An Audit Report on
Correctional Managed Health Care at
John K eel, C P A The Texas Tech University Health Sciences Center
State A uditor

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The Department of Criminal Justice
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DQG,QILVFDO\HDU778+6&H[SHULHQFHGD Health Care Committee to provide
offender health care.
VXUSOXV DIWHU UHFHLYLQJ  PLOOLRQ LQ VXSSOHPHQWDO DSSURSULDWLRQV The Correctional Managed Health Care
,Q ILVFDO \HDU  778+6& PDQDJHPHQW UHSRUWHG WKDW RIIVLWH Committee serves as the oversight and
KRVSLWDODPEXODQFHDQGVSHFLDOW\FDUHFRVWVKDGDVLJQLILFDQW HIIHFW coordination authority for the delivery of
health care to offenders. Texas
RQ778+6&¶VUHSRUWHGGHILFLWVHH7DEOHLQWKHDWWDFKPHQWWRWKLV Government Code, Chapter 501,
OHWWHUIRUDGGLWLRQDOGHWDLOV established the primary mission and
related authority of the Correctional
Managed Health Care Committee.
7KH6WDWH$XGLWRU¶V2IILFH¶VDXGLWRI778+6&LGHQWLILHGLVVXHVWKDW The Correctional Managed Health Care
ZHUH VLPLODU WR WKH LVVXHV LGHQWLILHG DW WKH 8QLYHUVLW\ RI 7H[DV Committee then contracts with the
University of Texas Medical Branch at
0HGLFDO %UDQFK DW *DOYHVWRQ VHH An Audit Report on Correctional Galveston and the Texas Tech University
Managed Health Care at the University of Texas Medical Branch at Health Sciences Center to provide health
care services to offenders.
Galveston, 6WDWH $XGLWRU¶V 2IILFH 5HSRUW 1R  )HEUXDU\
7KH6WDWH$XGLWRU·V2IILFHhas issued a
  7KRVH LVVXHV PD\ KDYH D GLUHFW HIIHFW RQ WKH GHILFLW WKDW separate report on the University of Texas
778+6&UHSRUWHGDQGDUHVXPPDUL]HGEHORZ Medical Branch at Galveston (see An
Audit Report on Correctional Managed
Health Care at the University of Texas
Indirect Costs. ,QILVFDO\HDUVDQG778+6&FKDUJHGLWV Medical Branch at Galveston, State
$XGLWRU·V2IILFH5HSRUW1R-‐017,
FRQWUDFW ZLWK WKH &RUUHFWLRQDO 0DQDJHG +HDOWK &DUH &RPPLWWHH IRU February 2011).
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LQGLUHFW FRVWVDW DQHVWLPDWHG SHUFHQW RIWRWDO UHYHQXHV+RZHYHU Committee.
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Salaries. $FFRUGLQJWRLQIRUPDWLRQ778+6&SURYLGHGZKLOHSURMHFWLQJDGHILFLWRIPLOOLRQLQILVFDO
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Robert E. Johnson Building Phone: (512) 936 -‐950 0
1501 North Congress Avenue P.O. Box 12067 Fax: (512) 93 6-‐9400
Austin, Texas 78701 Austin, Texas 78711 -‐20 67 Internet: www.sao.state.tx.u s

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This document is not copyrighted. Readers may make additional copies of this report as needed. In
DGGLWLRQPRVW6WDWH$XGLWRU·V2IIice reports may be downloaded from our Web site:
www.sao.state.tx.us.

In compliance with the Americans with Disabilities Act, this document may also be requested in
alternative formats. To do so, contact our report request line at (512) 936-‐9500 (Voice), (512) 936-‐9400
(FAX), 1-‐800-‐RELAY-‐TX (TDD), or visit the Robert E. Johnson Building, 1501 North Congress Avenue, Suite
 4.224, Austin, Texas 78701.

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race, color, religion, sex, national origin, age, or disability in employment or in the provision of services,
programs, or activities.

To report waste, fraud, or abuse in state government call the SAO Hotline: 1-‐800-‐TX-‐AUDIT.


