A multimillion dollar deal to privatize a public psychiatric hospital in Terrell has been killed after a state audit revealed contract irregularities by the Texas Health and Human Services Commission.
According to the Austin American-Statesman the State Auditor's Office released a report Wednesday detailing how the process to privatize Terrell State Hospital bypassed procurement laws, used a flawed scoring system and did not consider if the state was receiving the most cost-effective deal.
The report says that Health and Human Services Executive Commissioner Kyle Janek played a role in some of the contract problems.
The tentative contract was approved last October, but Janek stopped talks with Correct Care Solutions in late February about six weeks after the audit began.
Janek says that he halted the contracted because he felt that a deal that would be good for taxpayer's could not be reached.
