Indiana Scraps State Hospital Privatization
February 22, 2008
|
February 22, 2008 When it became clear it would cost taxpayers too much, plans to outsource the jobs at three state hospitals where employees are represented by AFSCME Council 62 were formally dropped last month. AFSCME has said for years that all privatization efforts are costly to taxpayers. Two years ago, when Council 62 members first learned of the plans to privatize state hospitals in Richmond, Evansville and Madison, the direct care employees held rallies, put up signs and drummed up community support to defeat the proposal. David Warrick, Council 62’s executive director and an International vice president, says state officials simply … “… had to admit they couldn’t privatize the hospital without costing the taxpayers more money than it would take for the state to run it.” Under orders to cut spending, Family and Social Services Administration Sec. Mitch Roob was forced to conclude that the agency could not afford to pay as much as $3 million in upfront operating costs to a private, non-profit group that sought to operate the 600-patient Richmond State Hospital. No bids were submitted to operate the other two hospitals. Privatization could have threatened the jobs of some 300 RNs, psychiatric attendants and behavioral technicians at Richmond State Hospital who belong to Local 795. Council 62 also represents about 450 direct care workers at the other two hospitals. |
