Letter From FSSA Regarding Negotiations to Privatize Richmond State Hospital

January 24, 2008 The letter informed the sole bidder to a Indiana Family and Social Services Administration (FSSA) procurement (RFP 6-59) to privatize Richmond State Hospital that the negotiations were officially terminated. FSSA Secretary Mitch Roob said that the state now plans to continue operating the hospital while the FSSA develops a recovery-based model for people with severe mental illnesses. In addition, Secretary Roob said that the state faces lower tax revenues and that each agency was asked to cut spending. Transferring operations of the 300-patient Richmond State Hospital was projected to cost between $3 million to . . .