Potential involvement of UC in CA prison healthcare: Neither simple nor novel
***I’ve been playing phone tag with California Department of Corrections and Rehabilitation (CDCR) throughout the week. Once I get a chance to talk to a representative I will post their comment.***
With the state of California facing a deficit in the tens of billions and the University of California down hundreds of millions, a partnership that saves the state money and potentially redistributes it to education sounds fantastic.
According to a report by the telemedicine company NuPhysicia, Governor Arnold Schwarzenegger’s proposal that UC take over California’s prison health care could save the state up to $16 billion over the next 10 years– money which UC officials said could be redistributed back to the state general fund and from there to education.
But the idea is far from simple and hardly novel.
While the UC Board of Regents discussed the possibility of university-run prison health care during their March meeting, the idea was first brought up before the board in 2005.
In its 2005-06 analysis of the state budget bill, California’s Legislative Analyst’s Office said a health care partnership between the California Department of Corrections and the University “has merit, but the proposal is not fully developed.”
“Some of the potential benefits include (1) continued learning for prison health care staff; (2) opportunities for clinical research in a unique health care environment; and (3) more cost-effective health care delivery,” the analysis states.
Because no specifics as to how University involvement in California state prison health care would work were finalized at that time, the office declined to make any recommendations.
The office has yet to take an official position this time around for the same reasons.
“The governor hasn’t put forward a concrete proposal,” said Aaron Edwards, a fiscal and policy analyst for the office. “He has just outlined in concept of what could happen.”
The report is only one factor in the web of “maybes” and “mights” that comprise the debate and has infuriated the Union of American Physicians and Dentists, which is affiliated with the American Federation of State, County and Municipal Employees.
First presented at the March UC Regents meeting, the report suggests that UC manage California’s prison health care system, including supplying UC health care professionals and hiring other staff to run the system and using telemedicine, i.e. having doctors meet with patients via teleconference.
According to NuPhysicia, its recommendations could save the state $4.3 billion over the first five years of their implementation and between $12 and $16 billion over the next decade. California currently spends $2.4 billion a year on prison health care, or $41.25 per inmate each day.
The first point of contention the union has voiced against the proposal is that there is a conflict of interest at its base– UC President Mark Yudof was president of UT from 2002-08 and John Stobo, who is currently senior vice president for health sciences for UC, was President of the UT Medical Branch at Galveston. In 1997, the same year NuPhysicia was founded as part of the branch, Stobo began his tenure. NuPhysicia is used in Texas’s UT-run prison health care system.
Union members have also said that the report’s recommendations won’t provide adequate health care for inmates and in the end, the recommendations will cost the UC money.
The recommendations could cost jobs. UC spokesperson Lynn Tierney said that the proposal could lead to layoffs of current prison medical personnel about five years after its implementation as a result of consolidating UC health care and California state prison health care positions. At present, California has 73.5 medical personnel per 1,000 inmates compared to 29 medical personnel in Texas.*
At the May regents meeting, Stuart A. Bussey, the union’s president, said the medical cases in prison are more difficult than UC health care professionals might expect. Among other problems, 40 percent of prisoners have Hepatitus C and HIV is rampant.
“These are very complicated pharmaceutical patients,” he said.
He also warned against the use of telemedicine, saying it can lead to doctors not noticing patients’ health problems such as heart murmers and making false diagnoses as a result of not being in direct physical contact with patients.
“It’s kind of a dicier situation when you don’t have your five senses,” he said.
But Stobo stressed that telemedicine would not replace the traditional patient-doctor relationship.
“Telemedicine is an enabler, it’s a factor,” he said. “It’s not a solution, it enables solutions.”
Safety is also an issue according to Scott Anderson, a physician in the department of mental health with the California Department of Corrections and clinical professor at UC Davis, who said inmates can behave more aggressively than other patients. After the regents’ session on prison health care at their May meeting, he shared a cautionary tale about a prisoner slashing a nurse’s face with a razor. When he shared the anecdote during a two-hour discussion held by the regents later that day, he said the prisoner had slashed the nurse’s neck.