 Attachment
Section 1
TTUHSC Correctional Managed Health Care Expenditures for Fiscal
Years 2009 and 2010

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Table 1

TTUHSC Correctional Managed Health Care Expenditures

Fiscal Years 2009 and 2010

Fiscal Year 2009 Fiscal Year 2010

Totals for
Percent of Percent of Fiscal Years
Total Total 2009 and
Expenditure Category Expenditures Expenditures Expenditures Expenditures 2010

Salaries $ 29,862,758 29.57% $ 32,662,091 29.76% $ 62,524,849

Benefits 7,210,003 7.14% 7,708,921 7.02% 14,918,924
Operating Expenditures 3,438,278 3.40% 2,766,681 2.52% 6,204,959
(Maintenance and
Operations)
Professional Services 6,707,716 6.64% 7,058,522 6.43% 13,766,238
Contracted Units/Services 23,660,936 23.43% 24,551,003 22.37% 48,211,939
Travel 179,349 0.18% 188,504 0.17% 367,853
Electronic Medicine 315,274 0.31% 371,697 0.34% 686,971
(Telemedicine/EMR)
Capital Equipment 411,675 0.41% 370,010 0.34% 781,685
Exceeding $5,000
Depreciation 0 0.00% 0 0.00% $0
Indirect Expenses 5,701,280 5.65% 6,133,412 5.59% 11,834,692
Pharmaceutical Purchases 6,859,760 6.79% 7,605,150 6.93% 14,464,910
(Drug Costs)
University Professional 962,023 0.95% 1,122,476 1.02% 2,084,499
Services
Freeworld Provider 15,421,674 15.27% 18,904,415 17.22% 34,326,089
Services
Estimated Incurred But 250,000 0.25% 325,000 0.30% 575,000
Not Reported (IBNR)
Expenditures
a
Totals $100,980,726 100.00% $109,767,882 100.00% $210,748,608
Source: Information provided by TTUHSC.

Attachment
An Audit Report on Correctional Managed Health Care at the Texas Tech University Health Sciences Center
SAO Report No. 11-‐019
February 2011
Page 1
 Section 2
Organizational Chart for TTUHSC Correctional Managed Health Care

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Figure 1

Organizational Chart for TTUHSC Correctional Managed Health Care

Fiscal Year 2010

Department of Criminal
Justice
$466.4 million

Correctional Managed Health

Care Committee

Retains $0.7 million

(See Note 1)

Texas Tech University Health

Sciences Center
$99.6 million

Texas Tech University Health

Sciences Center
Dean of the School of
Medicine

Texas Tech University Health

Sciences Center
Associate Dean
Health Services Management

CMHC Executive Medical

CMHC Executive Director
Director

CMHC Administration
CMHC Medical (Includes Field Operations,
(includes Dental, Regional CMHC Recruitment, CMHC
Medical Directors and staff, Mental Health System,
Nursing Services, Utilization Regional Medical Facility,
Management, and Information Systems,
Credentials Coordinator) Finance and Administration,
(See Note 2) and Human Resources)
(See Note 2)

Note 1: Of the $466.4 million it receives from the Department of Criminal Justice, the Correctional Managed Health Care Committee
retains $0.7 million for its operations, passes $99.6 million through to TTUHSC, and passes $366.1 million to the University of Texas
Medical Branch at Galveston.
Note 2: TTUHSC estimated its fiscal year 2010 salary costs would be approximately $23 million for CMHC Medical and approximately $8
million for CMHC Administration.
Source: Developed by auditors based on information provided by TTUHSC.

Attachment
An Audit Report on Correctional Managed Health Care at the Texas Tech University Health Sciences Center
SAO Report No. 11-‐019
February 2011
Page 2
Section 3
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Attachment
An Audit Report on Correctional Managed Health Care at the Texas Tech University Health Sciences Center
SAO Report No. 11-‐019
February 2011
Page 3
 

Attachment
An Audit Report on Correctional Managed Health Care at the Texas Tech University Health Sciences Center
SAO Report No. 11-‐019
February 2011
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An Audit Report on Correctional Managed Health Care at the Texas Tech University Health Sciences Center
SAO Report No. 11-‐019
February 2011
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Section 4
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Attachment
An Audit Report on Correctional Managed Health Care at the Texas Tech University Health Sciences Center
SAO Report No. 11-‐019
February 2011
Page 6
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An Audit Report on Correctional Managed Health Care at the Texas Tech University Health Sciences Center
SAO Report No. 11-‐019
February 2011
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An Audit Report on Correctional Managed Health Care at the Texas Tech University Health Sciences Center
SAO Report No. 11-‐019
February 2011
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An Audit Report on Correctional Managed Health Care at the Texas Tech University Health Sciences Center
SAO Report No. 11-‐019
February 2011
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