The Department of Corrections has increased its use of telemedicine in recent years to cope with budget cuts.
Lawmakers reviewing LSU hospital privatization deals Friday said they were displeased that the state would contract with an out-of-state company rather than use its own university system for the services.
"How could you not pick our medical school to provide the service?" asked Sen. Ed Murray, D-New Orleans, a member of the Joint Legislative Committee on the Budget.
Thomas Bickham, undersecretary of the Department of Corrections, said US Telehealth put in a lower bid than the LSU Health Care Services Division for the work. He said the state will save nearly $1 million by using the Texas firm, which he said was the cheapest of the five bids submitted to the state.
"This was a competitive process," Bickham said.
As part of the Jindal administration's hospital privatization efforts, the corrections department will receive $50 million in the 2013-14 fiscal year to cover the costs of prisoner care, which had previously been paid through the LSU healthcare system.
"We've been given $50 million, and we're trying to act responsibly with it," Bickham said. "And if we can get the same level of service — if not more service — for a better price, I think it's our responsibility to do that."
It was unclear how much the US Telehealth contract will cost—or if the savings listed by Bickham were annual or over the life of the deal. The corrections department didn't immediately respond Friday to follow-up requests for contract details.
"Are we completely abandoning our medical school?" asked Sen. Bret Allain, R-Franklin, saying he heard other prisoner care contracts with LSU would be abandoned, as well.
Murray said the corrections department should have returned to LSU to determine if the university system could match the price offered by US Telehealth. He said the loss of the contract will shrink funding for the medical schools, which he said likely will either ask lawmakers for more money to fill the gap or seek tuition increases on its students.
"Does this company have to at least use Louisiana doctors?" Murray asked.
Bickham replied that at least half of the firm's doctors were based in Louisiana, while the remaining physicians would be from Texas. Raman Singh, medical director for the corrections department, said the Texas-based doctors will have to get licensed in Louisiana.