Anderson went on to say that prisoners are more likely to file lawsuits against health care professionals than other patients. He added that it was only after he entered prison health care that he was sued for malpractice–twice, in fact. Ultimately he concluded at the meeting that the costs of such liabilities could trickle down onto the backs of UC students who have already experienced a 32 percent fee hike this year.
Regent Sherry Lansing, who chairs the Committee on Health Care in California State Prisons established by the regents at their March meeting, said the UC would not consider the plan unless it were cost effective, adding that the committee’s purpose is to decide whether UC will enter prison health care and, if so, how. NuPhysicia’s model is just one option, she said.
If UC takes over prison health care, Texas, the birthplace of NuPhysicia, is the most analogous example to how such a relationship might play out.
Texas and California have similarly sized prison populations– 168,105 inmates in Texas and 166,556 in California, according to theinmatelocator.com. Likewise, the UT and UC systems are close in size with 141,134 and 159,000 undergraduate students, respectively.
Both states’ prison health care systems have, at one time, been in federal receivership, meaning they have been managed by a federally-appointed official for not meeting constitutionally-mandated health standards. California’s prison health care system has been under such oversight since 2006. Such a problem can be fixed according to Tierney, who said the 1993 university take-over of the Texas system led to the quality of prison medicine meeting constitutional standards.
A similar arrangement could be fruitful in California, Edwards remarked.
“According to an internal study (the University of Texas) has done, they’ve decreased costs,” he said, before adding that the office has not been able to independently verify the findings of the study.
Texas may be the most relevant example for California, but it is not the only one. At least five states currently have university-run prison healthcare: Louisiana, Florida, Georgia, Texas and New Jersey. The last three all do their prison health care through NuPhysicia.
Despite the prevalence of university-run prison health care, the regents are emphatically shrinking away from taking any official position. Still, they seem to have crossed-over from opposing such a plan to being more interested in following through.
“My first thought was just no way is this gonna happen,” said Regent Norman Pattiz who is a member of the committee. “Except now that I’ve gotten more information about it, I’m feeling a little less no-way.”
In addition to considering having UC manage California prison health care, the regents say they are open to options such as the UC serving as a consultant for state prison health care and starting a fellowship program through which UC doctors would become involved in state prison medicine.
The timing of the final decision is as up-in-the-air as the decision itself. Lansing said there will not be a decision within weeks, nor will the regents take years to come to a conclusion.
“I don’t know where this is heading. We are committed to looking at this in a very thorough way,” she said. “I don’t want to be held to a time line.”
* The Statesman reports that in Texas, 363 prison health care workers were recently laid-off as a result of state budget cuts–not necessarily because of UT’s involvement in Texas state prison health care.
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Audio from Committee on Investments Meeting
A few weeks ago, I attended the Wednesday portion of the March UC Regents’ meeting. I was the last press person to leave and had the opportunity to sit in on the last open session of the day: the committee on investments meeting. I think my audio recording of the meeting is the only one available, though the other open sessions of the regents’ meeting were recorded. Read my post about the committee investments meeting. The minutes for the March regents’ meeting do not appear to be available yet.
Part One of Committee on Investments meeting, 3/24/2010
Part Two of Committee on Investments meeting, 3/24/2010
There is an unrecorded gap between the two recordings due to technical difficulties I had during the meeting.
Last day of March UC Regents meeting
The hot topic today is the UC’s involvement in California state prison healthcare and whether the university should take over prison healthcare for the state. (Read the L.A. Times article.)
I won’t be at the meeting today so I won’t be blogging about it but here’s the link to the UC Regents Live(blog).
Also, some articles about yesterday’s meeting:
Finally, the last session of Wednesday’s meeting: committee on investments
Did you know that spending per student actually has little to nothing to do with how much the university actually spends on each student, or that the UC’s investments function on a different plane than it’s funding of student services? These are things I learned during the committee on investments meeting, which was the very last open session of the Wednesday portion of the regents’ meeting, after waiting through hours of closed session Wednesday afternoon.
The meeting was particularly interesting in that it was so much more relaxed and intimate than other open sessions. The committee met in a small conference room as opposed to the large auditorium used for the better part of the day and those in attendance were relaxed enough to joke around and show their personalities. Magnifying the intimacy was the fact that I was also the only non-administrator or consultant there by the time the meeting ended at 7:30. With the exception of one photographer, all other journalists had left when the closed session portion of the day began.
