Category Archives: Asset.Sale/Lease

For-profit prison company, CoreCivic, looks to build state facility

Source: Anne Galloway, VTDigger, January 16, 2018
 
A private company that owns and manages prisons is looking to build a 925-bed facility proposed by the Scott administration.  CoreCivic, formerly Corrections Corp. of America, which owns 61 facilities in the United States, is lobbying lawmakers and the governor’s office for a contract to build and lease the facility to the state, according to a statement from the company.  CCA and the new company have been criticized for poor management of state and national prisons and have been the subject of several national exposes.  Jonathon Butler, director of public affairs for CoreCivic, said the company would not be operating any facility in Vermont. …

America’s Rural Hospitals Are Dangerously Fragile

Source: Brian Alexander, The Atlantic, January 9, 2018

… Last November, however, Circleville’s voters chose another direction, one that, in other places, has resulted in an economic hit to the community—mostly in the form of job losses and stagnant wages—as well as a lowered quality of care. At the urging of city and county leaders, and Berger’s administrators, residents voted to allow local politicians and the hospital’s board to begin a process to turn Berger, one of the last publicly owned and operated hospitals in the state, into a nonprofit private corporation. Following that, Berger would most likely be integrated into a larger regional system, probably the Columbus-based nonprofit Ohio Health, with which Berger has an ongoing relationship. …
 
… Hospitals have been struggling—especially independent public and/or nonprofit hospitals located in smaller cities and rural towns. Last year, for example, the National Rural Health Association, a nonprofit, estimated that 673 rural facilities (with a variety of ownership structures) were at risk of closure, out of over 2,000. And with the new tax legislation, and events like the merger of the drugstore chain CVS and the insurer Aetna, the turmoil looks to get worse. In response, stand-alone nonprofit hospitals have been auctioning off their real estate to investors, selling themselves to for-profit chains or private-equity firms, or, like Berger, folding themselves into regional health systems. …

Champaign County Board votes to put nursing home up for sale

Source: Tom Kacich, News-Gazette, January 9, 2018
 
Champaign County Board members voted Tuesday night to put the county nursing home up for sale.  By a margin of 13-8, with Democrats Pattsi Petrie, C. Pius Weibel and Shana Jo Crews joining all 10 Republicans, the board voted to issue a request for proposals from private operators to purchase the county-owned facility in east Urbana. … Among the terms to any sale of the nursing home: … — The purchaser would assume the existing collective-bargaining agreement between the nursing home and the AFSCME union.  — The purchaser must agree to rehire all existing employees who pass a background check, not terminate 10 percent or more of the employees within the first 60 days following the closing date and not 20 percent or more of the current employees during the first six months after the closing date, all at their current salary levels with benefits similar to those currently received. …

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County board to get first look at proposal for sale of nursing home
Source: Tom Kacich, News-Gazette, October 10, 2017
 
Champaign County Board members will get their first review tonight of the proposal for the sale of the county-owned nursing home.  The agenda for the board’s committee-of-the-whole meeting includes an item calling for the release of a request for proposals for a privately owned firm to buy the 12-year-old facility in east Urbana. If the board approves the RFP this month, the sale of the home could be completed this winter. … The proposed request for proposals for the sale of the facility carries a number of stipulations: … That the purchaser assume the existing collective bargaining agreements at the home with the AFSCME employee union. …

Patient advocates back county ownership of nursing home
Source: Debra Pressey, The News-Gazette, March 29, 2017

Selling the Champaign County Nursing Home could lead to staff reductions, poorer care and service cuts, a group of advocates for medical patients and retirees contended. Gathering less than a week before voters will be asked to weigh in on two public policy questions — whether they support selling or disposing of the financially ailing nursing home or a tax increase to help keep it going — the Illinois Alliance for Retired Americans, Champaign County CARE, Champaign County Health Care Consumers and others Wednesday urged voters to get behind the option that will keep the nursing home in the county’s hands. Research from Center for Medicare Advocacy, Kaiser Family Foundation and others have demonstrated that nursing home ownership matters when it comes to patient care and staffing levels, said Champaign County Health Care Consumers executive director Claudia Lennhoff. … “For-profit facilities, particularly those owned by multistate chains, are more likely to reduce spending on care for residents and to divert spending to profits and corporate overhead,” the Medicare center said in a report. … A 2011 analysis of the 10 largest for-profit nursing home chains found they had the lowest staffing levels and highest levels of deficiencies between 2003 and 2008, Lennhoff said. She also said a new owner — especially a larger and/or for-profit one — who would fill more beds at the nursing home, even increasing the Medicaid census in the process, could be a “recipe for disaster.”

