for 45 days but do
not have the power to cancel them. The Department of Corrections, after
taking proposals, selected Correctional Medical Services Inc. of St.
Louis to provide medical care to Alabama's more than 20,000 inmates.
Another company, Wexford Health Sources, had submitted the low bid that
was about $9 million cheaper than Correctional Medical Services'. Rep.
Alvin Holmes, D-Montgomery, and other legislators asked Corrections
Commissioner Richard Allen why the department had not selected the low
bidder. Allen said Correctional Medical Services scored slightly higher
on bid reviews, which take quality of care into account. "I don't know
that Mr. Holmes would go to the cheapest doctor in town," Allen said
after the meeting. Lawmakers also questioned that the prison staff who
reviewed the bids included several former employees of CMS. Allen said
none had worked for the company in at least six years. "I have full
confidence in these people. There was no politics involved in this
selection," Allen said. But Michael Davis, a lawyer representing
Wexford, said company officials wanted to meet with the commissioner
before the contract was finalized. Davis said company officials had
questions about how bidders' scores were determined.
September 5, 2007 Huntsville Times
The state corrections commissioner was
questioned by legislators Wednesday over a $233.73 million contract for
health care for Alabama's nearly 26,000 inmates. Commissioner Richard
Allen is seeking approval of a three-year contract with St. Louis-based
Correctional Medical Services Inc. CMS would take over a contract now
held by Prison Health Services Inc., of Brentwood, Tenn. Sen. Parker
Griffith, D-Huntsville, a retired physician, endorsed the CMS contract,
which would have two potential one-year renewals. "I have a keen
interest in (prisons), particularly the health care," Griffith told the
committee. "We're rapidly moving into the baby boomers going through the
prison system just like we're going through it outside the prison
system." Griffith said health care for convicts is a "major, major cost
factor" for the state, but he added that "we're capping it with this
contract and I think it's well thought out." The committee has the power
to delay the contract for 45 days but cannot stop it from being enacted.
Some members of the Joint Legislative Contract Review Committee
questioned Allen about members of his staff who formerly worked for the
two private companies and were involved in the selection process for
CMS. A third company that submitted a proposal, Pittsburgh-based Wexford
Health Sources, was represented by an attorney who said he will ask for
an explanation of the grading process when the committee meets again
today. Allen acknowledged that Wexford's bid was about $6 million lower
than CMS. "We evaluated the contracts very carefully," said Allen. "All
the bidders were told that price would be 40 percent of the score and
other things - innovations, cost savings, those types of things - would
be scored 60 percent." Allen said Wexford scored third. Rep. Blaine
Galliher, R-Gadsden, said he was concerned that Department of
Corrections employees who formerly worked for CMS and PHS were on the
team that graded proposals submitted by the three companies. But Allen
defended the process, calling prison health care "a very narrow
specialty." "If you look at the resumes of these (DOC) people, they have
worked for several companies, not just this company (CMS)," he said.
"Nobody in our department has worked for this company in the last six or
seven years. They've also worked for PHS. They've also worked for about
a dozen other companies. They go back and forth between the companies
and state service."
Broward County Detention Center, Ft. Lauderdale, Florida
December 10, 2004 Sun-Sentinel
A new health management
firm has taken over the care of the 5,200 inmates in Broward County's
jail system after a dispute between the Sheriff's Office and the
previous contractor over medical costs. Armor
Correctional Health Services began work last week under its five-year,
$127 million contract even though it did not yet have a license to
dispense medicine. Armor replaced Wexford Health Sources, which first
pushed for more money and then suggested cutting services despite the
opening of a new detention center in the past year. The Sheriff's Office
chose Armor over Wexford and two other firms that bid on the contract
even though the Armor had only recently been incorporated. The company's
chief executive officer is Doyle Moore, who previously founded Prison
Health Services -- a longtime player in correctional health care in
South Florida. Col. James Wimberly, who runs the jail system for Jenne,
said the Sheriff's Office decided to put the contract out for bid after
Wexford suggested a 12 percent increase in what it was paid. In the
bidding process, Wexford's proposal was $300,000 less than that of Armor
but would have cut eight positions from the jail system's medical staff.
Florida Department of Corrections
November 21, 2006 Tallahassee Democrat
After making a dramatic decision not to award a $707 million
contract for prison health care, the Florida Department of Corrections
spent its first day Monday managing the job itself. ''We are very
confident that we can do this,'' said DOC Secretary Jim McDonough. ''I
have been tracking it hour by hour and it appears that the transition is
going very well.'' McDonough stunned the private prison-health-care
industry late last week when he announced that the department was
rejecting Tennessee-based Prison Health Services' latest bid to continue
the work. The company's existing contract expired at just after midnight
on Sunday. PHS has a troubled history with the department, one that
began earlier this year when it announced it was pulling out of a
10-year contract it originally signed in 2005 because its $645 million
bid did not anticipate the cost of hospitalizing sick inmates. The
department recently announced that it was fining PHS $696,000 for
failing to meet a series of benchmarks, including keeping legible
medical records and missing deadlines to assign caseworkers and perform
medical evaluations. Regardless, PHS was the department's choice again
last month, after it was allowed to compete in a new round of bidding.
That changed again after Pennsylvania-based rival Wexford Health Sources
Inc. challenged the PHS award, saying that its lowest bid of $689
million should have made it the winner. McDonough said Monday that a new
evaluation by outside experts showed that none of the contractors had
the financial qualifications to complete the contract. ''Therefore,
there were no responsive and responsible bidders,'' McDonough said. PHS
spokesman John Van Mol said the company would have no comment. Wexford
executives could not be reached for comment. As recently as this month,
McDonough praised the effort to hand over the job of treating 16,000
inmates in South Florida to private industry, describing it as a $20
million cost saver for taxpayers. But at the same time, McDonough
ordered his contract managers to begin an intensive review process to
see if the department could perform the work itself. McDonough said the
solution they came up with is a ''hybrid'' form of privatization that
involves issuing 145 smaller contracts and purchasing orders. The
department does not have to hire additional workers to get the job done,
McDonough said. McDonough estimates that there will be a $12 million
additional cost to the department in the first year, but that the
department will save money in the long run. ''I have, in effect, cut out
the middle man,'' McDonough said. ''I think we have come up with a very
cost-effective way of doing it.'' Sen. Dave Aronberg, D-Greenacres, has
been a critic of the privatization effort since it began under
McDonough's predecessor. Aronberg pressured McDonough to impose the
fines on PHS, and says he will be watching the department's performance
under the new scheme. ''This is too important an issue to have a new
policy in place every two weeks,'' Aronberg said.''We are very confident
that we can do this. ..... it appears that the transition is going very
well.''
November 17, 2006 AP
The Department of Corrections announced Friday that it will divide
health services for nearly 18,000 inmates in South Florida prisons among
many providers instead of bidding one comprehensive, multimillion-dollar
contract. The agency has issued about 115 purchase orders and more than
30 non-bid contracts for its new health plan that goes into effect
midnight Monday. A little-used state law provides an exception to
bidding requirements for medical services, but two price quotes still
were obtained for each contract, said department spokeswoman Gretl
Plessinger. The decision was made after a review by independent auditors
caught an error in the state's financial analysis after a second round
of bidding for a comprehensive contract last month. The revised analysis
indicated all bidders failed to met financial responsibility
requirements. In October the agency declared its intent to award a $703
million, 10-year contract to Prison Health Services of Brentwood, Tenn.,
as the only "responsible and responsive bidder" based on the erroneous
financial calculations. The contract award had been subject to
negotiating final terms and resolving another bidder's protest. The
rebidding had been ordered in response to Prison Health Services'
decision to pull out of its current $645 million contract, signed
earlier this year, claiming it was losing money on the deal. "DOC has a
legal and moral obligation to provide appropriate health care, while
ensuring the most efficient use of taxpayer money," Corrections
Secretary James McDonough said in a statement. "The department has taken
all necessary steps to ensure those obligations are met." A spokeswoman
for Prison Health Services' parent, American Service Group Inc.,
declined comment beyond a news release that simply announced the state's
decision and that the company will not provide service past Monday.
McDonough last month also announced he intended to levy fines against
the company for shortcomings under the original contract. Wexford Health
Resources of Pittsburgh, Pa., had challenged the department's intent to
award the rebid contract to Prison Health Services. Wexford submitted
the low bid of $689 million but the department deemed the company was
not financially qualified. Wexford did not immediately respond to a
telephone message seeking comment. McDonough said he is confident
inmates and taxpayers will benefit from the new plan. "This
private-public hybrid is a groundbreaking approach to privatization
efforts that have brought great savings to Florida taxpayers," he said.
November 7, 2006 Tallahassee Democrat
A Pennsylvania-based prison health-care firm filed a formal protest
Monday, disputing the Department of Corrections decision to award a $707
million, 10-year contract to a rival company with a troubled history.
Wexford Health Sources Inc. filed a 10-page protest late in the day,
saying that its lowest bid of $689 million should have given it the
advantage and that the department made mistakes in calculating its
financial strength. A Wexford executive questioned why the department
awarded the bid to Tennessee-based Prison Health Services Inc., even
though the department said Monday that it is fining PHS $696,000 for
problems with its past work. ''The question has to come to mind, how can
PHS be determined to be a responsible bidder?'' Wexford President and
CEO Mark Hale said. Department spokeswoman Gretl Plessinger said the
department received the protest at the end of the business day and would
not be able to comment until after it had time to study the document.
PHS initially won the job in 2005 with a $645 million bid, tens of
millions of dollars lower than Wexford. But PHS abruptly announced it
was pulling out last year. PHS said it dramatically underestimated the
cost of hospitalizing sick inmates and was losing too much money.
However, PHS was invited to compete again when the department put out a
new bid. ''Yes, $696,000 is a lot of money, but this is a $78
million-a-year contract and in terms of the overall contract, it is less
than 1 percent,'' Plessinger said.
July 28, 2006 St Petersburg Times
A federal grand jury in Tampa indicted seven people Thursday on
charges of filing fraudulent income tax returns using inmate identities
and getting back nearly $1-million in illegal tax refunds. Daniel
Goodheart, 36, a former psychiatric counselor for the Okeechobee
Correctional Institution, and Frankie Jackson, 32, a former corrections
officer there, were among those who IRS investigators say retrieved
inmates' names and Social Security numbers from the Florida Department
of Corrections intranet, then used them to prepare false income tax
documents for inmates at nine Florida prisons. They are accused of
working with John Palmer, 46, an inmate at the time, who prosecutors
believe also conspired with four other acquaintances and inmates. In
all, the scheme generated U.S. Treasury checks totaling $902,487 for the
conspirators, according to IRS special agent Norm Meadows. The checks
were processed at several banks throughout the state, including some in
St. Petersburg. Goodheart was employed with the prison system through
Wexford Health Associates, the IRS said.