Seeing regents and others so laid-back was a bit bizarre for me, since they were stone-faced during all the other meetings. Also, the regents in particular have a reputation for being inaccessible. As interesting as the session was from an anthropological perspective, I understood little of the content discussed by the committee. I don’t know a lot about finances or investments—yet. I’m learning. Fortunately, after the meeting I had an opportunity to speak with some UC administrators: UC Chief Investment Officer Marie N. Berggren, Managing Director of Investment Risk Management for UC Jesse Phillips and UC Chief Financial Officer Peter Taylor.
Question and Answer
Q: Berggren spoke about spending per student at one point during the session. How does spending per student factor into the UC’s investment performance?
A: “Spending per student” actually has little to nothing to do with how much the university spends on each student, Phillips said. Rather, the number is the quotient of endowment spending per year divided by the number of students in the UC system—it’s a ratio.
Q: How do UC’s investment strategies compare to those of other universities?
A: In the past, universities like Harvard and Yale far out-performed the UC in their investments because they engaged in high risk investing, which has the potential to yield higher returns. The UC keeps its liquid assets, or assets that can easily be converted into cash, separate from its investments.
Berggren illustrated this comparison by explaining that some universities took portions of their general operations funds—i.e. the money that’s spent to make a university run for a year—and put those portions in the endowment. When those universities’ endowments declined in 2008, they didn’t have enough money to cover their operating budgets.
Tayor described UC investment strategies as “very conservative” compared to other higher education institutions, mentioning that big, Ivy League-level universities were calling up his banker friends asking for $50 million loans to cover their payrolls when their endowments dipped.
Currently, Berggren says, there is a survey floating around asking universities what proportion of their operating budgets they invest in endowments. Responses range from none to 20 percent.
Q: If UC’s investments are doing so well, why is UC doing so poorly financially?
A: The answer to this question is not exactly intuitive to me. Phillips said investments and finances are not one and the same and the UC’s investments function somewhat separately from UC finances as a whole.
What the separateness of investments and overall finances means for the UC is that, when the investment market is doing well, UC investments do well, even if the economy is doing poorly. I think this is a bit too simple of an explanation, but it’s a start.
The administrators described the process of learning about UC’s financial model with a metaphor about blind men feeling an elephant: one feels the elephant’s tail and says the elephant is a rope, another feels the elephant’s leg and asserts that the elephant is in fact a tree. If you approach the UC from one angle, you’ll only get one part of the overall explanation of how the whole, big animal works. The challenge is approaching the UC from as many angles as possible and figuring out how the pieces fit together.
Some extra background and random tidbits:
- The UC will be investing in real assets such as timber in the future.
- The UC has three types of investment funds: pension fund, endowment fund, short-term investment pool (“cash”)
- Money in investment funds is legally bound for certain uses, at least most of the time. (I don’t know if there may be exceptions to this rule.) For example, endowment money is earmarked and legally bound for certain uses such as the funding of endowed chairs. The pension funding can’t be used for anything but pensions.
Public comment period and responce of UC Regents, Administrators
The public comment period was centered on the racially charged incidents at UC San Diego and other campuses, though one student who spoke focused on homophobic incidents UC Davis and UC Riverside. Also, AFSCME union members discussed reductions in their retirement benefits.
Following the public commentary was a period of time during which the UC Regents and other administrators and state officials in attendance responded to the campus incidents. Their response period was followed by a final response from UC Student Association President Victor Sanchez and Black Student Union Co-chairs David Ritchardson and Fnann Keflezighi (UCSD chapter).
***
Public comment period
Frequently used phrases and memorable quotes:
Students called campus climate issues such as displays of racism and homophobia “toxic.”
Black Student Union leaders and other students who spoke often introduced their comments by saying, “I stand in solidarity with the Irvine 11,” referring to the 11 students arrested on February 26 for interrupting a speech by an Israeli Ambassador at UC Irvine.
One student said, “If education is a business, then listen to your customers.”
UCSD racially charged incidents
Read an article explaining the incidents here.
One UCSD student said, “As a black student at UC San Diego, I’m not a student but a survivor.”