… Lennhoff said Champaign County doesn’t have to look any farther than neighboring Vermilion County to see what can happen when a county disposes of its nursing home. After the county sold its Vermilion Manor Nursing Home to FNR Healthcare Group in 2013, the county was caught by surprise when 39 employees were cut by the new owner, she said. Now called Gardenview Manor, the Danville nursing home was hit by the Illinois Department of Public Health in January for two “type A” violations, which mean “a substantial probability that death or serious mental or physical harm will result or has resulted” in the past three months.

Kansas legislators remain skeptical of new Lansing prison deal

Source: Allison Kite, Topeka Capital-Journal, January 11, 2018
 
Legislators remained skeptical Thursday of a plan backed by Gov. Sam Brownback to rebuild the state’s oldest, largest prison.  …. The council is expected to take a vote on the proposal next week, but legislators have continually voiced concerns over the project’s cost and CoreCivic, the private prison operator that would build it. The state would still operate the prison. …. Ward said he was concerned about correctional officers’ safety because the proposal claims to require 46 percent fewer staff members. The Kansas Department of Corrections did not engage the Kansas Organization of State Employees, which represents officers, on the project. ….

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Opinion: Bring Lansing prison proposal out of the dark
Source: Lisa Ochs, Kansas City Star, December 17, 2017
 
That project is the proposed new prison that would replace most of the current Lansing Correctional Facility. The Kansas Department of Corrections, or DOC, is pushing a lease/purchase arrangement under which private contractor CoreCivic would build the new structure and lease it to the state for 20 years. … After limited legislative review of this scheme, the Legislature’s Joint Committee on State Building Construction refused to endorse this approach. … Legislators also expressed concerns that the CoreCivic contract would be a first step toward privatization of prison operations in Kansas. As State Sen. Laura Kelly of Topeka pointed out, there is little interest in the Legislature in privatization. …

Kansas wants private prison company to build Lansing replacement
Source: John Hanna, Associated Press, November 30, 2017

Kansas plans to have the biggest private prison company in the U.S. build a replacement for the state’s oldest and largest correctional facility and pay for the project by leasing the new prison from the firm for 20 years. The state Department of Corrections announced Thursday that it selected CoreCivic Inc., based in Nashville, Tennessee, as its contractor for the new prison for 2,400 inmates in Lansing, in the Kansas City area. … Republican Gov. Sam Brownback’s administration contends a lease-purchase deal is the most cost-effective way to build a new prison, even after a state audit in July questioned that assessment. Two legislative committees still must review the plan, and legislative leaders and Brownback must formally sign off next month for the two-year, $170 million project to move forward. …

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Atlantic City Water Services to Remain in Public Hands

Source: Jocelyn Alcox, AFSCME Now, January 9, 2018
 
Members of AFSCME New Jersey worked hard to make sure Atlantic City’s water system remains in public hands. Just before the Christmas holiday, the state announced that it will not lease or sell the city’s water system to a private company. This followed more than a year of concern from residents and activists about the fate of the Municipal Utilities Authority (MUA), and is due in large part to the hard work and dedication of AFSCME members in and around Atlantic City. “We immediately knew we had to do something,” said April Gould, president of Local 3408. “Atlantic City is already struggling and outsourcing the water would have been disastrous.  AFSCME members have always been on the front lines of community issues and this time was no different. This is the community that we live in and that we work in, you can’t just leave those problems up to somebody else and hope they work out.” …

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State says it won’t sell or lease Atlantic City MUA to private company
Source: Erin Serpico, Press of Atlantic City, December 20, 2017
 
Following more than a year of concern from city residents and local activists about the fate of the city Municipal Utilities Authority, the state announced it will not lease or sell the water system to a private company. … The state has previously urged the city to dissolve the MUA, but the city either pulled or voted down measures to do so before the state took over in November 2016. For months after, more than 100 people from civic associations, the local chapter of the NAACP, Food and Water Watch and a group called “AC Citizens Against the State Takeover” knocked on doors and collected signatures to protect the water system from being sold. …

