State says health centers producing savings

Phil Drake
Great Falls Tribune

HELENA -- Department of Administration officials defended the effectiveness of state-run health clinics Tuesday, saying they have lowered cost, increased access to care and saved the state $6.8 million since they opened in 2012.

They said the cost per visit at Montana Health Centers was $92.52 compared to $155 in the private market and added radiology and scanning services were cheaper and have paid $3.2 million to community providers since 2012.

The claims come in response to a negative state audit in July that found the six clinics, operated by Nashville-based CareHere, have failed to document measurable improvements in the health of state workers.

It noted that as of August 2016, the state spent more than $26.1 million to run the clinics, which offer medical services to state employees. 

“To be clear there are savings and we can prove those savings,” John Lewis, department of administration director, told members of the Legislative Audit Committee during an audit update.

Auditors had said there is no proof the clinics have saved the state any money — despite claims to the contrary by the governor's office. It said that partly due to poor record keeping that called the accuracy of any financial analysis into question.

Since the first clinic opened in 2012, 180,000 primary care visits have been made, administrative fees were reduced by 18 percent in 2016, resulting in a savings of $360,000 and the contract for health center lab services has saved more than $1.7 million in two years, the Department of Administration stated.

The first of Montana's health centers opened in Helena amid the national debate over revamping the country's health care system. The clinic, established under the administration of then-Gov. Brian Schweitzer, was heralded as the nation's first government-run health center.

Since then, five other states — Alabama, Kentucky, Tennessee, New Mexico and Missouri — have opened similar clinics.

The other health centers in Montana are in Anaconda, Billings, Butte and Missoula.

Officials said Tuesday they will close the Miles City facility on Friday, saying it never generated enough patient traffic.

“We tried hard to make it a feasible place,” said Marilyn Bartlett, director administrator of the Health Care and Benefits Division for the Department of Administration. “We were never able to get utilization as high as we wanted.”

She said the facility was averaging 14 visits a week, adding there were plenty of other clinics and resources in the area.
 

John Lewis

This story contains information from the Associated Press.