An Audit Report on the Cost of the State's Correctional Managed Health Care Page: 24 of 34
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Appendices
Appendix 1
Objective, Scope, and Methodology
Objective
The audit objective was to determine the methodologies the University of
Texas Medical Branch at Galveston (Medical Branch) and the Texas Tech
University Health Sciences Center (Health Sciences Center) use to allocate the
overhead costs associated with providing inmate health care.
Scope
The audit focused on the institutions' methodologies surrounding the
compilation of costs incurred in providing services under their contracts with
the Correctional Managed Health Care Committee. These contracts are
managed by the Correctional Managed Care Department at the Medical
Branch and by the Correctional Managed Health Care Department at the
Health Sciences Center. We audited processes for the following costs the
institutions reported they incurred from September 2004 through February
2006:
- Indirect costs.
- Salaries for on-site treatment.
- Contracts for on-site treatment (Health Sciences Center only).
- Charges for the prison hospital in Galveston (Medical Branch only).
- Charges from the Medical Branch pharmacy (Medical Branch only).
- Billing payments for off-site treatment.
- Preparation of the financial reports submitted to the Correctional Managed
Health Care Committee.
Methodology
The audit methodology included interviewing staff at the Department of
Criminal Justice, the Correctional Managed Health Care Committee, the
Medical Branch, and the Health Sciences Center; reviewing documentation
for financial amounts institutions reported to the Correctional Managed Health
Care Committee; and analyzing payroll records and patient billing data to
determine compliance with the institutions' policies and procedures.
An Audit Report on the Cost of the State's Correctional Managed Health Care
SAO Report No. 07-003
October 2006
Page 19
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Texas. Office of the State Auditor. An Audit Report on the Cost of the State's Correctional Managed Health Care, report, October 2006; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth517778/m1/24/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.