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State Auditor Kathy McGuiness: Department of Corrections Could Have Saved $44.1 Million on Prison Prescription Costs

DOVER, DELAWARE – State Auditor Kathy McGuiness released a special report today showing that Delaware’s Department of Corrections (DOC) could potentially have saved $44.1 million over seven years on prison prescription drug costs.

“Inmate healthcare and pharmacy services is one major expense for DOC that is paid for with state taxpayer dollars,” McGuiness said. “As a licensed pharmacist, I felt it was important to look into how much DOC was spending on prescription drugs – and what I found astonished me.”

DOC has contracted with a private company called Correct RX (CRX) since 2014 to provide pharmacy services for the state’s approximately 4,900 inmates. McGuiness and her team examined DOC’s contract with CRX, as well as how much DOC spent on pharmacy services during fiscal years 2019 and 2020.

“As we reviewed the contract between DOC and CRX, we noticed that the contract was not detailed enough to tell us what pharmacy services would be purchased or provided,” McGuiness said. “Furthermore, a review of DOC’s spending in this area revealed that resources were not being used efficiently.”

McGuiness and her team contacted the state’s group purchasing organization, Minnesota Multistate Contracting Alliance Infuse (MMCAP Infuse), to see if DOC could benefit from their specialized purchasing contracts, as other state agencies have.

“We found that DOC could have saved up to $44.1 million since 2014 by using MMCAP Infuse’s contract services,” McGuiness said. “That’s nearly half of DOC’s pharmaceutical spend – and it’s an enormous amount of taxpayer money that could have gone to other programs.

“DOC’s goal in this area should be providing quality healthcare to inmates at a reasonable cost,” McGuiness continued. “My special report shows that goal is achievable, and my hope is that DOC will consider my two detailed recommendations to do exactly that.”

To read McGuiness’ new special report, titled “Millions in Pharmaceutical Savings are Achievable Within Delaware’s Correctional Facilities Without Compromising Services,” click here.

Learn about the Delaware Auditor’s Office at https://auditor.delaware.gov.

Contact: Alaina Sewell, Executive Assistant, Alaina.Sewell@delaware.gov, 302-857-3931