BSU Vice Chair Fnann Keflezighi struggled to hold back tears as she recounted black students who she had recruited to come to UCSD telling her that they regretted going to a school with such a hostile environment.
Proposition 209
Many who spoke brought up Proposition 209, a 1996 ballot proposition opposed by affirmative action proponents that made it illegal for public institutions to consider race, sex or ethnicity.
Monica Smith, a civil rights attorney from BAMN, called Prop 209 unconstitutional and said the UC Regents should speak out against it. She said that the UC Regents taking a stand against prop 209 “would send a very strong message to the right wing and hte racists on these campuses.”
AFSCME retirement benefits
A representative of AFSCME said the union believes UC was using the economic downturn as an excuse to reduce members’ retirement benefits while UC executives still get bonuses.
“UC even asked the IRS to increase pension benefits for certain UC executives,” the representative said. “Get your priorities straight. Reducing retirement benefits will disproportionately hurt employees who don’t earn enough to save.”
***
UC Regents and other administrators respond to public comment
UC Regent Russell Gould responds to the public comment period first. “We hear your pain frustrations anger and fears,” he said. Someone from the audience interrupted him and called, “Time!” (During the public comment period, each speaker is limited to three minutes with the microphone, at the end of which, an administrator calls “time.”)
UC President Mark Yudof spoke after Gould. Yudof emphasized the importance of discussing the recent “expressions of bigotry” in the UC system.
“As a university we must start by recognizing that we have a problem,” he said.
However, Yudof optimistically noted that “one-third of (UC) students, notwithstanding anything you’ve heard, are low-income students,” a larger proportion than at any other research institution.
Yudof said he saw making admissions policies more holistic as a way of increasing the enrollment of underrepresented minorities and thus mitigating racial tensions.
“I want an admissions system hat is more in depth and more fair and that looks at more than grade point average and test scores,” he said.
He disagreed with suggestions that UC oppose Prop 209, which he described as “the law of the land,” adding, “We are bound to obey the law,” to which an audience member responded by shouting, “Wrong!”
Other UC Regents, administrators and state officials spoke as well.
Speaker of the California State Assembly John Pérez, who was attending a UC Regents meeting for the first time as a non-student, reflected on how he was a student activist 20 years ago, “decrying the same problems.”
***
Student leaders respond to UC administrators and state officials
A toxic environment
UCSA President Victor Sanchez and Black Student Union Co-chairs David Ritchardson and Fnann Keflezighi (UCSD chapter) spoke about how there have been past recommendations for improving campus climate that were not implemented.
Ritchardson cited a past study he called the Walter Allen Report, which he alleged gave recommendations to improve campus climate and mitigate racial tensions but that UC administrators never followed through on those recommendations.
“I’m sure (that report) is sitting on the desk of someone’s office right now,” he said. “Why haven’t those recommendations been implemented?”
Keflezighi said it wasn’t admissions policies but students’ perceptions of campus climate that caused African American student enrollment to be so low at UCSD.
“If you admit more black students, they’re not going to come to UCSD because of the hostility of this environment,” Keflezighi said, declaring that campus climate issues should have been dealt with before she became a student at UCSD.
The students called the climate “toxic.”
“We are trying to mitigate race riots here,” Sanchez said. “The conditions have become so toxic that we don’t know what’s going to happen.”
“It’s really toxic on campus and I’m not joking when I say that,” Ritchardson echoed.
The Irvine 11
The students also discussed the February 26 incident at UC Irvine where 11 students were arrested for interrupting a speech by an Israeli ambassador, conveying the UC administration’s response to the incident as a violation of free speech.
“We stand in solidarity with the Irvine 11,” Sanchez said. The audience applauded loudly. “It bothers me to see whose first amendment rights are being prioritized,” he added.
Nanette Asimov, who covers education for the San Francisco Chronicle, caught the students off-guard when she questioned the students’ distinction between the “Irvine 11” and the students who committed racist acts on the UCSD campus.
“You can’t really put two and two together,” Sanchez responded, explaining that he saw the Irvine incident as protest while the UCSD incidents were driven by “mere and utter hate.”
Yudof and Pérez said they disagreed with Sanchez’s distinction.
Some additional links related to the UC Regents meeting
A blog titled Student Activism has posted a link to a briefing on the meeting put together by UC Student Regent Designate Jesse Cheng. Cheng will be liveblogging the meeting all three days of it.