September 16, 2005 Sun-Sentinel
Florida prison officials are defending their plans to divide an
estimated $70 million annual contract for providing inmate health
services at 13 South Florida prisons into four separate but lucrative
contracts -- a move that has sparked interest from legislators,
lobbyists and vendors. Several South Florida legislators said during a
committee workshop Thursday that one result of the changes may be the
Florida Department of Corrections weakens standards for the quality of
inmate care. State Rep. Jack
Seiler, D-Wilton Manors, said his review of contract paperwork shows
that corrections officials have, without specific legislative
authorization, lowered the guidelines dealing with the size and
experience of staff that a private health care vendor would have to meet
in order to bid on the contracts. "The standards are not as strict
as they were when the contract was set five years ago," Seiler
said. "The result of that is ... all of a sudden [the state] could
end up with a company that is not qualified to do the job." Five
years ago, the state contracted with Wexford Health Sources to provide
medical, pharmaceutical, mental health and dental care for thousands of
inmates in South Florida prisons. Last year, legislators cut that
contract short and ordered that the work be divided among separate
specialized vendors. The Legislature's auditing arm called Wexford's
medical care "problematic" a year ago.
September 15,
2005 St Petersburg Times
Florida's top prison official has gone to concerts and sporting events
with a lobbyist for clients seeking business with prisons. But
Corrections Secretary James Crosby says he paid his own way and that he
and Don Yaeger, a Sports Illustrated writer who also runs a
lobbying firm, do not have a social relationship. A lucrative
contract for inmate health care is on the line, and lawmakers, lobbyists
and vendors are all keenly interested. A House committee that oversees
prison spending will hold a hearing today on a contract for medical,
dental, pharmacy and mental health for 17,000 inmates in
South Florida
prisons for five years. Yaeger has a client who wants a piece of the
action, but others do too. Both Crosby and Yaeger find themselves as
human ammunition in a high-stakes battle between rival vendors. Crosby
acknowledges that he brought his wife to see the rock band Aerosmith,
country singer
George
Strait
, and a rodeo at Yaeger's skybox at the
Leon
County
Civic
Center
. He also says he saw a Florida State-North Carolina State football game
and FSU-Florida baseball game with the lobbyist. Yaeger represents a
Miami
firm, Medical Care Consortium, which is affiliated with Armor
Correctional Health Services, a
Broward
County
firm interested in the
South Florida
prison contract. But Armor says the state's bid requirements are
"unreasonably restrictive," and the firm can't apply for the
work because
Crosby
's staff requires companies to have served a daily inmate population of
10,000 for at least one of the past three years. The health care firm
with the most to lose in the latest vendor battle is Yaeger's main
competitor, Wexford Health Sources, a
Pittsburgh
firm that won the
South Florida
contract in 2001. Wexford is fighting to keep caring for sick prisoners
in
South Florida
, but it has a troubled past with the Corrections Department. The
Legislature's watchdog agency called Wexford's medical care
"problematic" a year ago and warned that without closer
oversight, the state was inviting another federal lawsuit over quality
of care. Things got so bad that the state threatened to impose monetary
damages on Wexford, but a state official monitoring the contract, Larry
Purintun, cited "substantial improvement" in July. By then,
the Legislature had inserted a provision in the new state budget
requiring that the contract be put out to bid next month.
Illinois Department of Corrections
July 20, 2007 Sun Times
The former director of the Illinois Department of Corrections was
indicted Thursday for allegedly taking $50,000 in illegal kickbacks to
hand out state contracts to favored companies, including $20,000 in
bribes from the former undersheriff of Cook County. The former
undersheriff, John Robinson, who left his job under a cloud, had a side
job as a lobbyist for companies such as Addus Health Care of Palatine,
trying to get them state business. He succeeded in getting Addus a
contract providing health-care services in Illinois prisons in part
because he bribed then-state Corrections Director Donald Snyder with
$20,000, according to the indictment. $30,000 in alleged bribes - "Addus
Health Care has not had a relationship with Robinson for several years,
is not accused of any wrongdoing, didn't know the alleged activity was
taking place, and is assisting authorities every step of the way," said
Dave Bayless, a company spokesman. Addus is referred to as "Company A"
in the indictment. Also indicted Thursday was Larry Sims, a lobbyist who
allegedly gave Snyder $30,000 in bribes so state business could go to an
unnamed Pennsylvania health-care company. Snyder, 52, of Downstate
Pittsfield, was director of the state prisons under former Gov. George
Ryan, from 1999 until 2003. Thursday's indictments grew out of the
Operation Safe Road probe of corruption in the Ryan administration.
Robinson, 59, of Barrington Hills, was undersheriff of Cook County from
1991 until 2000. He resigned amid a grand jury probe of him allegedly
using his undersheriff stationery to solicit business for a British
Virgin Islands-based company that ran an alleged investment scam. He was
never charged. Robinson was undersheriff for part of the time he
allegedly passed money -- in increments, totaling $20,000 -- to Snyder.
5 counts of mail fraud - "John is in a proper manner facing his charges.
He will do what is right," Robinson's lawyer, George Collins, said.
Robinson is currently unemployed, Collins said. Sims, 58, of Downstate
Pleasant Plains, was a lobbyist for several vendors, including the
Pennsylvania company. Snyder and Robinson were each charged with five
counts of mail fraud. Sims was charged with one count of perjury for
allegedly lying to the grand jury during the investigation. Attorneys
for Snyder and Sims could not be reached for comment. [Indictment is at
www.usdoj.gov/usao/iln/pr/chicago/2007/pr0719_02.pdf ] [US Attorney
Press Release]
October 26, 2006 Sun Times
Gov. Blagojevich remembers political insider
Stuart Levine spilling a cup of coffee on him during a New York
fund-raising trip that is under federal scrutiny, but insists Levine
spilled nothing about any illegal scheme to trade government business
for campaign cash. "That's ridiculous," Blagojevich said Wednesday.
"Absolutely not. Of course not." The Democratic governor spoke for the
first time in detail about the 2003 trip as supporters of his GOP rival,
state Treasurer Judy Baar Topinka, said an itinerary shows Blagojevich
illegally mixed government and political fund-raising. The itinerary
lists meetings at New York's Harvard Club between Deputy Gov. Bradley
Tusk, top Blagojevich fund-raiser Christopher G. Kelly and
representatives of two companies. Those firms, Maximus Inc. and Wexford
Health Sources, do millions of dollars in state business each year. Each
also has contributed five-figure sums to Blagojevich. Feds probing
trips: The Chicago Sun-Times last month reported that the Oct. 29, 2003,
trip -- plus another to the East Coast later -- are focuses of a federal
pay-to-play probe of state government. "The chief fund-raiser is meeting
with people who are interested in government contracts along with a
high-ranking member of the governor's staff," said Joe Birkett, DuPage
County's state's attorney and GOP candidate for lieutenant governor.
"You're setting the table to exchange your governmental decision-making
in exchange for a political benefit." Blagojevich campaign spokesman
Doug Scofield dismissed the criticism. Kelly and Tusk, he said, never
met with Wexford or Maximus -- despite what the "preliminary draft"
schedule indicates. "Bradley and Chris were not in any meetings
together. I really have no idea why it would be that way on the
schedule," Scofield said. "You have a schedule that looks like it's
inaccurate in a number of ways."
August 25, 2006 The New Mexican
Santa Fe County has interviewed four people who applied to be the new
jail administrator. One high-profile candidate, however, took her name
out of the hat just before interviews were slated to begin Thursday. Ann
Casey, a lobbyist and Illinois jail official embroiled in controversy
over her relationship with state Corrections Secretary Joe Williams, had
applied for the job along with five others. Casey canceled her interview
Thursday and said she no longer wanted to be considered for the job,
according to Assistant County Attorney Carolyn Glick. Casey was in the
news in New Mexico when the state put Williams on unpaid leave and
launched an investigation. Officials looked into his relationship with
the woman, including use of his work cell phone and other expenses after
the Albuquerque Journal reported billing records for his state cell
phone showed 644 calls between the two over five months. Williams
returned to work and is on probation following what a governor's aide
called "a lapse in judgment." Illinois officials also looked into the
matter, but Casey remains in her position of assistant warden of
programs at the Centralia Correctional Center, said department spokesman
Derek Schnapp. Casey was not available for comment.
May 31, 2006 New Mexican
A state prison contractor involved in the investigation of a
relationship between Corrections Secretary Joe Williams and a lobbyist
contributed $10,000 to Gov. Bill Richardson's re-election campaign. The
political-action committee for Aramark -- a Philadelphia-based company
that makes millions of dollars a year to feed New Mexico inmates --
contributed to Richardson's campaign in May 2005, according to
Richardson's most recent campaign-finance report. That was about a year
after Aramark renewed its contract with the state Corrections
Department. Aramark also has been generous to the state Democratic
Party, contributing $10,000 in 2004, and the Democratic Governors
Association, which Richardson chairs. The company contributed a total of
$15,000 to the DGA in 2004 and another $15,000 in 2005, according to
reports filed with the Internal Revenue Service. Aramark provides food
service to more than 475 correctional institutions in North America. The
corporation also has food-service contracts in colleges, hospitals,
convention centers and stadiums. Richardson spokesman Pahl Shipley
referred questions about the campaign donation to Richardson's campaign
manager, Amanda Cooper, who couldn't be reached for comment. The
Governor's Office announced this week that Williams is being put on
administrative leave while the state Personnel Office investigates his
relationship with Ann E. Casey, who registered as a lobbyist for Aramark
and Wexford Health Services, which provides health care to New Mexico
inmates. Casey is an assistant warden at an Illinois prison. A
copyrighted story in the Albuquerque Journal said Williams' state-issued
cell-phone records show 644 calls between Williams and Casey between
Sept. 24, 2005, and Feb. 23. According to that report, Casey was hired
as a consultant by Aramark in 2005, but that contract has since been
terminated. Aramark's $5.4 million contract ends in July. The Secretary
of State Office's Lobbyist Index lists Casey as a lobbyist for Wexford,
though the Journal report quotes a Wexford official saying the company
never hired her. In 2004, a $10,000 contribution to a Richardson
political committee from Wexford's parent company caused a stir and
later was returned to the Pittsburgh company. The Bantry Group made the
contribution to Richardson's Moving America Forward PAC in April 2004.
This was during a bidding process just a month after the Corrections
Department requested proposals for a contract to provide health care and
psychiatric services to inmates. That contract potentially is worth more
than $100 million, The Associated Press reported. In August 2004, a
Richardson spokesman said the money would be returned "to avoid even the
appearance of impropriety."
May 30, 2006 AP
Gov. Bill Richardson has put Corrections Secretary Joe Williams on
unpaid leave while the secretary's recent actions are investigated.
Richardson said the review will focus on Williams' use of a state-issued
cell phone, a state-funded trip that included some personal travel and
his relationship with a lobbyist. "Gov. Richardson wants a thorough
investigation to examine the secretary's actions and determine if
anything improper occurred," said James Jimenez, Richardson's chief of
staff. "The governor sets a very high ethical standard for his
administration and will not tolerate any level of abuse of authority or
public trust." A spokeswoman for the Corrections Department said
Williams was unavailable for comment. State Personnel Director Sandra
Perez will conduct the investigation through her office, Jimenez said.
Williams will be on unpaid leave until June 9, the day Perez's office is
to report to the governor. The Albuquerque Journal reported Sunday that
Williams spent about 91 hours on his state-issued cell phone talking
with Ann Casey, an assistant warden at a state prison in Centralia, Ill.
