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Psych hospital privatization rejected


The Department of State Health Services has rejected a bid by Geo Care to privatize Kerrville State Hospital.

Last year, legislators told State Health Services it had to solicit proposals from mental health providers that wanted to run one of the state-run psychiatric hospitals. Those proposals had to show that the bidder could run the hospital for 10 percent less then its current budget.

Boca Raton-based Geo Care was the only company to submit a proposal. Its bid was to run Kerrville State Hospital.

But the state has rejected Geo Care’s bid, according to an email sent to hospital employees today by Kerrville State Hospital Superintendent Jay Norwood.

“I have just learned that Commissioner (David) Lakey has rejected the proposal submitted to privatize one of our state hospitals. HHSC Executive Commissioner (Kyle) Janek is in agreement with this decision and the proposal will not be moving forward,” Norwood wrote. “Therefore, at this time, there is no plan to privatize Kerrville State Hospital or any other state hospital in Texas.”

See here and here for the background. This was a bad idea from the get-go, and I’m glad it’s been canned. And to think, the decision was made before this happened. Good call, folks.

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