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Regular Session, 2010
SENATE CONCURRENT RESOLUTI ON NO. 75
BY SENATOR MARIONNEAUX
MENTAL HEALTH. Requires legislative committee approval of DHH contracts of a term
of more than three years in duration for the privatization of any portion of the activities
which were performed by certain existing facilities or programs during FY 2009-2010 and
directs DHH to include certain requirements and evaluation factors in RFPs for contracts.
A CONCURRENT RESOLUTI ON1
To direct the Department of Health and Hospitals to include certain requirements for2
contracts of a term of more than three years in duration entered into by the3
Department of Health and Hospitals for the privatization of services currently4
provided by existing facilities operated by the office of mental health within the5
Department of Health and Hospitals, provide the method of source selection, and6
evaluation factors to be included in a request for proposals, to require legislative7
approval, and to direct the Department of Health and Hospitals to submit certain8
reports to the Senate and House committees on health and welfare.9
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana hereby directs10
the Department of Health and Hospitals to include certain requirements for contracts of a11
term of more than three years in duration entered into by the Department of Health and12
Hospitals for the privatization of services currently provided by existing facilities operated13
by the office of mental health within the Department of Health and Hospitals, and to provide14
the method of source selection and evaluation factors to be included in a request for15
proposals, to require legislative approval, and to direct the Department of Health and16
Hospitals to submit certain reports to the Senate Committee on Health and Welfare and the17
House Committee on Health and Welfare.18 SCR NO. 75
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BE IT FURTHER RESOLVED that "institution" as used in this Resolution shall1
include currently existing facilities at the following locations: Eastern Louisiana Mental2
Health System, Jackson Campus; Eastern Louisiana Mental Health System, Greenwell3
Springs Campus; Southeast Louisiana Hospital; and Central Louisiana State Hospital.4
BE IT FURTHER RESOLVED that "contract" as used in this Resolution shall mean5
any contract of a term of more than three years in duration entered into by the Department6
of Health and Hospitals for the privatization of any portion of the activities performed by the7
following existing institutions or programs operated by the office of mental health within the8
Department of Health and Hospitals during Fiscal Year 2009-2010, including without9
limitation: Eastern Louisiana Mental Health System, Jackson Campus; Eastern Louisiana10
Mental Health System, Greenwell Springs Campus; Southeast Louisiana Hospital, and11
Central Louisiana State Hospital.12
BE IT FURTHER RESOLVED that each request for proposal for a contract shall13
include the following evaluation factors:14
(1)A contractor's ability to formally interview and consider for employment15
under the contract any interested former employee of an institution.16
(2)A contractor's ability to employ any former employe e of an institution who17
was discharged from his state employment due to the privatization initiative18
and who has at least fifteen years of employment in the state civil service.19
(3)An itemized listing of services and respective cost per service proposed by20
the contractor for each state fiscal year of contract. The listing shall provide21
cost estimates which incorporate Consumer Price Index data. The listing22
shall be utilized for the purpose of comparison with the Fiscal Year 2009-23
2010 listing of types of services and respective cost per service of the24
institution to be privatized.25
(4)A contractor's ability to provide a level of services and overall patient26
capacity which is no less than the level of services and patient capacity27
provided during Fiscal Year 2009-2010 by the respective state institution.28
Standards for this evaluation factor shall include, without limitation, the bed29
capacity, the ratio of staff to patients, the staff credentials, including30 SCR NO. 75
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psychiatrists rather than psychologists, and registered nurses rather than1
licensed practical nurses, the quality of forensic and other psychiatric2
services, and the achievement of each patient outcome which is common to3
the services provided before privatization and after privatization of the4
institution.5
(5)Continuation of any psychiatric, medical doctor, nurse, pharmacist, or other6
healthcare personnel training activities to meet current and future needs of7
the state. 8
BE IT FURTHER RESOLVED that prior to awarding any contract, the Department9
of Health and Hospitals shall submit the proposed contract to the Senate Committee on10
Health and Welfare and the House Committee on Health and Welfare for review and11
approval. 12
BE IT FURTHER RESOLVED that the Senate Committee on Health and Welfare13