The calls between the two phones were placed between Sept. 24, 2005, and
Feb. 23, 2006. Casey registered as a lobbyist in 2005 for two companies
that have contracts with New Mexico to provide health care and meals to
prisoners. Williams described his relationship with Casey as a
friendship and said he doesn't give preferential treatment to anybody.
Richardson also is questioning a trip Williams took to Nashville on the
state's dollar. In January, Williams attended a conference of the
American Correctional Association. His travel records show he added a
St. Louis leg to the trip, which he said was personal. A 30-mile drive
from the St. Louis airport would land Williams at an address in O'Falcon,
Ill., which Casey listed on lobbyist registration forms. Records show
Williams wrote a check to his department in January for $266, the cost
of adding the St. Louis trip. While on the trip, Williams and Casey
accepted a dinner invitation from a company that operates a state prison
in Santa Rosa, according to Williams' e-mail records. A billing
statement for a hotel stay during the trip also lists two people in his
party, but Williams would not say who the second person was. Richardson
appointed Williams, a former warden at the Lea County Correctional
Facility in Hobbs and former warden at two state prisons, as corrections
secretary in 2003.
November 24, 2005 State Journal Register
Less than five months after the state government canceled a contract
with Wexford Health Sources to provide health care for most prison
inmates, the company is resuming those duties with a new contract worth
a potential $547 million. The Illinois Department of Healthcare and
Family Services, which handles health-care procurement for most state
agencies, awarded the contract late Wednesday. The agreement will pay
Pittsburgh-based Wexford $97.6 million in the first year and $103.9
million in the second year, said HFS spokeswoman Kathleen Strand. Among
the other bidders on the contract was Peoria-based Health Professionals
Ltd., which the state hired after ending its previous contract with
Wexford in July. HPL had prior agreements with the state to provide
inmate health care at 10 other Illinois prisons, and those remain in
effect, Strand said. The state canceled the earlier contract with
Wexford just before the company's union-represented workers planned to
go on strike. Workers said they authorized the strike because they were
making little progress in contract talks with Wexford. The Department of
Corrections awarded emergency contracts worth an estimated $55 million
to HPL, and agency officials said at the time that the contracts soon
would be put out for long-term bid. The emergency contracts cover the
period from July 5, 2005, to Jan. 31, 2006. Wexford has contributed
about $25,000 to Illinois political campaign funds since 1994, according
to the State Board of Elections' Web site. The largest contribution was
$10,000 to Friends of Blagojevich, the governor's fund, in November
2003.
August 27, 2005
Southern Illinoisan
In July, healthcare workers in Illinois prisons were so unhappy with
Wexford Health Sources Inc., the company that employed them under
contract with the state, they threatened to go on strike. Gov. Rod
Blagojevich stepped in and pulled the contract from Wexford and awarded
it to Health Professionals Limited. But the workers are still unhappy
with Wexford, alleging the company has failed to pay them for
accumulated "paid time off" including vacation and sick days.
Wexford officials said it may be as late as October, but they will
indeed pay what is owed pending receipt of information from HPL and
money owed by the state of Illinois.
August 11,
2005 Pantagraph
In her job as a pharmacy technician at Lincoln Correctional Center,
Kirsten Lolling has doled out pills and prescriptions to prison inmates
for more than 12 years. On Wednesday, Lolling received some good
medicine herself in the form of a 24 percent pay hike and a host of
other improvements in her wage and benefits package. The added cash
comes as part of a union contract ratified Wednesday by nearly 380
privately employed prison health care workers. Overall raises differ at
the 23 prisons affected by the deal. The American Federation of State,
County and Municipal Employees union reports its contract with
Peoria-based Health Professionals Ltd. will result in better retirement
benefits, cheaper health care costs and added benefits for education and
length of service. Faced with the prospect of having inadequate staffing
levels in many of its prisons, the Illinois Department of Corrections
dropped Wexford and its $83 million contract and brought in HPL, which
was already providing health care services at nine other state prisons.
July
7, 2005 Pantagraph
A Pennsylvania-based company may sue the Illinois Department of
Corrections after the agency abruptly canceled its contract to avert a
labor strike. "We are looking at all our options," said
Elaine Gedman, human resources chief of Pittsburgh-based Wexford Health
Sources Inc. "This is totally unprecedented." The
potential lawsuit comes in response to action the state took Sunday as
the clock ticked down on a potential strike by nearly 380 nurses,
pharmacists and other health-care professionals who work in the prison
system but are employed through Wexford. The workers, represented
by the American Federation of State, County and Municipal Employees
Council 31, had threatened to walk off the job Tuesday if their contract
demands were not met. Dozens of workers at prisons in Dwight, Pontiac
and Lincoln are covered by the labor contract. But a strike was
averted late Sunday when the state terminated its lengthy relationship
with Wexford -- worth about $83 million this year -- and hired a second
company to manage health care at the prisons. The affected
workers, meanwhile, remain on the job while AFSCME attempts to negotiate
a new labor agreement with the new contractor, Health Professionals
Limited.
July 5, 2005 State Journal Register
The state has dropped its contract with Wexford Health Sources Inc. to
provide health services at 23 state prisons on the eve of a scheduled
strike by its employees. Department of Corrections spokeswoman Dede
Short confirmed that an agreement had been reached between Corrections
and Health Professionals Limited to take over the Wexford contracts,
which were cancelled Monday. Health Professionals Limited is a private
vendor that currently provides similar health services in nine prisons,
according to representatives of American Federation of State, County and
Municipal Employees Council 31, which represented the Wexford prison
employees. As a result, the strike that had been scheduled to begin at 7
a.m. today, affecting more than 350 Wexford employees at 23 state
prisons, has been put on hold, according to Anders Lindall, public
affairs director for AFSCME Council 31. Negotiations broke off Friday
between Wexford and the union. At the heart of the dispute is the
difference in pay, health and other benefits between Wexford's employees
and state workers, some of whom reportedly make twice as much as private
vendor health employees doing similar jobs. Wexford's workers provided
medical, dental and mental health services at nearly two dozen state
prisons.
June 26, 2005 Lincoln Courier
More than 350 health care workers at Illinois prisons, including those
at Lincoln and Logan correctional centers, will go on strike July 5 if
contract negotiations between their union and their employer, Wexford
Health Sources, fail to produce an agreement.
Wexford has state contracts to provide health care at nearly two dozen
correctional facilities.
The union-represented Wexford workers voted 356-5 this week to authorize
a strike, said Buddy Maupin, regional director for Council 31 of the
American Federation of State, County and Municipal Employees.
For instance, he said, Wexford employees at state prisons are paid
"vastly inferior" wages compared with state employees doing the same
work.
Kirsten Lolling, a pharmacy technician at Lincoln Correctional Center,
said she is paid $14 an hour, despite having 13 years of experience.
State employees doing the same job are paid about twice as much, she
said.
"Philosophically, we don’t think that the state should exploit its
Wexford work force by using a low-wage, low-benefit vendor to save money
on the labor costs," Maupin said.
June 24, 2005
Copley News Service
Frustrated by a lack of progress in contract talks, more than 350
workers who provide health care services to Illinois prison inmates have
been taking strike-authorization votes, the results of which will be
announced today. A contract between AFSCME and Pittsburgh,
Pa.-based Wexford Health Sources Inc. expires at midnight June 30,
AFSCME spokesman Anders Lindall said Thursday. Wexford has state
contracts to provide health-care services at most Illinois prisons.
Negotiations on a new contract started in April, but they have not gone
smoothly, Lindall said. Wexford has proposed an "array of
draconian takeback measures," including reductions in pay and benefits,
he said.
August
18, 2003 Sun Times News
The union representing Illinois’ 15,000 state prison employees is
praising Governor Blagojevich’s approval of legislation that would bar the
privatization of prison commissary services. Illinois law already
prohibits the privatization of all security functions in the state prisons.
AFSCME Council 31 initiated the new measure after former Governor George Ryan
made an aggressive effort to contract out commissary services in the state’s
37 correctional facilities. Ryan contended that no security function was
involved in the commissaries, which sell non-essential goods to inmates at
reduced prices. SB 629 makes explicit the prohibition against
privatization of commissary services. It passed the General Assembly earlier
this year by overwhelming majorities in both houses.
April
28, 2003 Clinton Herald
There's no money in the Illinois budget to staff and operate the Thompson prison
next year but the state is exploring options for using that facility and other
prisons not currently open. One option would be to turn those facilities
into federal prisons. Doing so would require the Illinois Department of
Corrections to first turn over the prisons to private companies to run, and the
private companies would then lease the space to the federal prison system.
April
10, 2003 The Southern Illinois
Union picket lines could begin appearing as early as next week at eight
Illinois Department of Corrections facilities because of stalled contract talks
between health care workers and the private vendor that employs them.
Health care workers have been without a contract since Dec. 31 and have set
Monday as a strike date, said Mark Samuels, public affairs director for the
American Federation of State, County and Municipal Employees, the state's
largest public-service employee union. AFSCME Regional Director Buddy
Maupin said Tuesday that HPL is one of three primary suppliers of health care
services to the state corrections system. Wexford and Addus are the other two
principal contractors. Maupin said HPL's contract proposals are not only
"inferior" to wages and benefits earned by state employees in IDOC who
provide the same services, but they are also below those paid by Wexford and
Addus.
Mississippi
Department of Corrections
January 14, 2008 Clarion Ledger
A health-care company contracting with the Mississippi Department of
Corrections has been lax about providing some inmates with timely
medical treatment among other problems, a legislative oversight group
says. The Joint Legislative Committee on Performance Evaluation and
Expenditure Review also says the piecemeal contract with Wexford Health
Services cost the state $1.1 million more than it would have for the
same company's turnkey model. The department is facing a shortfall of
more than $19 million this year, some of that for overspending in
medical costs, and PEER is recommending the state auditor investigate.
But Corrections Commissioner Chris Epps said the only issue he's had
with Wexford concerns the way the company keeps records. And, he said,
PEER's findings don't take into account the savings the department has
seen in medical costs throughout the years, despite the increasing
number of sick and aging inmates it is holding. Some lawmakers say
they're prepared to give the department a deficit appropriation. "I'm
not trying to beat up on PEER," Epps told The Clarion-Ledger. "All I'm
saying is if you don't deal with this stuff every day, you're not
comparing apples to apples." Issued to lawmakers last month, the PEER
report reviews inmate medical expenses in fiscal year 2007, which began
July 1, 2006 - the same day Wexford's contract with the state began. The
Pittsburgh-based company provides Corrections with only routine care,
with the department handling specialty services and care for inmates
referred to hospitals. A turnkey model was used previously in which
another company provided services to all state institutions except the
private prisons the department contracts with. Epps said the department
switched from that model to keep costs down. "The medical care at the
department is better than I've ever seen it, and I've been here 26
years," Epps said. But the PEER report said the current agreement is
costing the department $1.1 million more than it would with Wexford's
turnkey model, and the department spent $2.8 million more than its
appropriation in fiscal 2007. Spending more money isn't earning the
state better services either, the group says. The report indicates that
during a five-month review period in the same fiscal year, Wexford was
short on staff, and some employees without "proper credentials" provided
medical care to inmates. Also, PEER said many sick-call requests were
not sorted by priority within 24 hours after they were submitted, which
could have delayed treatment. Several deficiencies with the way medical
records are stored were cited in the report as well, including no
separation between physical- and mental-health records, which could
affect the continuum of care. "These are people who have violated laws,
but we are still responsible for their care and that's just the way it
is," said Max Arinder, PEER's executive director. "We need to get these
things remedied, or it could lead to some legal problems."
