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Regular Session, 2010
SENATE CONCURRENT RESOLUTI ON NO. 75
BY SENATOR MARIONNEAUX
MENTAL HEALTH. Directs Office of Mental Health to include certain requirements in
contracts for the privatization of services currently provided by facilities operated by the
Office of Mental Health.
A CONCURRENT RESOLUTI ON1
To direct the Office of Mental Health to include certain requirements for contracts of a term2
of more than three years in duration entered into by the Department of Health and3
Hospitals for the privatization of services currently provided by facilities operated4
by the Office of Mental Health, provide the method of source selection, and5
evaluation factors to be included in a request for proposals, to require legislative6
approval, and to direct the Department of Health and Hospitals to submit certain7
reports to the Senate and House committees on health and welfare.8
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana hereby directs9
the Office of Mental Health to include certain requirements for contracts of a term of more10
than three years in duration entered into by the Department of Health and Hospitals for the11
privatization of services currently provided by facilities operated by the Office of Mental12
Health, and to provide the method of source selection, and evaluation factors to be included13
in a request for proposals, to require legislative approval, and to direct the Department of14
Health and Hospitals to submit certain reports to the Senate Committee on Health and15
Welfare and the House Committee on Health and Welfare.16
BE IT FURTHER RESOLVED that "institution" as used in this Resolution shall17
include the Eastern Louisiana Mental Health System, Jackson Campus; Eastern Louisiana18 SCR NO. 75
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Mental Health System, Greenwell Springs Campus; Southeast Louisiana Hospital; and1
Central Louisiana State Hospital.2
BE IT FURTHER RESOLVED that "contract" as used in this Resolution shall mean3
any contract of a term of more than three years in duration entered into by the Department4
of Health and Hospitals beginning any time after April 15, 2010, for the privatization of any5
portion of the activities performed by the following institutions or programs operated by the6
Office of Mental Health during Fiscal Year 2009-2010, including without limitation: Eastern7
Louisiana Mental Health System, Jackson Campus; Eastern Louisiana Mental Health8
System, Greenwell Springs Campus; Southeast Louisiana Hospital, and Central Louisiana9
State Hospital, except the renewal or extension of any contract in effect prior to April 15,10
2010 shall not be covered under this Resolution.11
BE IT FURTHER RESOLVED that the method of source selection for a contract12
shall be a request for proposal, as provided in R.S. 39:1503.13
BE IT FURTHER RESOLVED that each request for proposal for a contract shall14
include the following evaluation factors:15
(1)A contractor's ability to formally interview and consider for employment16
under the contract any interested former employee of an institution.17
(2)A contractor's ability to employ any former employee of an institution who18
was discharged from his state employment due to the privatization initiative19
and who has at least fifteen years of employment in the state civil service.20
(3)An itemized listing of services and respective cost per service proposed by21
the contractor for each state fiscal year of contract. The listing shall provide22
cost estimates which incorporate Consumer Price Index data. The listing23
shall be utilized for the purpose of comparison with the Fiscal Year 2009-24
2010 listing of types of services and respective cost per service of the25
institution to be privatized.26
(4)A contractor's ability to provide a level of services and overall patient27
capacity which is no less than the level of services and patient capacity28
provided during Fiscal Year 2009-2010 by the respective state institution.29
Standards for this evaluation factor shall include, without limitation, the bed30 SCR NO. 75
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capacity, the ratio of staff to patients, the staff credentials, including1
psychiatrists rather than psychologists, and registered nurses rather than2
licensed practical nurses, the quality of forensic and other psychiatric3
services, and the achievement of each patient outcome which is common to4
the services provided before privatization and after privatization of the5
institution.6
(5)Continuation of any psychiatric, medical doctor, nurse, pharmacist, or other7
healthcare personnel training activities to meet current and future needs of8
the state. 9
BE IT FURTHER RESOLVED that prior to awarding any contract, the Department10
of Health and Hospitals shall submit the proposed contract to the Senate Committee on11
Health and Welfare and the House Committee on Health and Welfare for review and12
approval. 13
BE IT FURTHER RESOLVED that the Senate Committee on Health and Welfare14
and the House Committee on Health and Welfare shall meet jointly to review the proposed15
contract, and, if approved by each committee, the Department of Health and Hospitals shall16
submit the proposed contract to the Joint Legislative Committee on the Budget for review17
and approval.18
BE IT FURTHER RESOLVED that within sixty days of the close of each state fiscal19
year, beginning with Fiscal Year 2012-2013, the secretary of the Department of Health and20
Hospitals shall provide a written report to the Senate Committee on Health and Welfare and21
the House Committee on Health and Welfare, which shall detail the results and costs22
