Tuesday, August 17, 2010

Recommendation: Don't Privatize

The Utah Public Employees Association attended the Executive Appropriations today at 1:00 p.m. at the Utah State Capitol. The Public Consulting Group presented data on the feasibility of privatizing the Forensic Unit at the State Hospital; the privatization of the Woodland building; and privatization of the Transitional Living Center at the Utah State Developmental Center. The study focused on three areas of feasibility: Financial savings, organization and service consequences.

The study results for the USH Forensic Unit found $1.7 million in savings due to reductions in employee total compensation. However, an increase in staff turnover could negativity impact continuity and quality care for patients.

The USDC TLC & Woodland units would save $117,000 in gross savings through privatization. Savings from reductions to employee total compensation would increase staff turnover. However, it would also negatively impact continuity and quality care for patients.

The recommendation from the study is that it may be financially possible to privatize the units for a cost savings, but reductions in employee total compensation can adversely affect continuity and quality care for patients. The recommendation made by Public Consulting Group is that the privatization of the USH Forensic Unit and USDC Semi – secure Units should not be pursued.

Todd Losser
UPEA Representative