I can't comment on all of your points but concerning them "walking away from all management contracts for facilities for which they do not own", that, if true, strikes me as quite understandable. But, I assume you mean they would not bid for future management contracts as opposed to "walking away" which implies they are going to not fulfil their contractual obligations.
Anyway, New PZN's mission is to build or buy (and own) as many facilities as can be economically completed. PZN has many prisons and beds presently under construction. When those facilities are built and occupied they will need the operating company to manage them. As a shareholder of PZN, I think that is what should happen. I would be worried if you were telling me that the operating company was bidding on management contracts NOT owned by PZN. That's not how we'll make our money.
I'm a relatively new shareholder so it's quite possible I'm missing something here. I'm sure others will let me know if I am. As far as the impact of this transition on profitability - well, I'm assuming Doc is managing this process so that the shareholders's profitability is maximized. The impact to short run? Again, I don't know and don't care. As a shareholder I expect managment to deal with this. It sounds like PZN and Op Co managements are repositioning the operating assets (the people) so they can deploy them in PZN facilities. That's what supposed to happen. As far as employee concerns; I don't see where they would/should have any. Doc's never missed a payroll and there seems to have historically been expanding opportunities for employees over time.
Concerning newcomers into the industry, what industry doesn't have them. CCA has dealt with that for a decade and for their trouble they own 50%+ of the market. Not many other companies can say that: Coke, Gillette, Microsoft. Pretty nice company.
Please understand that I'm not trying to be critical of you at all. You have brought up some very good discussion points which will probably be further developed by people more familiar with PZN and the industry.