SOUTH DAKOTA DEPARTMENT OF HEALTH
FOR RELEASE: March 12, 2001
CONTACTS: Doneen Hollingsworth, Department of Health, 773-3361
Betty Oldenkamp, Department of Human Services, 773-5990
Jenny Olson, Sioux Valley Hospital USD Medical Center, 333-7059

Correctional health moves from private sector to state Health Department

     PIERRE - The state will begin delivering correctional health services directly and will not renew its contract with Sioux Valley Hospital, a state health official said today. The move marks a return to the way correctional health care has been delivered for most of the state's history - with the exception of 6 years by Sioux Valley and 3 years by an out-of-state firm, the services have always been delivered by the state. 

     "This change has nothing to do with the quality of care Sioux Valley provided for the correctional system. This is all about getting directly involved in cost control," said Secretary of Health Doneen Hollingsworth. "Sioux Valley will work closely with us in the transition and will continue to provide inpatient and outpatient care under contract with the department. We also anticipate that many of their staff who now deliver correctional health services will continue to do so as employees of the state."

     Hollingsworth said the Department of Health will manage the system and will hire the direct care staff to deliver correctional health services, including nurses, dietitians, physician assistants, nurse practitioners, and physicians. The Department of Human Services will hire the professional staff to provide mental health services.

     "The state has been reviewing the correctional health contract for the past several months because of increasing costs," said Hollingsworth. "The state's FY 2002 budget includes $6.4 million for adult and juvenile correctional health services. All private options for the correctional health services contract for 2002 exceeded that amount."

     The secretary said the change will mean no immediate cost savings but will better position the state to control costs in the future. The department will assume management of correctional health services within 60 days. The timing for the transition was determined by the fact that Sioux Valley's fiscal year begins May 1.

     Becky Nelson, President of Sioux Valley Hospital USD Medical Center, stated, "We've enjoyed a good working relationship with the State of South Dakota and the changes in the agreement will allow the Department of Health to continue to provide the high quality care the inmates have received in the past. We fully support the state in this decision and are working tirelessly to make this transition as seamless as possible for the staff involved."