Funding of correctional health care and its implications
Correctional healthcare is funded through a range of mechanisms, reflecting many of the community fee-for-service and managed care parallels. Like community healthcare, utilization of healthcare in correctional settings is increasing. It is however, often under more significant budgetary constraints and tighter management. The funding of correctional healthcare is a complex enterprise, driven by constitutionally mandated care obligations on the one hand, and resource constraints on the other. Along with the dramatic increase in the incarcerated population during the past two decades, correctional healthcare has evolved as well. The costs of care are quite substantial, and the diversity of models of care delivery offer an administrative challenge, a financial challenge to the relevant jurisdiction, and a significant opportunity for cost effectiveness. Unfortunately, as of yet, no comparative study of funding models has been done. As integrated electronic health and financial records are gradually introduced into correctional settings, opportunities for such studies, and the policy guidance provided by those results, may yield important information applicable to health care cost and outcome management in society more broadly. This chapter includes a discussion of global capitation, per inmate costs, at-risk contracting, liability concerns, performance indicators, and a variety of contractual relationships.