Atlantic City Votes To Protect Its Water From Chris Christie
Source: Daniel Cohen, Alternet, July 14, 2017
 
On Tuesday, the Atlantic City Council unanimously passed an ordinance to ensure its residents get to vote on any action by the state to sell or lease the city’s water system.  Why might New Jersey sell or lease Atlantic City’s water? Well, because Christie has been laying the groundwork for such a deal for years. In 2014, he passed a statewide law making it easier for struggling municipalities to sell off water infrastructure. Turns out, Atlantic City has been struggling—mainly due to a rash of casino closures, including Trump’s failed Taj Mahal. Last summer, after the state bailed the city out, Christie made it loud and clear there were strings attached: “I want [the loan] secured by every asset they have, so that if they don’t pay it, I get to take the assets, sell them and pay you [the taxpayer] back.” Late last year, he delivered on that promise and took control of the city’s assets and most of its decision-making power. …

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Why is a Private Prison Corporation Doing Business with the IRS?

Source: Donald Cohen, Huffington Post, December 8, 2017

… CoreCivic now owns what appear to be its first buildings that have nothing to do with incarceration. In September, the publicly traded corporation that owns and operates prisons, jails, immigration detention centers, and halfway houses bought properties in North Carolina and Georgia that are leased to the Internal Revenue Service (IRS) and Social Security Administration (SSA). In their words, the deals are part of a plan to make “additional investment via acquisition in mission-critical government real estate asset classes outside of our traditional correctional detention residential reentry facilities.” In other words, CoreCivic wants to be a landlord of all types of government buildings. … We shouldn’t be surprised. If you recall, CoreCivic used to be Corrections Corporation of America, which rebranded last October not only to outrun bad PR but also to provide a “wider range of government solutions” and “better the public good.” And several years ago, along with primary competitor GEO Group, they changed their corporate legal status to a real estate company—technically, a Real Estate Investment Trust (REIT)—to score a massive tax break. In 2015 alone, the corporations used their REIT status and other avenues to avoid a combined $113 million in federal income taxes. … But CoreCivic’s latest move highlights the newest private prison trend, towards building, owning, and leasing real estate—and they’re selling it hard. …

Group pushes for answers over potential sale of library building

Source: WLWT, December 12, 2017

Potential plans to close the Cincinnati Library’s north building has sparked some concerns, and a local group is demanding answers. The “Our Library, Our Decision!” coalition is on a mission to stop the library from the sale. More than 20 people with the group attended the library board’s monthly meeting Tuesday, expressing their concerns. “We called out the board and administration as, at this point, being basically incompetent and untrustworthy,” said member Charles Campbell. … Including Campbell, 3,000 people signed a petition opposing the potential sale, which the coalition hand-delivered to the board. …

MT special legislative session works late into night to finalize budget deal

Source: Mike Dennison, KRTV, November 16, 2017
 
Montana lawmakers worked into the early-morning hours Thursday to fashion a deal to fill the state’s $227 million budget hole, agreeing to a package of spending cuts, fund transfers and one, big charge on the state workers’ compensation fund.  The plan also includes at least $15 million from a fund controlled by the company that operates Montana’s only private prison – and that can be accessed only if Gov. Steve Bullock negotiates a new contract to extend the prison contract with CoreCivic. … The 600-bed private prison near Shelby is in Jones’ district, and CoreCivic’s contract expires in 2019.  The special session, called by Bullock to balance the state’s budget, started Tuesday and wrapped up after two long days of back-and-forth negotiating primarily between the Democratic governor and the Republican majority at the Legislature. …

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MT Republicans plan to expand special session agenda
Source: Mike Dennison, KXLH, November 8, 2017
 
Legislative Republicans plan to expand next week’s special session agenda, to include more options to fill Montana’s $227 million budget hole, MTN News has learned – including $32 million from an account controlled by the owner of the private prison in Shelby. … GOP leaders are drafting a proposed expansion with nine new items, including: Using $32 million from a fund set up to help the state buy the privately run prison at Shelby. The owner of the prison – CoreCivic – controls the money, but has offered to give it to the state — if the state agrees to extend the company’s contract, for another 10 years.  …

