Health Care Costs

Issue Code:	2300070
Program:	Health Services
Title:	Price Level Increases
Amount:	$16,376,178
FTE:	N/A

The department is requesting $16,376,178 for health services to meet inmate health care needs. This request is based on projections for FY 2006-07, which are expected to exceed current appropriations, and FY 2005-06 actual expenditures adjusted for each subsequent year by the following:

• A projected increase in drug costs of 8.57% based on a current estimates.
  
  
• A 6.3% increase in hospital and related services costs based on Consumer Price Index, All Urban Consumers, Unadjusted 12-months ended April 2006 (CPI).
  
  
• A 2.7% increase in physician fees, CPI - professional services (medical care).
  
  
• A 5.0% projected increase in temporary employment costs based on current and projected utilization which continues to increase due to the nationwide shortage of nurses and other trained medical personnel.

Other projected increases based on the Consumer Price Index
Inmate Health Services	$ 4,768,147
General Drugs	$ 4,603,396
Psychotropic Drugs	$ 138,479
Infectious Disease Drugs	$ 6,866,156
Total	$16,376,178

Projected shortfalls in OPS, expenses and the additional shortfall in inmate health services will be funded with projected surplus in salaries.