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IDOC projects higher county/out‑of‑state placement and medical‑services costs; cautions on contract negotiation outcomes
Summary
Legislative analysts told the committee that population changes and higher medical utilization are driving supplemental requests for county and out‑of‑state placements and medical services; IDOC said contract negotiations could raise medical costs further if rebid.
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Analysts told the Joint Finance Preparations Committee Feb. 4 that population shifts and increased medical utilization are driving supplemental requests in the County and Out‑of‑State Placement and Medical Services divisions of the Idaho Department of Correction.
Legislative analyst Noah Peterson said the divisions have no FTP (they are operating‑cost divisions) and that FY2025 supplemental requests reflect updated population projections and higher-than‑expected medical usage. The supplemental requests shown to the committee included a population‑driven per‑diem adjustment and a $5,957,200 medical‑services supplemental to cover higher utilization in the current fiscal year.
Contract negotiation caveat: Peterson said negotiations with the current medical contractor are ongoing. If IDOC successfully negotiates with the current provider, the agency projects an approximate 10% increase in medical contract costs from the previous contract; if negotiations fail and the service is rebid, IDOC projects a 30% to 40% increase. The requested supplemental and the ongoing FY2026 projection assume a successful negotiation (the 10% scenario).
County per‑diems and methodology: The analyst explained that county per‑diem averages can move as the mix of short‑term (1–7 days) and longer‑term stays changes. A committee member asked about per‑diem setting; Director Tewalt clarified that county‑jail per‑diems are set in statute (Idaho code) and that the two‑tiered rate is intended to encourage prompt state pickup to avoid county backlogs.
Why it matters: Medical and placement costs are materially variable and can drive significant supplemental needs in corrections budgets. The committee did not act on these requests in the hearing; analysts noted the governor recommended the items in the packet and that the agency continues discussions with its contractor.
