% | $
Quotes you view appear here for quick access.

The GEO Group, Inc. Message Board

  • mcprison mcprison Feb 15, 2001 6:34 PM Flag

    More on Arkansas, from WCC

    PR Newswire

    February 15, 2001, Thursday 4:31 PM Eastern Time



    LENGTH: 746 words

    HEADLINE: Wackenhut Corrections Declines Extension of Arkansas Contracts


    Wackenhut Corrections Corporation (NYSE: WHC) today reported that it has informed the Arkansas
    Board of Correction and Community Punishment and the Arkansas Department of Correction that the
    Company would not consider a third extension of its management service contract for the Grimes and
    McPherson Correctional Facilities under the contracts' current terms and conditions. The existing WCC
    contracts are set to expire on June 30, 2001.
    Dr. George C. Zoley, Vice Chairman and Chief Executive Officer of Wackenhut Corrections, said,
    "We value our four-year relationship with the Arkansas Board of Correction and Community Punishment
    and the Arkansas Department of Correction. We continue however, to incur substantial financial losses
    due to the unexpectedly high cost of women's medical care, and the current contracts do not allow
    sufficient flexibility to adequately address these increased costs. Compounding the medical cost issue is
    the fact that staffing costs have also significantly increased due to a tight labor market and wage increases
    initiated by the State for its own correctional officers."
    Dr. Zoley went on to say that the Company does not expect the expiration of the current management
    contracts to have any impact on the Company's financial guidance for the fiscal year 2001. Both
    Arkansas prisons are owned by the State.
    "We are proud of our accomplishments, and we believe that the Grimes and McPherson Correctional
    Facilities are operating in accordance with our contract requirements and in line with the State's
    standards applicable to State-run facilities," Dr. Zoley said. "Over the last four months, we have made
    substantial operating improvements in facility sanitation, staffing levels, employee morale, maintenance
    and inmate programs/work details. Both facilities have attained re-accreditation status with the
    American Correctional Association and the National Commission on Correctional Health Care."
    Dr. Zoley noted, "Naturally, we hope that all of the employees who wish to continue their professional
    careers at the Grimes and McPherson Correctional Facilities will be able to do so. We will ensure a
    smooth transition of the facilities' operations to whichever organization is next selected to manage the
    In 1996, WCC was selected as the preferred contractor to design, construct and operate the Scott
    Grimes Correctional Facility, a 600-bed young adult male offender facility, and the adjacent 685-bed
    women's prison, Ronald McPherson Correctional Facility.

33.55-0.32(-0.94%)Jun 24 4:04 PMEDT