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Committee advances measure requiring cost analysis before contracting medical positions in CDCR, DSH

2696658 · March 19, 2025
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Summary

AB 393 would require the Department of Corrections and Rehabilitation and the Department of State Hospitals to perform a cost analysis and hire civil‑service physicians when contractors cost more; committee approved the bill with supporters citing prior findings of contracting excess costs.

AB 393, presented by Assemblymember Connolly, would require the California Department of Corrections and Rehabilitation (CDCR) and the Department of State Hospitals (DSH) to conduct a cost comparison before using contractors to fill positions for physicians, psychiatrists and other medical civil‑service roles. If a contractor’s cost exceeds the cost of filling the position with a civil‑service hire, the bill would require the department to hire the civil‑service worker instead of relying on higher‑paid contractors.

Supporters, including the Union of American Physicians and Dentists and AFSCME affiliates, said the departments have repeatedly contracted out clinical positions at rates two to three times higher than civil‑service pay, which they said wastes taxpayer dollars and reduces continuity of care. “This is a long standing problem,” said Doug Chiapetta of the Union of American Physicians and Dentists, who urged committee support. The author cited a 2020 State Personnel Board finding that CCHCS (Correctional Health Care Services) had improperly justified contracts and had not sought civil‑service positions to meet staffing needs.

No organized opposition appeared at the hearing. Supporters said the bill would restore workforce continuity, lower contractor costs and prioritize civil‑service hires for patient care continuity. The committee moved the bill and referred it to Appropriations; the hearing summary recorded the motion as passed and the bill was placed on hold for add‑ons with a recorded committee tally of six ayes at roll close.

The bill also would require CDCR and DSH to report data about cost analyses performed, contractors used and civil‑service staffing levels. Supporters said the reporting requirement will create transparency about contractor use and vacancy rates in medical classifications.