Corrections pledges to increase private prison oversight
Source: Associated Press, November 30, 2016

The Montana Department of Corrections has pledged to strengthen its oversight of a private prison in Shelby after auditors recently found weaknesses in the agency’s monitoring of guard staffing levels, health care services and food service. Department officials said checks have already been increased to ensure mandatory security staffing levels are being met, and they will build more comprehensive checks in the other areas. The Legislative Audit Division did not find any major violations at the Crossroads Correctional Center when auditors conducted surprise visits, analyzed prison data and spoke to former inmates. However, the auditors did report that the department’s on-site contractor assigned to monitor the prison’s health services does not verify that inmates receive timely access to medical care. The department also has not defined the level of review it expects from the contractor and conducts only limited reviews of health services data from the prison, the November report found. … But DOC director Mike Batista said in his written response that the department has already set up reviews of shift rosters, payroll logs, video reviews of staff and other checks as a result of past violations discovered in audits. Batista pledged to increase the review of shift rosters each month. The department also “will build a more comprehensive reporting and compliance check for medical access and timeliness requirements” for its health care monitoring contractor, Batista said. He added that the department’s dietician will review the prison’s menu annually. DOC spokeswoman Judy Beck said Wednesday she did not have further comment beyond Batista’s response to the audit.

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Financial Woes Continue For Massena Hospital

Source: WWNYtv, November 20, 2017
 
Massena Memorial Hospital continues to rack up financial losses as it moves toward a potential privatization next year.  The hospital had an almost $880,000 loss from operations in October, compared to an almost $150,000 gain in October 2016. So far this year the hospital has a loss from operations of nearly $3 million.  Hospital executives attributed the losses to a number of factors. Two big ones were increased pension and health insurance costs. They are growing increasingly frustrated with higher pension costs. … The hospital’s merger talks with other hospitals are basically on hold until a transfer agreement can be worked out with the town, Wolleben said. …

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Incumbent Massena Town Supervisor issues last-minute debate challenge to Democratic opponent
Source: Abraham Kenmore, Watertown Daily Times, November 4, 2017
 
Town Supervisor Joseph D. Gray issued a challenge late Thursday to his opponent for a debate, four days before the election. In an interview with the Times on Thursday, Mr. Gray, the Republican incumbent, said he was challenging his Democratic opponent, Councilman Steven D. O’Shau­ghnessy, to a debate tonight in the Town Hall. He then issued a press release late Thursday night specifying that he had reserved Room 30 for 7 p.m. at the Town Hall to take community questions. … Mr. Gray has accused Mr. O’Shaughnessy of striking a deal to keep the hospital under town control in exchange for the endorsement of the Civil Service Employees Association Local 887, which represents over 200 workers at the Massena Memorial Hospital and opposes privatization. Mr. O’Shaughnessy has denied any such deal, and said Mr. Gray raised similar accusations that council members with state pensions would be under the control of Albany. …

Gray accuses O’Shaughnessy of opposing hospital privatization
Source:Abraham Kenmore, Watertown Daily Times, November 3, 2017
 
Town Supervisor Joseph D. Gray issued a news release Monday questioning the endorsement of councilman Steven D. O’Shau­ghnessy, his Democratic opponent, by Civil Service Employees Association Local 887, which represents over 200 workers at the Massena Memorial Hospital. The CSEA has organized protests against the privatization of the hospital, which Mr. Gray says is necessary to keep the debt-ridden hospital open. …

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Stephenson County Board postpones decision on nursing home referendum

Source: Jane Lethlean, The Journal Standard, October 12, 2017

The Stephenson County Board postponed a vote today to place an advisory referendum on the November 2018 ballot to gauge public opinion about selling the county nursing home. Dan Neal, chairman of the County Board Nursing Home Committee, said there has been strong sentiment by some board members to sell the Stephenson County Nursing Center to a private company. … Ed Sadlowski of Janesville, Wisconsin, spoke on behalf of American Federation of State County and Municipal Employees Council 31. “This sends the wrong message to the community, and you need to lead,” Sadlowski told the board. “Once you hand the nursing center over to the private sector, it will end up costing residents more.” …