associated with the contracted services, if any, since the privatization of the institutions.23
BE IT FURTHER RESOLVED that the results associated with the contracted24
services shall include, but not be limited to the following:25
(1)A comparison of actual patient outcomes for each service provided by a26
contractor which was formerly provided by an institution.27
(2)A comparison of employment information for each institution prior to and28
subsequent to the privatization, including the number of employees29
terminated, the number subsequently rehired, the average compensation30 SCR NO. 75
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(wages, benefits, and retirement contributions) of employees prior to and1
subsequent to privatization, a comparison of average compensation of2
employees terminated and subsequently rehired prior to and subsequent to3
the privatization, and a comparison of the number of credentialed4
professionals by category, including but not limited to psychiatrists,5
psychologists, registered nurses, and licensed practical nurses.6
(3)A comparison of costs to the state to deliver the mental health services7
through the privatization contract with the costs had the institution delivered8
the same mental health services, including but not limited to per diem costs9
per inpatient and outpatient. Such costs shall include capital costs whether10
or not such costs are reflected in the privatization contract or elsewhere in the11
state budget. 12
BE IT FURTHER RESOLVED that these requirements shall become effective upon13
adoption of this Resolution. 14
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the15
secretary of the Department of Health and Hospitals.16
17
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Danielle Doiron.
DIGEST
Marionneaux SCR No. 75
Directs contractors for privatization of certain DHH mental health facilities and services be
selected through the request for proposals (RFP) method and that RFPs include certain
evaluation factors and defined tasks, and directs prior legislative committee approval of such
contracts. This shall apply to any contract of a term of more than three years in duration
entered into by the DHH beginning any time after April 15, 2010, for the privatization of any
portion of the activities which were performed by specific institutions or programs during
FY 2009-2010. The institutions and programs specified are:
(1)Eastern Louisiana Mental Health System, Jackson Campus.
(2)Eastern Louisiana Mental Health System, Greenwell Springs Campus.
(3)Southeast Louisiana Hospital.
(4)Central Louisiana State Hospital.
Requires such contracts use the RFP method of selecting a sole source contractor. Requires
any RFP contain certain evaluation factors. SCR NO. 75
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Requires RFPs contain evaluation factors that include the following:
(1) A contractor's ability to consider former employees of the institution for employment.
(2) The contractor's ability to employ any former employee of the institution with 15 years
or more experience in the state civil service.
(3) An itemized listing of services and cost per service proposed by contractor for each state
fiscal year of contract, and cost estimates that incorporate Consumer Price Index data.
(4) The contractor's ability to provide a level of services and overall patient capacity which
is no less than the level of services and patient capacity provided during FY 2009-2010 by
the respective state institution; standards shall include the bed capacity, the ratio of staff to
patients, the staff credentials, including psychiatrists rather than psychologists, and
registered nurses rather than licensed practical nurses, the quality of forensic and other
psychiatric services, and the achievement of each patient outcome.
(5) The continuation of any psychiatric, medical doctor, nurse, or other healthcare personnel
training activities to meet current and future needs of the state.
Requires prior approval of the Senate and House committees on health and welfare, meeting
jointly, and, if approved by each committee, for review and approval of the Joint Legislative
Committee on the Budget.
Requires the DHH secretary to submit a written report to the Senate and House committees
on health and welfare detailing the results and costs associated with the contracted services
since the privatization of the institutions. Provides that such report shall be provided within
60 days of the close of each state fiscal year, beginning with FY 2012-2013. Requires that
such report include:
(1)An evaluation of actual patient outcomes for each service provided by a contractor
which was formerly provided by an institution.
(2)A comparison of employment information for each institution, including the number
of employees terminated, the number subsequently rehired, the average
compensation (wages, benefits, and retirement contributions) of employees prior to
and subsequent to privatization, a comparison of average compensation of employees
terminated and subsequently rehired prior to and subsequent to the privatization, and
a comparison of the number of credentialed professionals by category including
psychiatrists, psychologists, registered nurses, and licensed practical nurses.
(3)A comparison of costs to the state to deliver the mental health services via the
privatization contract with the costs had the institution delivered the same mental
health services, including but not limited to per diem costs per inpatient and
outpatient. Such costs shall include capital costs whether or not such costs are
reflected in the privatization contract or elsewhere in the state budget.