Members of the House Corrections and Institutions Committee pressed the Vermont Department of Corrections and its contractor Wellpath on Jan. 15 for clearer accounting after staff described recent increases tied to the DOC–Wellpath medical services contract.
The contract is structured as a three‑year agreement with the option to extend for two additional years. Aviva Tabra, the department’s executive director for health, wellness and engagement, told the committee that payments are calculated from a per‑member‑per‑month (PMPM) rate multiplied by an average daily population (ADP) used to set the annual budget. "We pay them the same amount every month," Tabra said, describing the monthly payment and the year‑end reconciliation that returns unspent funds to the state.
Committee members asked for dollars tied to recent budget adjustments. One committee member reported the ADP‑driven portion at about $3,300,000 and a separate enhanced substance‑use disorder (SUD) staffing increase at roughly $1,200,000; presenters confirmed those two separate sources contribute to the amendment. Several members cited larger headline figures observed in budget documents and asked staff to reconcile the totals and provide line‑by‑line detail.
Lawmakers also pressed whether the contract contains incentives to improve efficiency and health outcomes. Tabra said there are "pay‑for‑performance" metrics and continuous quality‑improvement requirements, but that the potential supplemental payments tied to performance are small relative to the total contract budget.
The philosophical question of bringing medical services in‑house surfaced during the discussion. A committee member said he had requested earlier cost comparisons and voiced a principled preference for state employment of correctional health providers. DOC staff pointed to past analyses presented to oversight committees that estimated substantially higher costs—committee testimony referenced figures "around $90,000,000 to $100,000,000"—and agreed to locate and share the underlying analysis.
DOC and Wellpath staff pledged to provide the committee with more specific numbers and breakdowns of the recent budget adjustments. The committee signaled it expects follow‑up information and additional slides on the Budget Adjustment Act (BAA) amendments and said it would continue oversight in upcoming meetings.