Amending the “Florida Efficient
Government Act”
Efficiency and
accountability
of all. |
Why Does it Matter? |
The State of Florida is spending
over $2 billion per year on
outsourced health and human
services contracts, with both forprofit
and not-for-profit companies
throughout the state. This is a
significant portion of the state’s
economy, and outsourcing allows
the state to provide essential
services to citizens in need. Florida
businesses pay substantial taxes to
fund state government. We can
more efficiently and accountably
provide these services. Therefore,
we must demand that the state
functions in an efficient and
forthright manner with the health
and human services companies and
providers so that the services being
provided are performed without
sacrificing consistent levels of care
for their patients around the state.
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During the 2006 Regular Session,
the Florida Legislature
passed the “Florida Efficient
Government Act” for the purpose of
allowing state agencies to contract
with private sector vendors when
those vendors can provide more effective
services, thereby reducing the cost of government. The stated intent
was to target contracts for commodities. Although certain health and human
services are exempt, the exemption does not cover all health and human services
contracts. There are many managing entities and service providers that
provide mission critical assistance to the Department of Juvenile Justice, Department
of Corrections, the Department of Children and Family Services,
and the Agency for Health Care Administration that are not exempted. This
session the Governmental Outsourcing Council (GOC) has proposed legislation
that provides for the appropriate exemptions.
Because we want to ensure full efficiency and accountability of all involved
in meeting the health and human services needs, HB 495 sponsored by Rep.
Aaron Bean (R-Fernandina Beach), and SB 1166 by Sen. Stephen Wise (R-Jacksonville),
provide for transparency in negotiations and contracting, efficiency
in providing consistent levels of service, and stability for the client, as well as
accountability to the Legislature by requiring annual reporting. Among other
provisions the proposed legislation:
- Requires that contracts contain clear outcome-related measures and specifications
to determine when deliverables are fulfilled; requires deliverables to
be based on the specifications of the contracting agency, and national outcome-
related standards or measures; and, due to the nature of variables in
measuring human services, state acceptable parameters for deliverables.
- Requires that any changes in executed contracts be made only after reopening
negotiations with providers; that cost-benefit analysis be utilized as part of
any negotiation or renegotiation; provides that amendments to contracts be justified
by need; requires adequate compensation for any modification to the contract;
requires a reasonable period of time for negotiation and execution of a
contract after the award; and requires that an ombudsman be provided along
with a procedure for facilitating or assisting in resolving contract disputes.
- Requires the department to establish model rates of payment based
on geographical regions of the state; implement a mechanism to
annually adjust rates of payment; specify method of payment for
services rendered; provide for reimbursement within a prescribed
timeframe; and ensure that payment will be made on non-disputed
items in accordance with the payment schedule.
- Requires the department to specify a reasonable number of annual
monitoring visits to ensure that the appropriate oversight will occur
without negatively affecting levels of service and continuity of care.
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