New York City Department of Health and Mental Hygiene

Contracted Health Care Services for New York City Prison Inmates

A contractor overseen by the New York City Department of Health and Mental Hygiene is responsible for providing health care services to New York City prison inmates. We audited the Department to determine whether its monitoring of the contractorís performance provided adequate assurance health care services met contract requirements. We identified the need for certain improvements in the Departmentís monitoring efforts, as several of the performance standards established by the Department were not being met by the contractor. The Department is allowed by the contract to assess financial penalties when these standards are not met, and we recommended the Department consider increasing the penalties when the contract was due to be extended or rebid at the end of 2007. We also audited the process used in awarding the $359 million contract in 2004, and found the award process was open and competitive. However, $9.2 million in service enhancements that were negotiated into the contract after the contractorís proposal was accepted were not adequately supported by written documentation.

For a complete copy of Report 2005-N-5 click here.
For a copy of the associated follow-up report click here.