Oaks Correctional Facility, Eastlake,
Michigan
December 1, 2004 Lundington
Daily News
A former Oaks Correctional Facility physician pleaded guilty to four
counts of tax evasion with a total tax liability of $139,794. Dr. Daniel
Smalley, 56, formerly of Wellston now of Ludington, is scheduled for
sentencing at 1:30 p.m. Feb. 22, 2005 at the Lansing Federal Building.
On June 28, 2004, Smalley was arrested at the Baltimore Washington
International Airport, in Baltimore, Maryland, after returning from
Ghana, West Africa. According to a
complaint filed in June 2004, during the years 1997 through 2002,
Smalley was employed at both the Baraga Correctional Facility, Baraga,
and at the Oaks Correctional Facility, Eastlake, working for several
different companies, including Genesys Integrated Group, Wexford Health
Services, the State of Michigan, and Correctional Medical Services.
In 1996 and 1997, Smalley provided Genesys with what U.S.
attorneys are calling a false W-4 form, claiming to be exempt from all
federal income taxes. In 2002, the IRS submitted a notice of levy to
Correctional Medical Services to collect taxes due and owing from his
wages. Each count of conviction carries a maximum penalty of five years’
imprisonment and a $250,000 fine.
New Mexico Department of Corrections
September 26, 2007 Santa Fe Reporter
Over the last year, whistle-blowers have come forward, auditors have
released findings, legislative committees have convened. All concluded
that Wexford Health Sources Inc., the private company that secured an
exclusive contract in 2004 to provide health care to New Mexico inmates,
cut corners at the cost of prisoners’ well being. Last year, SFR
published an award-winning 15-part series focusing on health care
professionals’ allegations about the care in the prisons [www.sfreporter.com;
“The Wexford files.” ] Although Wexford’s contract expired on June 30,
2007, inmates are now filing handwritten civil suits leveled at Wexford,
the State of New Mexico and its private-prison contractor, the GEO
Group. Richard Vespender, an inmate in GEO Group’s Lea County
Correctional Facility, filed suit in the First Judicial District on July
3, 2007, alleging that Wexford denied him treatment for a back injury he
suffered in 2001 when he slipped on a wet floor at another prison
facility. Vespender, who is representing himself, says doctors had
identified two herniated discs in his lower back that required surgery,
but Wexford would only pay for temporary pain-killers. On Aug, 15,
former Western New Mexico Correctional Facility inmate Johnny Gallegos
filed suit claiming that, in the summer of 2005, Wexford employees
ignored his serious urinary condition. The suit alleges that Gallegos
was treated for constipation, despite regular bowel movements and, after
more than a week of complaints, was finally taken to the hospital after
the prison’s warden discovered him waiting in line at the medical clinic
with his shorts covered in blood. While the plaintiffs have yet to
respond to Gallegos’ complaint, GEO Group and the New Mexico Department
of Corrections have denied culpability in Vespender’s case, and claim,
in their legal response, that they are “without sufficient knowledge or
information” to either admit or deny 32 of Vespender’s allegations. Most
conspicuously, the plaintiffs claim they don’t know enough about
Vespender’s 2006 visits to Dr. Don Apodaca, who at the time was
Wexford’s medical director at the Lea County prison. Apodaca resigned in
November 2006 and previously told SFR: “It came to the point where I
felt uncomfortable with the medical and legal position I was in. There
were individuals who needed health care who weren’t getting it.”
Although NMDOC and GEO now deny sufficient knowledge of both Apodaca’s
diagnosis and that of the specialists at an Albuquerque health clinic,
both were cited in an April 4, 2007 memo from NMDOC denying Vespender’s
final administrative appeal, which was included in Vespender’s case
file. Tia Bland, spokesperson for NMDOC, says this is a moot point: As
of July 1, St. Louis, Mo.-based Correctional Medical Services began
handling prison health care. “If there are inmates who felt that they
were not receiving proper treatment when Wexford was there, there is a
process for them to let us know about that, for them to let the current
vendor know about that and we certainly will address whatever their
concern is now,” she says. Solomon Brown, Gallegos’ attorney, says he’s
interviewed dozens of upset New Mexico inmates, and a new vendor may not
be enough. “In my estimations, there’s nothing but dissatisfaction among
the inmates,” Brown says. “The governor needs to appoint a group to
formally look at it, or an ombudsman to go and talk to these inmates
like I do and meet with them.”
February 7, 2007 The Santa Fe Reporter
At the behest of the Legislative Finance Committee (LFC), two
correctional health experts have launched an extensive audit of the
medical care in New Mexico’s state prisons. SFR has learned that Dr.
Steve Spencer and Dr. B Jaye Anno were hired late last month by the LFC
to evaluate the level of medicine provided to state inmates. Their work
is part of a larger audit the Legislature is conducting of the New
Mexico Corrections Department (NMCD), slated for conclusion this spring.
“We needed medical expertise in our audit, because up until now we
haven’t had any,” Manu Patel, the LFC’s deputy director for audits,
says. “This way, it’s not just us second-guessing the Corrections
Department. We can actually get a sense of what’s working and what
isn’t.” Patel says the contract with Spencer and Anno is worth
approximately $21,000. The health care component to the Corrections
audit follows a six-month investigation by SFR into Wexford Health
Sources, the private company that administers medical care to state
inmates [Cover story, Aug. 9, 2006: “Hard Cell?”]. The investigation led
to a request for the audit by the state Legislature’s Courts,
Corrections and Justice Committee last October [Outtakes, Oct. 25, 2006:
“Medical Test”]. SFR’s series also compelled Gov. Bill Richardson to
terminate the state’s contract with Wexford in December, a process that
will likely take until June, when the prison medical contract is up for
renewal [Outtakes, Dec. 13, 2006: “Wexford Under Fire”]. Regardless of
Wexford’s fate, the LFC is pressing ahead with the audit. “We are
looking at this serving a long-term benefit to the Corrections
Department, so that we can all better evaluate the medical program in
the prisons and its services,” Patel says. Spencer, a former medical
director of NMCD, and Anno, who co-founded the National Commission on
Correctional Health Care, started work on Feb. 5, when they traveled to
Lea County Correctional Facility in Hobbs. “We’re going to look at a
number of things when we travel to the sights,” Spencer says. “We’ll
look at the adequacy of staffing, the appropriateness of care, the
timeliness and use of off-site specialists. We’ll review inmate deaths
and whether Corrections is adequately monitoring the contractor.”
Moreover, the medical audit will involve a review of the contract
between Wexford and the Corrections Department, as well as sifting
through tuberculosis, HIV and other medical testing data. Various
medical personnel will also be interviewed throughout the process,
Spencer says. Inadequate tuberculosis testing, chronic staffing
shortages and a systemic failure to send inmates off-site have been
among the concerns raised to SFR by former and current Wexford employees
[Outtakes, Oct. 18, 2006: “Corrections Concerns”]. In an e-mail, Wexford
Vice President Elaine Gedman said, in part, that Wexford plans to
cooperate with the audit and is confident its outcome will be positive.
She also said Wexford is cooperating with NMCD for a smooth transition.
NMCD spokeswoman Tia Bland tells SFR that Corrections is still working
on a request for proposal, set to go out in March, that will kick off
the agency’s search for a new medical provider. “We’re providing [the
auditors] with whatever they need, and whatever the results are, we’ll
use that information to our advantage in working with the next vendor,”
Bland says. Bland reiterates NMCD’s contention that Wexford violated the
terms of its contract with the state because of staffing problems. She
says Corrections is still analyzing whether Wexford broke other
contractual stipulations. During the mid-1990s, Spencer and Anno were
hired by the Wyoming Department of Corrections to conduct medical audits
of its prisons. Wexford, which administered health care for the Wyoming
DOC, eventually became embroiled in a US Justice Department
investigation regarding prison health care in that state and lost its
contract. Recalls Anno: “There were a number of problems with Wexford’s
operation in Wyoming.”
January 10, 2007 Santa Fe Reporter
For Elizabeth Ocean, the poor medical and psychological care at
Southern New Mexico Correctional Facility (SNMCF) in Las Cruces had
become too much to bear. After three years working as a mental health
counselor there, she quit her job last March. Ocean tells SFR that
inmates reported waiting weeks, even months, for medical and dental
appointments and to receive prescription medications. “The guys came to
me constantly about the medical care,” Ocean says. “They were going and
putting in requests and waiting so long to be seen. A lot of times, they
were being told there was nothing wrong with them.” Wexford Health
Sources, a private, Pennsylvania-based company, has handled health care
in New Mexico’s state prisons since July 2004. On the heels of a
six-month SFR investigative series on Wexford, in which many former and
current Wexford employees came forward, Gov. Bill Richardson told the
New Mexico Corrections Department (NMCD) on Dec. 8 to replace Wexford
[Outtakes, Dec. 13: “Wexford Under Fire”]. NMCD spokeswoman Tia Bland
says NMCD is moving ahead with the termination process and that a
request for proposals will be crafted by March. Bland says NMCD has
identified at least one area—staffing shortages—in which Wexford
violated the terms of its state contract. Wexford Vice President Elaine
Gedman did not return phone or e-mail messages. Ocean says the problems
in the facility where she worked were systemic. Earlier this year, she
says she wrote letters to the US Justice Department and the governor’s
office, alerting them to the health care deficiencies. She also wrote of
four fellow mental health counselors whom Ocean alleges were operating
without state licenses; Ocean also filed a complaint last January with
the New Mexico Counseling and Therapy Practice Board. On May 17, Erma
Sedillo, NMCD’s deputy secretary of operations, wrote Ocean on behalf of
the governor’s office to inform her that NMCD was working to obtain the
counselors’ temporary licenses. Sedillo did not return a phone message,
but spokeswoman Bland confirms a past “licensure issue” at NMCD because
the department was unaware of a recent change in existing state
regulations that now require mental health professionals working in
prisons to obtain a full state counseling license. “When we discovered
the change, we got all of our counselors to obtain full licenses,” Bland
says. As for Ocean, she is out of the prisons, but still connected.
Ocean is married to an inmate and former patient at SNMCF, who is
incarcerated for murder. She says their relationship started after he
was no longer a patient. Ocean adds: “I saw with my own eyes all the
problems, all the injustices at the prison before I ever married him.”
December 13, 2006 Santa Fe Reporter
After two troubled years of administering health care in New
Mexico’s prisons, Wexford Health Sources will lose its
multimillion-dollar contract with the state. Wexford has been the
subject of a five-month investigative series by this paper. Now, SFR has
learned that on Dec. 8, Gov. Bill Richardson ordered the New Mexico
Corrections Department (NCMD) to immediately begin the search for a new
health care provider. “The governor has directed the Corrections
Department to develop and implement immediate and long-term options for
improving health care quality at the state’s correctional facilities,”
Richardson spokesman Gilbert Gallegos says. “Those options are expected
to include sanctions and seeking another provider—which basically means
the Corrections Department will be crafting a request for proposal [RFP]
to solicit a new vendor. They’re working out the terms of the RFP now
and will most likely be terminating the contract with Wexford.”
