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County staff flag $652,000 in alleged overpayments to Shannon; call for contract review
Summary
Tom Green County staff reported multi-year overpayments tied to a jail-medical contract with Shannon, citing roughly $209,000 in FY 2024 and $443,000 in FY 2025 and recommended meetings to renegotiate billing and verification procedures.
Tom Green County budget staff said the county has identified substantial overpayments to Shannon, the vendor running jail medical services, and recommended immediate follow-up talks to review billing and contract terms. Diana, the county budget staffer leading the indigent-health presentation, told attendees the county overpaid about $209,000 in FY 2024 and about $443,000 in FY 2025.
"I I am strongly suggesting that we have conversations with Shannon," Diana said, noting the county had already tightened procedures for verifying incarceration status and prescription delivery to reduce erroneous charges. She added that the county had spent roughly $600,000 through June this year on related services and that, if that pace continued, the county could be overpaying by a further $356,000 compared with current contract expectations.
Diana described process changes implemented after staff meetings with jail medical and Shannon, including verifying incarceration status before accepting billed charges and limiting automatic payment of prescriptions unless preapproval or generic equivalents are used. She criticized how some vendor reports present "total estimated savings" relative to gross public charges, saying those figures can be misleading because they are not tied to the county's allowable Medicare-rate liabilities.
County leadership agreed to schedule a dedicated contract review and billing reconciliation meeting. The moderator proposed tentative dates in the budget calendar and asked staff to post quorum notices and confirm availability so the court could hear from Shannon in a full budget session.
