As The Criminal Justice System Changes, So Does A Private Prison Giant

Source: Lydia O’Neal, International Business Times, December 5, 2017

At a halfway house in southeast Pennsylvania last May, a former prison inmate on his way to reentering society died of a heroin and fentanyl overdose, the eighth person to die of a drug overdose there since the start of 2016, and the fifth in the first five months of 2017 alone, the Reading Eagle found in a November report that documented egregious mismanagement. … The Pennsylvania facility, known as the Alcohol & Drug Addiction Parole and Probation Treatment center, or simply ADAPPT, was acquired in April by politically-connected GEO Group Inc., better known for its private prison management. The previous manager, now a GEO subsidiary, is Community Education Centers, a private contractor known for its halfway houses. (GEO declined to comment on Zdanowicz’s criticism of ADAPPT.) The April CEC acquisition followed GEO’s 2010 purchase of Cornell Companies, another private prison and rehabilitation firm that owns facilities focused on drug treatment and counseling.

… GEO has been active on the federal lobbying front since at least 2002. In the second quarter of 2015, the firm began lobbying Congress on “the promotion of the benefits in the use of public-private partnerships for the delivery of secure residential care, community reentry and supervision [and] offender rehabilitation,” federal lobbying forms show. It has continued to promote such partnerships. … Many have advocated for the treatment of drug addiction within U.S. prisons as a means of stemming the crisis. … But given the track record of for-profit prisons, including a February University of Wisconsin-Madison study that found private prisons to be more expensive because they keep inmates behind bars for longer and don’t reduce recidivism, many critics are uncomfortable with the idea of such companies handling inmates’ addiction treatment. …

Related:

GEO Group closes $360 million acquisition of Community Education Centers
Source: Cindy Kent, Sun-Sentinel, April 6, 2017

GEO Group Inc. announced the closing of its $360 million acquisition of Community Education Centers, a national provider of rehabilitative services in reentry and in-prison treatment facilities as well as management services for county, state, and federal correctional and detention facilities.  The Boca Raton-based company, a global real estate investment trust specializing in the design, financing, development, and operation of correctional, detention, and community reentry facilities, acquired New Jersey-based CEC for $360 million in an all cash transaction, excluding transaction related expenses. GEO plans to integrate CEC into GEO’s existing business units of GEO Corrections & Detention and GEO Care. …

Geo acquires rehabilitation company for $360 million
Source: Marcia Heroux Pounds, Sun-Sentinel, February 22, 2017

Boca Raton-based prison operator Geo Group announced Wednesday it has agreed to acquire Community Education Centers, a private provider of rehabilitation services, for $360 million in cash. The transaction would make Geo the largest provider of prison rehabilitation services in the country, said George Zoley, chairman and CEO, on a conference call Wednesday with analysts. Zoley also said that Geo expects “an escalation” in the need for detention beds under President Trump’s immigration and border security policies. Geo is the largest provider of detention services for Immigration and Customs Enforcement, the Federal Bureau of Prisons, and U.S. Marshals Service. …