Wexford’s contract expires in June 2007, Gallegos says. SFR has
repeatedly and exclusively published allegations by current and former
Wexford employees regarding inmate care [Cover story, Aug. 9: “Hard
Cell?”]. Those accounts focused on dangerously low medical staffing
levels at the nine correctional facilities where Wexford operates;
Wexford’s refusal to grant chronically ill inmates critical, off-site
specialty care; and systemic problems in administering prescription
medicine to inmates. Gallegos says the governor learned about the
problems with Wexford through SFR’s stories. “The governor had been
concerned about the quality of care delivered in the correctional
facilities and directed the Corrections Department to increase oversight
of Wexford,” Gallegos says. “Corrections was doing that, but it appeared
that many of those deficiencies were not being corrected.” Wexford,
which also administers health care in facilities run by the New Mexico
Children, Youth and Families Department (CYFD), will lose those
operations as well, Gallegos says. Wexford began working in New Mexico
in July 2004, after signing a $27 million contract with NMCD. The
Pittsburgh-based company has also lost contracts in Wyoming and Florida
because of similar concerns over health care. SFR also learned this week
that Dr. Phillip Breen, Wexford’s regional medical director in New
Mexico, has resigned, effective Dec. 31. In addition, a dentist at a
state prison in Hobbs tells SFR that facility is so understaffed that
inmates sometimes wait up to six weeks to receive important dental care.
Dr. Ray Puckett, who has been working as a part-time dentist at Lea
County Correctional Facility (LCCF) in Hobbs for approximately one year,
alleges that some inmates are suffering because the backlog to receive
dental treatment is so massive. “I’ve heard about inmates pulling their
own teeth after months and months. I’ve heard about inmates saying, ‘I
just can’t stand it anymore,’” he says. Puckett says Wexford should have
hired a full-time dentist at LCCF because so many inmates require
medical attention to take care of abscesses, cavities, tooth extractions
and other painful dental problems. Puckett works at the facility only
one day a week, during which he typically sees up to 16 patients. He
says that Wexford also has another dentist who will occasionally work
one day a week at the facility. “What we have now is a poorly run
operation. It’s grossly understaffed and disorganized. And it ends up
being unfortunate for the inmates,” Puckett says. Wexford Vice President
Elaine Gedman did not respond to e-mails and phone calls from SFR.
Corrections spokeswoman Tia Bland says NMCD is not aware of a backlog of
dental patients at LCCF, but will look into it. She adds that Wexford is
only required to have a dentist at LCCF for two days a week. With regard
to the governor’s action against Wexford, Bland says: “It’s a fact.
Wexford has not met its contractual obligations to the Department, and
that’s something we can’t ignore. We have to do something about it. We
will be putting a plan in place.” In the coming year, both Wexford and
NMCD are slated for an extensive audit by the Legislative Finance
Committee. The audit was the result of a hearing on Wexford by the
Legislature’s Courts, Corrections and Justice Committee in October. The
hearings also were held in response to reports in this paper [Outtakes,
Oct. 25: “Medical Test”]. It’s now unclear whether the audit will still
take place. As for Puckett, he has considered leaving his post because
of what’s happening at LCCF. A veteran of correctional health care, he
also worked for Wexford’s predecessors, Addus HealthCare and
Correctional Medical Services. In his estimation, both companies, which
operate to make a profit like Wexford, cared more about the inmates’
physical well-being and were willing to sacrifice dollars to ensure that
medical problems were treated expeditiously. Says Puckett: “It is my
sense that Wexford doesn’t care what sort of facility they run.
Everything is run on a bare-bones budget. They’re in it to make money.”
Not anymore. When asked whether there was any chance at all that Wexford
could remain in its current capacity at NMCD or CYFD, Richardson
spokesman Gallegos responded: “They’re done. The governor’s intention is
to replace Wexford with a new company. We expect to have a new provider
in a reasonable amount of time.”
November 28, 2006 Santa Fe Reporter
In the latest setback for Wexford Health Sources, a former employee
has slapped the prison health care company with a civil lawsuit alleging
racial discrimination. The suit, filed Oct. 25 in US District Court in
Albuquerque, alleges that former health services administrator Don
Douglas was fired by Wexford last October because he is black. Moreover,
the suit alleges that sick and injured inmates at Lea County
Correctional Facility in Hobbs, where Douglas worked, received poor
treatment and that the facility lacked critical medical staff. Wexford,
which administers health care in New Mexico’s prisons, has been the
subject of a four-month SFR investigation [Cover story, Aug. 9: “Hard
Cell?”]. As a result, the Courts, Corrections and Justice Committee held
a hearing last month, and the Legislative Finance Committee is slated to
audit Wexford and the New Mexico Corrections Department [Outtakes, Nov.
8: “Prison Audit Ahead”]. The allegations in Douglas’ lawsuit echo many
of the concerns from employees who have talked to SFR. Specifically, it
charges that even though Douglas alerted a Wexford corporate
administrator about medical and staffing problems, the company did not
respond. Instead, according to the lawsuit, Douglas’ job was audited and
he was found negligent, despite no prior problems and a record of
exemplary job evaluations. On Oct. 10, 2005, Douglas was fired and
replaced by a white woman, the lawsuit says. “Wexford did not provide
critical health care in a timely manner, and I called attention to
that,” Douglas tells SFR. “Inmates have a civil right as incarcerated
American citizens to be afforded adequate health care. But that service
is not being provided, and Wexford is neglecting inmates.” Douglas began
working at Wexford in July 2004, but also worked for its predecessor,
Addus. Shortly after his firing, Douglas filed a complaint with the US
Equal Employment Opportunity Commission (EEOC). A June 5 letter from the
EEOC’s Albuquerque office says the agency found reasonable cause to
believe Douglas “was terminated because of his race.” When queried by
SFR, Wexford Vice President Elaine Gedman wrote in a Nov. 27 e-mail that
Wexford is withholding comment until the forthcoming audit is complete
and referred to 14 prior successful audits of Wexford. Corrections
spokeswoman Tia Bland also would not comment on the lawsuit and noted
that NMCD does not oversee Wexford personnel matters. Says Deshonda
Charles Tackett, Douglas’ lawyer: “This is an important case. Mr.
Douglas should not have to suffer racial discrimination in an effort to
provide inmates with proper health care.”
November 22, 2006 Santa Fe Reporter
The medical director of a state prison in Hobbs has stepped down
from his post less than a month after a legislative committee requested
an audit of the corrections health care in the state. Dr. Don Apodaca,
medical director of Lea County Correctional Facility (LCCF), turned in
his resignation on Nov. 6 due to concerns that inmates there are not
receiving sufficient access to health care. According to Apodaca, sick
inmates are routinely denied off-site visits to medical specialists and
sometimes have to wait months to receive critical prescription drugs.
Apodaca blames the policies of Wexford Health Sources, the private
company that contracts with the state to provide medicine in New
Mexico’s prisons, for these alleged problems. Wexford has been the
subject of a four-month SFR investigation, during which a growing number
of former and current employees have contended that Wexford is more
concerned with saving money than providing adequate health care, and
that inmates suffer as a result. On Oct. 24, the Legislative Finance
Committee (LFC) tentatively approved an audit that will assess Wexford’s
contract with the New Mexico Corrections Department (NMCD) and also
evaluate the quality of health care rendered to inmates [Outtakes, Nov.
8: “Prison Audit Ahead”]. LCCF’s medical director since January 2006,
Apodaca is one of the highest-ranking ex-Wexford employees to come
forward thus far. His allegations of Wexford’s denials of off-site care
and the delays in obtaining prescription drugs echo those raised by
other former and current employees during the course of reporting for
this series [Cover story, Aug. 9: “Hard Cell?”]. Specifically, Apodaca
says he personally evaluated inmates who needed off-site, specialty
care, but that Wexford consistently denied his referrals. Apodaca cites
the cases of an inmate who needed an MRI, another inmate who suffered
from a hernia and a third inmate who had a cartilage tear in his knee as
instances in which inmates were denied off-site care for significant
periods of time against his recommendations. When inmates are actually
cleared for off-site care in Albuquerque, they are transported in full
shackles without access to a bathroom for the six- to seven-hour trip,
Apodaca says. “Inmates told me they aren’t allowed to go to the bathroom
and ended up soiling themselves,” he says. “The trip is so bad they end
up refusing to go even when we get the off-site visits approved.” When
it comes to prescription drugs, there also are significant delays,
Apodaca says. Inmates sometimes wait weeks or even months for medicine
used for heart and blood pressure conditions, even though Apodaca says
he would write orders for those medicines repeatedly. “Wexford was not
providing timely treatment and diagnoses of inmates,” he says. “There
were tragic cases where patients slipped through the cracks, were not
seen for inordinately long times and suffered serious or fatal
consequences.” Apodaca says he began documenting the medical problems at
the facility in March. After detailing in writing the cases of 40 to 50
patients whom he felt had not received proper clinical care, Apodaca
says he alerted Dr. Phillip Breen, Wexford’s regional medical director,
and Cliff Phillips, Wexford’s regional health services administrator,
through memos, e-mails and phone calls. In addition, Apodaca says he
alerted Wexford’s corporate office in Pittsburgh. Neither Breen nor
Phillips returned phone messages left by SFR. Apodaca says he also
informed Devendra Singh, NMCD’s quality assurance manager for health
services. According to Apodaca, Singh assured him that he would require
Wexford to look into the matter, but Apodaca says he never heard a final
response. “Wexford was simply not receptive to any of the information I
was sending them, and I became exasperated,” he says. “It came to the
point where I felt uncomfortable with the medical and legal position I
was in. There were individuals who needed health care who weren’t
getting it.” Singh referred all questions to NMCD spokeswoman Tia Bland;
Bland responded to SFR in a Nov. 20 e-mail: “If Don Apodaca has
information involving specific incidents, we will be happy to look into
the situation. Otherwise, we will wait for the LFC’s audit results,
review them and take it from there.” Wexford Vice President Elaine
Gedman would not comment specifically on Apodaca’s allegations. In a
Nov. 20 e-mail to SFR, she wrote that Wexford will cooperate with the
Legislature’s audit and is confident the outcome will be similar to the
14 independent audits performed since May 2005 by national correctional
organizations. “Wexford is proud of the service we have provided to the
Corrections Department as documented in these independent audits and
looks forward to continuing to provide high quality health care services
in New Mexico,” Gedman writes. Members of the Legislature’s Courts,
Corrections and Justice Committee, which requested the forthcoming
audit, toured LCCF on Oct. 19 and were told by both Wexford and NMCD
officials that there were no health care problems at the facility. On
the same tour, however, committee members heard firsthand accounts from
inmates who complained they couldn’t get treatment when they became sick
[Outtakes, Oct. 25: “Medical Test”]. That visit, along with Apodaca’s
accounts, calls into question Wexford’s and NMCD’s accounts, State Sen.
Cisco McSorley, D-Bernalillo, says. “We were told on our tour that
nothing was wrong. And now to hear that there is a claim that Wexford
and the Corrections Department might have known about this makes it seem
like this information was knowingly covered up,” McSorley, co-chairman
of the committee, says. “We can’t trust what’s being told to us. The
situation may require independent oversight far beyond what we have.
