A Performance Audit
A Comprehensive Forensic Audit of Medical Services for Inmates Provided by The University of Texas Medical Branch at Galveston
December 2024
Overview
The University of Texas Medical Branch (UTMB) contracted with the Texas Department of Criminal Justice (TDCJ) and the Texas Juvenile Justice Department (TJJD) to offer medical services to TDCJ inmates and TJJD youth through the Correctional Managed Health Care program (Program).
UTMB charged the Program $1.8 billion during the audit scope of September 2021 through February 2024. Of that amount, $1.7 million (0.1 percent) were for unallowable costs. The Program contracts included provisions explicitly prohibiting spending on relatively low-cost items such as flowers, food items, and gifts and awards. However, the contracts provided minimal guidance on areas that significantly affect Program costs, such as employee compensation (including contracted services) and off-site medical services.
UTMB’s contracts were structured such that all financial risk was assumed by TDCJ and TJJD, since the contracts explicitly required both TDCJ and TJJD to cover any deficit identified upon UTMB’s fiscal year end.