KIM CHANDLER
News staff writer
January 9, 2004

MONTGOMERY - A legislative panel delayed medical care contracts for state prisons Thursday, complaining that the Department of Corrections didn't take bids for the nearly $170 million in work.

"This is a lot of money," said Sen. Rodger Smitherman, D-Birmingham.

Two members of the Joint Legislative Contract Review Committee complained that the prison system didn't use a bid process to pick who will provide health care to state inmates. Republican Gov. Bob Riley frequently criticized then-Gov. Don Siegelman's use of no-bid contracts during the 2002 election.

However, Department of Corrections Commissioner Donal Campbell said the prison system took proposals and selected the cheapest companies. That's essentially the same as a formal bid process, he said. The state isn't required to use a bid process on professional service contracts.

"We feel we selected the best vendor at the lowest cost to provide that service," Campbell said.

Committee members delayed a $143 million contract with Prison Health Services of Brentwood, Tenn., to provide medical care for three years and a $29 million contract with MHM Correctional Services Inc. of Vienna, Va., to provide mental health care.

The committee also delayed a $90,000 contract with Correctional Medical Management of Nashville, Tenn., to monitor the work.

The committee does not have the authority to kill state government contracts, but it can delay them for 45 days.

The state had hired Birmingham-based NaphCare Inc. to provide the service, but Campbell canceled that contract, extending it month-to-month until a new contract could be awarded. A state audit said NaphCare was providing "extremely poor quality health care," but the company disputed those findings.

The prison system opened proposals in September for the new medical services contract.

The committee also rejected a plan by Riley's Department of Finance to hire a Birmingham-based consulting firm, Vantage Associates Inc., to provide strategic planning for the state. The company would be paid $37,900 for nine months of work.

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