This should be the biggest story in the state right now.”
November 8, 2006 Santa Fe Reporter
The New Mexico State Legislature is one step closer to an audit of
Wexford Health Sources, the private company that administers health care
in New Mexico’s prisons. On Oct. 24, the Legislative Finance Committee (LFC)
tentatively approved the audit, which will evaluate Wexford’s contract
with the New Mexico Corrections Department (NMCD) and also assess the
quality of health care administered to inmates. The request for a review
of Wexford originated with the state Legislature’s Courts, Corrections
and Justice Committee, which voted unanimously on Oct. 20 to recommend
the audit after a hearing on prison health care in Hobbs [Outtakes, Oct.
25: “Medical Test”]. A subsequent Oct. 30 letter sent to the LFC by
committee co-chairmen Rep. Joseph Cervantes, D-Doña Ana, and Sen. Cisco
McSorley, D-Bernalillo, refers to “serious complaints raised by present
and former employees” of Wexford. The letter cites this newspaper’s
reportage of the situation and notes that on a recent tour of Lea County
Correctional Facility in Hobbs, “committee members heard numerous
concerns from inmates about medical problems not being addressed.” It
also refers to confidential statements Wexford employees provided to the
committee that were then turned over to the LFC. The decision to examine
Wexford and NMCD comes on the coattails of months of reports that state
inmates are suffering behind bars due to inadequate medical services,
documented in an ongoing, investigative series by SFR. Over the past
three months, former and current employees have alleged staffing
shortages as well as problems with the dispensation of prescription
drugs and the amount of time sick inmates are forced to wait before
receiving urgent care [Cover story, Aug. 9: “Hard Cell?”]. The timing,
Manu Patel, the LFC’s deputy director for audits, says, is ideal,
because the LFC already planned to initiate a comprehensive audit of
NMCD, the first in recent history. Regarding the medical component of
the audit, Patel says: “We will be looking at how cost-effective Wexford
has been. Also, we will be looking at the quality of care, how long
inmates have to wait to receive care and what [Wexford’s] services are
like.” Patel says the LFC plans to contract with medical professionals
to help evaluate inmates’ care. As per a request from the Courts,
Corrections and Justice Committee, current Wexford employees will be
given a chance to participate in the audit anonymously. The audit’s
specifics require final approval from the LFC in December; the committee
will likely take up to six months to generate a report, according to
Patel. In a Nov. 6 e-mail to SFR, Wexford Vice President Elaine Gedman
cites 14 successful, independent audits performed of Wexford in New
Mexico since May 2005. “Wexford is proud of the service we have provided
to the Corrections Department as documented in these independent audits
and looks forward to continuing high quality health care services in New
Mexico,” Gedman writes. NMCD spokeswoman Tia Bland echoes Gedman: “We
welcome the audit and plan on cooperating any way we can,” she says.
Meanwhile, former employees continue to come forward. Kathryn Hamilton,
an ex-NMCD mental health counselor, says she worked alongside Wexford
staff at the Pen for two months, shortly after the company took the
reins in New Mexico in July 2004. Hamilton alleges that mentally ill
inmates were cut off psychotropic medicine for cheaper, less effective
drugs and that inmates waited too long to have prescriptions renewed and
suffered severe behavioral withdrawals as a result. Hamilton, who had
worked at the Pen since April 2002, says she encountered the same sorts
of problems under Addus, Wexford’s predecessor, but quit shortly after
Wexford’s takeover because the situation wasn’t improving. “They would
stop meds, give inmates the wrong meds or refuse to purchase meds that
were not on their formulary, even if they were prescribed by a doctor,”
Hamilton says. “I felt angry, sometimes helpless, although I always
tried to speak with administrators to help the inmates.” Hamilton
married a state inmate by proxy last month, after continuing a
correspondence with him following her tenure at the Pen. Hamilton says
she did not serve as a counselor to the inmate, Anthony Hamilton, but
met him after helping conduct a series of mental health evaluations.
Hamilton has been a licensed master social worker under her maiden name
since 2000 (according to the New Mexico Board of Social Work Examiners).
She emphasizes that her relationship with her husband did not begin
until after she left the Corrections Department. According to Hamilton,
her husband, still incarcerated at the Pen for aggravated assault,
recently contracted methicillin-resistant staphylococcus aureus (MRSA),
a serious staph infection. In a previous story, four current Wexford
employees specifically mentioned MRSA as a concern to SFR because they
allege Wexford does not supply proper protective equipment for staff
treating infectious diseases like MRSA [Outtakes, Oct. 18: “Corrections
Concerns”]. Wexford Vice President Gedman did not address Hamilton’s
claims when queried by SFR. Corrections spokeswoman Bland also says she
can’t comment on Hamilton’s allegations because she had not spoken with
Hamilton’s supervisor at the time of her employment. Says Hamilton: “I
initially called the newspaper as the concerned wife of an inmate, not
as a former therapist. With all the stories the Reporter has done, I
wanted to come forward with what I had seen at the Pen.”
October 25, 2006 Santa Fe Reporter
Following months of reports that state inmates are suffering behind
bars due to deficient medical services, a state legislative committee
has requested a special audit of health care in New Mexico’s state
prisons. During an Oct. 20 hearing at New Mexico Junior College in
Hobbs, members of the Courts, Corrections and Justice Committee voted
unanimously to ask for the audit, which will focus on Wexford. Last
week’s hearing resulted in a requested audit of New Mexico’s prison
health care. (Photo by Dan Frosch.). Health Sources, the private company
that contracts with the New Mexico Corrections Department (NMCD). The
company’s operation in New Mexico has been the subject of a three-month
investigative series by SFR, during which former and current Wexford
employees have come forward with allegations of problematic health
services for inmates [Cover Story, Aug. 9: “Hard Cell?”]. As a result of
the series, the Courts, Corrections and Justice Committee decided to
address the issue during a regularly scheduled hearing in Hobbs
[Outtakes, Sept. 13: “Checkup”]. Norbert Sanchez, a nurse suspended by
Wexford in September after an alleged dispute with health
administrators, spoke at the hearing about problems he witnessed at
Central New Mexico Correctional Facility in Los Lunas. Sanchez recalled
witnessing a wheelchair-bound inmate who sat in his own feces for hours
and a sick inmate who missed critical doses of medicine for congestive
heart failure. Sanchez also expressed concerns that echo those raised
previously to SFR by other former and current Wexford staff: a systemic
lack of medical supplies, failure to properly dole out prescription
drugs and reluctance to send sick inmates off-site for specialized
treatment. Though he was the only former Wexford employee in attendance,
Sanchez referred legislators to a packet he’d disseminated with
testimony from current Wexford employees. Those employees feared
retaliation if they came forward, Sanchez said. ACLU New Mexico staff
attorney George Bach testified that his organization has been hearing
similar concerns from Wexford employees and that many are, indeed,
afraid to go public. “These employees are so passionate about this issue
that if you called them to testify, I’m certain they would do it,” Bach
said. Both NMCD and Wexford refuted Sanchez’ and Bach’s allegations.
Devendra Singh, NMCD’s quality assurance manager for health services,
hashed through the nationally approved correctional health care
standards to which he said the Corrections Department adheres. He also
pointed to the strict auditing process he said NMCD uses to monitor
Wexford. “We go for auditing for every inch of every aspect of care,”
Singh said. Wexford President and CEO Mark Hale said his
Pennsylvania-based company is subject to more stringent oversight in New
Mexico than in any other state where it operates. “If inmates need
health care, they get it,” Hale, who categorized the attacks on Wexford
as deriving from disgruntled ex-employees, said. But Singh’s and Hale’s
assurances were not enough for the legislators on hand, who peppered the
two with questions. At one point, State Rep. Peter Wirth, D-Santa Fe,
referred to a recent SFR story in which a current Wexford employee at
Central decried treatment of inmates as inhumane and noted that never
before had the employee seen such deficiencies in health care [Outtakes,
Oct. 18: “Corrections Concerns”]. “That’s pretty darn scary to me,”
Wirth said of the allegation. Committee co-chairman and State Rep.
Joseph Cervantes, D-Doña Ana, questioned Singh’s assertion that medical
complaints from inmates are rare and noted that on a tour of Lea County
Correctional Facility the previous night, legislators had heard numerous
inmate concerns about medical problems. Co-chairman Sen. Cisco McSorley,
D-Bernalillo, said on the same tour he’d seen an inmate suffering from a
visible cystic infection. The cyst should have easily been identified
through only a “cursory” medical evaluation, McSorley said. Corrections
Secretary Joe Williams said his agency welcomes a special audit of
health care in the prisons. Legislators agreed that such an audit, under
the aegis of the Legislative Finance Committee (LFC), should be
conducted by an independent third party and include accounts from
current Wexford employees who could remain anonymous. LFC Chairman Lucky
Varela, D-Santa Fe, says he has not yet received an official request
from the Courts, Corrections and Justice Committee, but will be keeping
an eye out. “We will seriously consider looking at the Corrections
component to see what type of health care and what type of contracts are
being approved by the Corrections Department,” Varela says. Indeed, for
Peter Wirth, the logical next step is an audit that examines Wexford’s
services and NMCD’s oversight and that allows current employees to speak
freely. Says Wirth: “We really need to hear more from these folks.
Obviously, we’ve begun a dialogue here, and we don’t want to
short-change it.”
October 18, 2006 Santa Fe Reporter
Current prison health workers say they fear retaliation if they
speak out. Just days before state legislators convene a hearing on
correctional health care in New Mexico, a group of medical employees in
the state prison system have come to SFR with allegations about how
inmates are treated. All four requested anonymity because they say they
fear retaliation from Wexford Health Sources—the private company that
administers health care in the prisons—if their identities are revealed.
The employees currently work at Central New Mexico Correctional
Facility. They allege, among other things, that chronically ill inmates
are forced to lie in their own feces for hours, are taken off vital
medicine to save money and often wait months before receiving treatment
for urgent medical conditions. Moreover, the employees say conditions at
the facility are unsanitary. “In my entire career, I’ve never seen this
sort of stuff happening,” one employee says. “These inmates are not
being treated humanely. They don’t live in sanitary conditions. They
live in pain.” Wexford Vice President Elaine Gedman denies all the
employees’ allegations in an e-mail response to SFR. Corrections
spokeswoman Tia Bland says the department is unaware of these
allegations and that “none of these issues have surfaced during our
regular auditing process.” The employees’ allegations come on the heels
of a series of stories by SFR, in which several former Wexford employees
have publicly come forward with similar charges [Cover Story, Aug. 9:
“Hard Cell?”]. As a result of the stories, the state Legislature’s
Courts, Corrections and Justice Committee will hold a hearing on Oct. 20
in Hobbs to discuss the matter [Outtakes, Sept. 13: “Checkup”]. Wexford
and the New Mexico Corrections Department (NMCD), which oversees the
Pennsylvania-based company, have categorically denied charges that
inmates are being denied proper health care. These latest allegations
are the first to come from current employees of Wexford. The employees
describe an environment where medical staff must purchase their own
wipes for incontinent patients because they say Wexford administrators
say there’s no money for supplies. They say there’s a shortage of oxygen
tanks and nebulizer machines (for asthma patients) and also scant
protective equipment for those staff treating infectious diseases.