and the House Committee on Health and Welfare shall meet jointly to review the proposed14
contract, and, if approved by each committee, the Department of Health and Hospitals shall15
submit the proposed contract to the Joint Legislative Committee on the Budget for review16
and approval.17
BE IT FURTHER RESOLVED that within sixty days of the close of each state fiscal18
year, beginning with Fiscal Year 2012-2013, the secretary of the Department of Health and19
Hospitals shall provide a written report to the Senate Committee on Health and Welfare and20
the House Committee on Health and Welfare, which shall detail the results and costs21
associated with the contracted services, if any, since the privatization of the institutions.22
BE IT FURTHER RESOLVED that the results associated with the contracted23
services shall include, but not be limited to the following:24
(1)A comparison of actual patient outcomes for each service provided by a25
contractor which was formerly provided by an institution.26
(2)A comparison of employment information for each institution prior to and27
subsequent to the privatization, including the number of employees28
terminated, the number subsequently rehired, the average compensation29
(wages, benefits, and retirement contributions) of employees prior to and30 SCR NO. 75
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subsequent to privatization, a comparison of average compensation of1
employees terminated and subsequently rehired prior to and subsequent to2
the privatization, and a comparison of the number of credentialed3
professionals by category, including but not limited to psychiatrists,4
psychologists, registered nurses, and licensed practical nurses.5
(3)A comparison of costs to the state to deliver the mental health services6
through the privatization contract with the costs had the institution delivered7
the same mental health services, including but not limited to per diem costs8
per inpatient and outpatient. Such costs shall include capital costs whether9
or not such costs are reflected in the privatization contract or elsewhere in the10
state budget. 11
BE IT FURTHER RESOLVED that these requirements shall become effective upon12
adoption of this Resolution. 13
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the14
secretary of the Department of Health and Hospitals.15
The original instrument was prepared by Danielle Doiron. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Greg Waddell.
DIGEST
Marionneaux SCR No. 75
Requires prior approval of the Senate and House committees on health and welfare, meeting
jointly, and, if approved by each committee, requires further review and approval by the
Joint Legislative Committee on the Budget of contracts of a term of more than three years
in duration entered into by the DHH for the privatization of any portion of the activities
which were performed by specific existing facilities or programs during FY 2009-2010.
Directs DHH to include certain requirements and evaluation factors in requests for proposals
for such contracts and provide reports with respect to the contracts. The existing 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 RFPs for such contracts to contain evaluation factors that include the following:
(1)A contractor's ability to consider former employees of the institution for
employment. SCR NO. 75
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(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, requires further review and approval by 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.
Specifies that the resolution is effective upon its adoption.
Summary of Amendments Adopted by Senate
Senate Committee Amendments to original resolution.
1. Deleted a provision requiring prior approval of privatization contracts of 3
years or longer by the Senate and House committees on health and welfare,
meeting jointly, and, if approved by each committee, the Joint Legislative
Committee on the Budget.
2. Deleted a provision that the bill become effective upon its adoption. SCR NO. 75
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3. Deletes a provision limiting the effect of the resolution to contracts beginning
after April 15, 2010 and excluding renewals and extensions of such contracts,
instead specifies that the resolution applies to "existing facilities" and
"existing institutions and programs".
4. Deletes a provision requiring the "method of source selection" for such
privatization contracts to be a request for proposal as provided in R.S.
39:1503, but retains requirements for RFPs.
5. Directs the Department of Health and Hospitals to take required resolution
actions, rather than the office of mental health within such department.
Senate Floor Amendments to original resolution.
1. Restores a provision deleted by committee amendment requiring prior
approval of privatization contracts of 3 years or longer by the Senate and
House committees on health and welfare, meeting jointly, and, if approved
by each committee, the Joint Legislative Committee on the Budget.
2. Restores a provision deleted by committee amendment that the bill become
effective upon its adoption.