An SF Chronicle article about the possibility of the UC Regents changing a policy so they will have the ability to raise fees at professional schools more drastically. According to the Student Activism blog, Cheng has said that this proposal is not reflected in the meeting materials.
March 2011 UC Regents Meeting
The UC Regents will meet Tuesday, Wednesday and Thursday of this week at the Community Center, UC San Francisco Mission Bay. For directions to the meeting and a link to the meeting’s live Webcast of the meeting, go to the UC Regents Web site (or click here).
The meeting falls during the spring break of UC Berkeley, the UC campus closest to the location of the meeting other than UCSF itself. (Most other UC campuses are in session right now.) As a result, a large number of students and other members of the UC community who would otherwise attend the meeting will be out of the area. At the last meeting of the Faculty Seminar on UC’s Financial Future, Professor Emeritus Charles Schwartz questioned whether this week was the most ideal time to have a meeting. UC Student Association board member Ricardo Gomez raised the same concern in the March 18 Daily Californian article previewing the meeting.
The Daily Cal article states that the meeting will focus on promoting diversity in the UC system in light of recent controversial incidents at UC Davis and UC San Diego:
Last month, the UCSD administration faced backlash following an off-campus “Compton Cookout” party and the discovery of a noose in a campus library. At UC Davis, derogatory graffiti was sprayed on the campus Lesbian, Gay, Bisexual, Transgender Resource Center and cotton was placed in front of the campus’s Black Culture Center.
The meeting agenda also mentions an incident at UC Irvine, in which a speech by the Israeli ambassador to the U.S. was interrupted by students.
The Wednesday and Thursday portions of the UC Regents Meeting both start with a public comment period at 8:30 a.m. On Tuesday and Thursday, all committee meetings are open sessions, meaning the public may attend those sessions. On Wednesday, all the morning sessions are open, then about three hours worth of sessions are closed in the afternoon, and the last session of that day– a meeting of the Committee on Investments– will be open.
The topic of UC investments is very controversial, especially concerning UC pensions and the UC’s bond-selling practices. UC Santa Cruz Professor Bob Meister (political science) wrote a paper claiming that the UC uses student fees as collateral for bonds, meaning that fee increases, which are increases in collateral, improve the bond rating of the UC. The placement of the last open session on Wednesday raises similar concerns about scheduling as having the meetings during Berkeley’s spring break does. The fact that a single open session– especially one that may be very controversial– is placed after hours of closed and Regents-only sessions makes me wonder by what method each day of the UC Regents Meeting is planned. I would think that hours of closed session would cause a lot of people to leave UCSF, at least while the closed sessions are going on. Also, since a session can start as soon as the one before it ends, this last session could start at a wide range of times. I want to emphasize though that I really don’t know how UC Regents meetings are planned and the UC Regents may well have to discuss certain content before the Committee on Investments can meet Wednesday. Still, I think the question about method of scheduling is worth posing.
I plan to go to the Wednesday portion of the meetings and will try to blog live, provided I can get onto the internet. The agenda for the meeting can be found here. Click on each committee meeting to see its action items, which can each be clicked on as well to find out more about each one.
What do you think about …
What do you think about the block quote in the “President of the University of California” subsection of UC President Mark Yudof’s Wikipedia page? Witty? An abusive manipulation of information? Good? Bad? Share your thoughts.
In case the page gets corrected, click on one of the thumbnails below and scroll to the bottom of the image. The one on the top is smaller print, the one on the bottom is larger print.
Smaller print:
Larger print:
Regents Meeting, January 19-21, 2010
Here is the Meeting Agendas and Schedule for the meeting.
Action Item J1 recommends the UC come up with a new Registration Fee policy to be approved at the May 2010 Regents Meeting. (I think) changing the policy could change how registration fees are allowed to be spent. The reasoning behind the recommendation seems to be that the current wording of the policy concerning registration fees is too vague.
From the “background” section of the action item:
The Registration Fee portion of this systemwide policy provides only general guidance regarding appropriate uses of Registration Fee funds, which “may be used to support services which benefit the student and which are complementary to, but not a part of, the instructional program.”


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