Gedman says, “Wexford is unaware of any shortage in medical supplies.
Extra oxygen bottles and nebulizers are always on hand and ready for any
emergency use. The oxygen bottles are inventoried daily as part of our
emergency response requirement.” The employees also allege that
chronically ill inmates sometimes wait what they say is too long to be
taken off-site for specialty care. Gedman says this also is false and
that Wexford “strongly encourages all of our providers to refer patients
for necessary evaluation and treatment, off-site when necessary, as soon
as problems are identified that need specialty referral.” All four
employees say their complaints to Wexford administrators about the lack
of supplies and treatment of inmates have been ignored, and all believe
coming forward publicly will cost them their jobs. Gedman says this
concern is unfounded because “Wexford encourages an open-door policy for
all employees to bring issues to the attention of management so that
they can be investigated and acted upon as appropriate.” Bland says
Corrections staff are “visible and accessible in the prisons. If any of
Wexford’s staff would like to speak with us concerning these
allegations, we welcome the information and will certainly look into the
matter.” As for the legislative hearing, State Rep. Joseph Cervantes, R-Doña
Ana, co-chairman of the Courts, Corrections and Justice Committee, says
he hopes some of these Wexford critics will show up in Hobbs. And he
says further hearings are a possibility. “I hope there is a full airing
of the issues. I would like to learn that the Corrections Department is
working to resolve all of this, but if they haven’t, I expect to make
deadlines for them so we can expect adequate progress,” Cervantes says.
“We’d still like to protect the anonymity and bring to light any
allegations and complaints.” Cervantes also says he wants to introduce
legislation during the next session to protect whistle-blowers. Ken
Kopczynski, executive director of the Private Corrections Institute
watchdog group in Florida, says the Legislature must do everything it
can to safeguard current Wexford employees against retaliation. “The
Legislature is the ultimate authority, and they need to put pressure on
the Corrections Department to find out what the hell is going on. They
also need to protect these employees so they can come forward and
testify about their specific experiences,” Kopczynski says. “And if
there are allegations of civil rights abuse, which is what it sounds
like, then the Justice Department needs to come in.”
September 13, 2006 Santa Fe Reporter
Concerns about prison health care reported exclusively by the Santa
Fe Reporter will be discussed by a legislative committee next month. The
Courts, Corrections and Justice Committee will gather in Hobbs on Oct.
19 and 20 for a regularly scheduled hearing and discuss, among other
items, the health care provided to state inmates by Wexford Health
Sources. Wexford, a private, Pennsylvania-based company, has come under
fire from ex-employees who allege that inmates receive dangerously
substandard health care [Cover Story, Aug. 9: “Hard Cell?”]. State Rep.
Joseph Cervantes, D-Doña Ana, co-chairman of the committee, says those
concerns prompted the Legislature to take action. “The issues [SFR] has
raised have not come before our committee recently. Inevitably, you get
a perception that the management wants you to see, but we want to go
beyond that,” Cervantes says. Cervantes expects representatives from
Wexford and the New Mexico Corrections Department (NMCD) to answer
questions at the meetings. He also encouraged all those who have
concerns about Wexford’s health care in the prisons to come forward. “We
need these individuals to not only participate in the public portion of
the meetings but consider presenting evidence and testimony to the
committee,” Cervantes says. State Sen. Cisco McSorley, D-Bernalillo,
co-chairman of the committee, echoes his counterpart’s sentiment. “With
the increasing outcry of health care in the prisons, Joe and I decided
this was an issue that needs to be discussed,” McSorley says. Meanwhile,
SFR recently obtained an Aug. 29 memo from Wexford that directs staff
not to speak with this paper. The memo is from J Chavez, identified as
director of nursing at Central New Mexico Correctional Facility in Los
Lunas. “It is important that you either contact the Pittsburgh office or
myself if this reporter contacts you,” the memo states. “Please keep in
mind that all of you have read and signed the business code of conduct…”
The memo also cites the company’s media relations policy, which
prohibits employees from speaking with the news media on matters
relating to Wexford.
August 30, 2006 Santa Fe Reporter
A Santa Fe dentist and his assistant say they quit their jobs at the
Penitentiary of New Mexico in 2004 because of concerns that state
inmates were not receiving adequate dental care. Dr. Norton Bicoll and
Sharon Daily left their employment at Wexford Health Sources, which
handles health care in nine New Mexico correctional facilities, because
the company ordered them to cut their hours for inmates in half, they
say. Bicoll and Daily’s problems with Wexford follow a number of serious
allegations levied by six ex-Wexford employees that also question the
level of health care inmates are receiving [Cover story, Aug. 9: “Hard
Cell?”]. Last week, SFR also reported that two Albuquerque psychiatrists
have sued Lovelace Health Systems for firing them after they refused to
participate in a proposed contract with Wexford. The contract would have
called for the psychiatrists to provide substandard treatment to state
inmates, the lawsuit alleges [Outtakes, Aug. 23: “Unhealthy Proposal”].
These latest assertions about Wexford appear to be part of a growing
chorus of criticism of the company and its treatment of inmates. Wexford
Vice President Elaine Gedman, who has responded previously to questions
regarding the company, did not respond to repeated requests for comment
for this story. But Bicoll and Daily’s issues with Wexford relate to the
company’s staffing shortages in New Mexico, one of the company’s most
pervasive problems, according to ex-employees. While both NMCD and
Wexford have consistently played down such shortages, according to
Wexford’s own Web site, there are currently 47 vacancies for medical
personnel in New Mexico. That number comprises close to half of the 117
total positions Wexford, the nation’s third largest private correctional
health care company, is currently advertising for. Such vacancies not
only include a range of nursing positions but also critical, high
ranking administrative posts. According to the Web site, Wexford is
looking to hire a director of nursing and medical director at the New
Mexico Women’s Correctional Facility in Grants. The medical director
position is also open at Southern New Mexico Correctional Facility in
Las Cruces and Lea County Correctional Facility in Hobbs. The
Penitentiary of New Mexico needs a director of nursing. Ken Kopczynski,
executive director of the Private Corrections Institute watchdog group
in Florida, says charges of compromised prison health care in New Mexico
warrant federal involvement. “It would be good to get the Department of
Justice involved if there are allegations of lack of care on behalf of
the inmates,” he says. “The New Mexico Corrections Department and the
Legislature can’t hide their heads in the sand and say they didn’t know
about these problems if there’s ever a lawsuit. The inmates are
ultimately the responsibility of the state, and you can’t contract that
away.”
August 25, 2006 The New Mexican
Santa Fe County has interviewed four people who applied to be the new
jail administrator. One high-profile candidate, however, took her name
out of the hat just before interviews were slated to begin Thursday. Ann
Casey, a lobbyist and Illinois jail official embroiled in controversy
over her relationship with state Corrections Secretary Joe Williams, had
applied for the job along with five others. Casey canceled her interview
Thursday and said she no longer wanted to be considered for the job,
according to Assistant County Attorney Carolyn Glick. Casey was in the
news in New Mexico when the state put Williams on unpaid leave and
launched an investigation. Officials looked into his relationship with
the woman, including use of his work cell phone and other expenses after
the Albuquerque Journal reported billing records for his state cell
phone showed 644 calls between the two over five months. Williams
returned to work and is on probation following what a governor's aide
called "a lapse in judgment." Illinois officials also looked into the
matter, but Casey remains in her position of assistant warden of
programs at the Centralia Correctional Center, said department spokesman
Derek Schnapp. Casey was not available for comment.
August 14, 2006 In These Times
While New Mexico’s landscape may make the state the Land of
Enchantment, its rapidly growing rates of incarceration have been
utterly disenchanting. What’s worse, New Mexico is at the top of the
nation’s list for privatizing prisons; nearly one-half of the state’s
prisons and jails are run by corporations. Supposedly, states turn to
private companies to cope better with chronic overcrowding and for
low-cost management. However, a closer look suggests a different
rationale. A recent report from the Montana-based Institute on Money in
State Politics reveals that during the 2002 and 2004 election cycles,
private prison companies, directors, executives and lobbyists gave $3.3
million to candidates and state political parties across 44 states.
According to Edwin Bender, executive director of the Institute on Money
in State Politics, private prison companies strongly favor giving to
states with the toughest sentencing laws—in essence, the ones that are
more likely to come up with the bodies to fill prison beds. Those
states, adds Bender, are also the ones most likely to have passed
“three-strikes” laws. Those laws, first passed by Washington state
voters in 1993 and then California voters in 1994, quickly swept the
nation. They were largely based on “cookie-cutter legislation” pushed by
the American Legislative Exchange Council (ALEC), some of whose members
come from the ranks of private prison companies. Florida leads the pack
in terms of private prison dollars, with its candidates and political
parties receiving almost 20 percent of their total contributions from
private prison companies and their affiliates. Florida already has five
privately owned and operated prisons, with a sixth on the way. It’s also
privatized the bulk of its juvenile detention system. Texas and New
Jersey are close behind. But in Florida, some of the influence peddling
finally seems to be backfiring. Florida State Corrections Secretary
James McDonough alarmed private prison companies with a comment during
an Aug. 2 morning call-in radio show. “I actually think the state is
better at running the prisons,” McDonough told an interviewer. His
comments followed an internal audit last year by the state’s Department
of Management Services, which demonstrated that Florida overpaid private
prison operators by $1.3 million. Things may no longer be quite as sunny
as they once were in Florida for the likes of Nashville, Tenn.-based
Corrections Corporation of America (CCA) and the former Wackenhut, now
known as the GEO Group of Boca Raton, Fla. But with a little bit of
spiel-tinkering—and a shift of attention to other states—the prison
privatizers are likely to keep going. The key shift, Bender explains, is
that “the prison industry has gone from a we-can-save-you-money pitch to
an economic-development model pitch.” In other words, says Bender, “you
need [their] prisons for jobs.” If political donations are any measure,
economically challenged and poverty-stricken states like New Mexico are
a great target. In this campaign cycle, Democratic Gov. Bill Richardson
has already received more contributions from a private prison company
than any other politician campaigning for state office in the United
States. The Institute of Money in State Politics, which traced the
donations, reported that GEO has contributed $42,750 to Richardson since
2005—and another $8,000 to his running mate, Lt. Gov. Diane Denish.
Another $30,000 went from GEO to the Richardson-headed Democratic
Governors Association this past March. Richardson’s PAC, Moving America
Forward, was another prominent recipient of GEO donations. Now, its
former head, prominent state capitol lobbyist Joe Velasquez, is a
registered lobbyist for GEO Care Inc., a healthcare subsidiary that runs
a hospital in New Mexico. But don’t get the idea that GEO has any
particular love for Democrats: $95,000 from the corporation went to the
Republican Governors Association last year alone. What companies like
GEO do love are the millions of dollars rolling in from lucrative New
Mexico contracts to run the Lea County Correctional Facility (operating
budget: $25 million/year), and the Guadalupe County Correctional
Facility ($13 million/year), among others. CCA also owns and operates
the state’s only women’s facility in Grants ($11 million per year). To
make sure that those dollars keep flowing, GEO and CCA have perfected
the art of the “very tight revolving door,” says Bender, which involves
snapping up former corrections administrators, PAC lobbyists and state
officials to serve as consultants to private prison companies. In fact,
the current New Mexico Corrections Department Secretary Joe Williams was
once on GEO’s payroll as their warden of the Lea County Correctional
Facility. Earlier this year, Williams was placed on unpaid
administrative leave after accusations surfaced that he spent state
travel and phone funds to pursue a very close relationship with Ann
Casey. Casey is a registered lobbyist in New Mexico for Wexford Health
Sources, which provides health care for prisoners at Grants, and Aramark,
which provides most of the state’s inmate meals. In her non-lobbying
hours, it turns out that Casey is also an assistant warden at a state
prison in Centralia, Ill. It appears that even for a prison industry
enchanted by public-private partnership, Williams and Casey may have
gone too far.
May 31, 2006 New Mexican
A state prison contractor involved in the investigation of a
relationship between Corrections Secretary Joe Williams and a lobbyist
contributed $10,000 to Gov. Bill Richardson's re-election campaign. The
political-action committee for Aramark -- a Philadelphia-based company
that makes millions of dollars a year to feed New Mexico inmates --
contributed to Richardson's campaign in May 2005, according to
Richardson's most recent campaign-finance report. That was about a year
after Aramark renewed its contract with the state Corrections
Department. Aramark also has been generous to the state Democratic
Party, contributing $10,000 in 2004, and the Democratic Governors
Association, which Richardson chairs. The company contributed a total of
$15,000 to the DGA in 2004 and another $15,000 in 2005, according to
reports filed with the Internal Revenue Service. Aramark provides food
service to more than 475 correctional institutions in North America. The
corporation also has food-service contracts in colleges, hospitals,
convention centers and stadiums. Richardson spokesman Pahl Shipley
referred questions about the campaign donation to Richardson's campaign
manager, Amanda Cooper, who couldn't be reached for comment. The
Governor's Office announced this week that Williams is being put on
administrative leave while the state Personnel Office investigates his
relationship with Ann E. Casey, who registered as a lobbyist for Aramark
and Wexford Health Services, which provides health care to New Mexico
inmates. Casey is an assistant warden at an Illinois prison. A
copyrighted story in the Albuquerque Journal said Williams' state-issued
cell-phone records show 644 calls between Williams and Casey between
Sept. 24, 2005, and Feb. 23. According to that report, Casey was hired
as a consultant by Aramark in 2005, but that contract has since been
terminated. Aramark's $5.4 million contract ends in July. The Secretary
of State Office's Lobbyist Index lists Casey as a lobbyist for Wexford,
though the Journal report quotes a Wexford official saying the company
never hired her. In 2004, a $10,000 contribution to a Richardson
political committee from Wexford's parent company caused a stir and
later was returned to the Pittsburgh company. The Bantry Group made the
contribution to Richardson's Moving America Forward PAC in April 2004.
This was during a bidding process just a month after the Corrections
Department requested proposals for a contract to provide health care and
psychiatric services to inmates. That contract potentially is worth more
than $100 million, The Associated Press reported. In August 2004, a
Richardson spokesman said the money would be returned "to avoid even the
appearance of impropriety."
May 30, 2006 AP
Gov. Bill Richardson has put Corrections Secretary Joe Williams on
unpaid leave while the secretary's recent actions are investigated.
Richardson said the review will focus on Williams' use of a state-issued
cell phone, a state-funded trip that included some personal travel and
his relationship with a lobbyist. "Gov. Richardson wants a thorough
investigation to examine the secretary's actions and determine if
anything improper occurred," said James Jimenez, Richardson's chief of
staff. "The governor sets a very high ethical standard for his
administration and will not tolerate any level of abuse of authority or
public trust." A spokeswoman for the Corrections Department said
Williams was unavailable for comment. State Personnel Director Sandra
Perez will conduct the investigation through her office, Jimenez said.
Williams will be on unpaid leave until June 9, the day Perez's office is
to report to the governor. The Albuquerque Journal reported Sunday that
Williams spent about 91 hours on his state-issued cell phone talking
with Ann Casey, an assistant warden at a state prison in Centralia, Ill.
The calls between the two phones were placed between Sept. 24, 2005, and
Feb. 23, 2006. Casey registered as a lobbyist in 2005 for two companies
that have contracts with New Mexico to provide health care and meals to
prisoners. Williams described his relationship with Casey as a
friendship and said he doesn't give preferential treatment to anybody.
Richardson also is questioning a trip Williams took to Nashville on the
state's dollar. In January, Williams attended a conference of the
American Correctional Association. His travel records show he added a
St. Louis leg to the trip, which he said was personal. A 30-mile drive
from the St. Louis airport would land Williams at an address in O'Falcon,
Ill., which Casey listed on lobbyist registration forms. Records show
Williams wrote a check to his department in January for $266, the cost
of adding the St. Louis trip. While on the trip, Williams and Casey
accepted a dinner invitation from a company that operates a state prison
in Santa Rosa, according to Williams' e-mail records. A billing
statement for a hotel stay during the trip also lists two people in his
party, but Williams would not say who the second person was. Richardson
appointed Williams, a former warden at the Lea County Correctional
Facility in Hobbs and former warden at two state prisons, as corrections
secretary in 2003.
Pennsylvania Department of Corrections
August 18, 2007 Times-Tribune
The Lackawanna County Prison’s medical director was fired from a similar
post at a Pittsburgh-based health care services company in 1999 in an
apparent dispute over a new treatment for hepatitis C in state prisons
the company served. Company officials could not be reached to explain
his termination, but in a lawsuit later filed against the company, Dr.
Edward J. Zaloga claimed he was fired because he disagreed with a plan
to begin treating the liver disease with a then-new, unproven drug that
ultimately would be a waste of taxpayer money. The treatment “would
waste more than $7 million of the (state) taxpayers’ money on
unnecessary and unwarranted medical treatment,” he charged in a suit
filed against Wexford Health Sources Inc. in November 1999. He claimed
in his suit that his management practices had created a profit for the
company of $4.1 million, and the company — which at the time was trying
to get the state to pay for the new treatment — feared it might have to
pay for treating inmates if the state found out about its profits. He
was fired for raising the concerns, he alleged. The suit demanded more
than $1 million in unpaid wages, expenses, lawyer’s fees and punitive
damages. The company, in its legal responses, denied earning anywhere
near $4 million. It denied his other claims as well. County judges
rejected Dr. Zaloga’s suit in separate rulings in 2002 and 2004 with one
judge writing that Dr. Zaloga failed to establish “a report of
wrongdoing ... or waste.” Wexford in its legal filings acknowledged
firing Dr. Zaloga but did not say why. Dr. Zaloga is now co-owner of a
company, Correctional Care Inc., of Moosic, that provides medical
services to county prison inmates, and oversees those services. A former
inmate, Shakira Staten, 22, a federal prisoner who gave birth at the
prison July 10 and has since been transferred to Adams County Prison to
await sentencing, has sued him, the company and the prison in federal
court. She claims she was a victim of cruel and unusual punishment
because her pleas to be taken to the hospital when she went into labor
were ignored and she had the baby alone in a cell. The county Prison
Board this week apologized for the way she treated and blamed a
Correctional Care nurse for “serious errors of judgment” that included
failing to properly monitor her labor and unnecessarily delaying taking
her to the hospital. The board barred the nurse from working in the
prison. A secretary in the company’s office said Dr. Zaloga was not
available for comment and would only reply to written questions. A
secretary at Wexford Health Sources said no company officials would be
available to comment until next week. Dr. Zaloga was Wexford’s regional
medical director for its central Pennsylvania operations from Feb. 1 to
Sept. 29, 1999, the day the company’s operations director dismissed him,
according to court records.
State Correctional Institution, Muncy, Pennsylvania
May 12, 2005 Wilkes Barre
Times Herald
The family of a Wilkes-Barre woman who suffered a fatal asthma attack
while in prison will receive $2.15 million in a settlement of a lawsuit
against the state Department of Corrections and a health care provider.
Erin Finley, 26, died on Aug. 29, 2002 after medical personnel at the
State Correctional Institution at Muncy ignored her repeated pleas for
help, according to a federal lawsuit filed by her mother, Christine
Thomas of Wilkes-Barre. Evidence uncovered by Thomas’ attorney, Dan
Brier of Scranton, showed Finley desperately sought medical care for
severe asthma she had had since she was a child, but she was repeatedly
rejected based on a prison doctor’s belief that she was “faking” her
symptoms.
The federal suit, filed in June 2003, alleged employees of SCI Muncy and
its health care provider, Wexford Heath Sources Inc., showed a “callous
and deliberate” indifference for Finley. Finley continued to have
problems breathing and on July 27 wrote another request, asking a
different physician to see her “as soon as possible.” “My asthma is so
bad and Dr. Bardell says I am faking it. I don’t know what else to do,”
the request stated. On the morning of her death, Finley phoned her
mother in a hysterical state, saying she could not breathe. At around
noon she was directed to go to the infirmary, where a physician’s
assistant examined her. The assistant told Bardell that Finley needed to
go to the hospital, but he refused to see her and left the prison at
2:40 p.m. Twenty minutes later, Finley lost consciousness and stopped
breathing. She was transported to an area hospital, where she was
pronounced dead at 4:11 p.m.
St. Clair County Jail, St. Clair, Illinois
October 20, 2005 St. Clair
Record
A St. Clair County Jail inmate charged with first degree murder is
seeking $1 million in a lawsuit claiming he was denied proper
medication. In a federal court suit filed Oct. 18 against the county and
Wexford Health Sources, Darron Perkins claims his civil rights were
violated and his mental stability has been detrimentally affected.
Perkins, a disabled Vietnam veteran, claims he was given a greater dose
of medication by a nurse making rounds in the jail approximately two
months ago. He consumed all the medication that had been prescribed to
him by a psychiatrist, but the nurse accused him of giving pills to
another inmate.
Wyoming Department of Corrections
September 19, 2005 Star-Tribune
Wyoming Department of Corrections officials hope a new $10
million-a-year contract with Prison Health Services will save them some
health care costs in the long run. Unlike the department's previous
contract with Correctional Medical Services, the new private health care
provider will be an umbrella entity responsible for all medical, dental
and health services and other programs for the state's four penal
institutions. Prison Health Services of Brentwood, Tenn., will
subcontract for some of these services and also assumes 100 percent of
the risk with no caps on catastrophic claims. PHS, like CMS and another
predecessor, Wexford, has its critics. The May 2005 issue of Prison
Legal News said PHS has been the target of lawsuits over inmate health
care in New York, New Jersey, Nevada and Florida. Linda Burt, director
of the American Civil Liberties Union for Wyoming, said the volume of
health care complaints from inmates has remained the same from Wexford
through CMS and now to PHS. "It's still one of our big concerns," Burt
said. She said she looks carefully at all private prison providers.
"Nothing has ever shown me that private providers in the prison system
work well. It doesn't matter whether they are private providers of the
entire prison or just health care," she said. She noted that both
Wexford and PHS also were sued.
"I think the solution is an in-house solution," she added. "If you're
working for profit in that kind of system, you can't provide the
appropriate care and be a for-profit system. I think it's almost
impossible to do that."
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