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Corrections Corporation of America Message Board

  • aw0099 aw0099 Mar 31, 2001 10:40 AM Flag

    I was in a hurry here is a better

    answer.

    1. I have always said it will be a least a
    year before Wall Street regains confidence
    in CXW. Only after the company shows
    consistent performance. Management is doing
    that.
    2. Layoffs, I hate to see that happen at
    Youngstown but it makes sense. They will
    pursue other contracts to fill the beds.
    If you are half full, you only need half the
    staff. Youngstown has ran without incident
    since the new mangement has been in place.
    3. Lawsuits, it is part of the business. It
    happens everyday across the country. The new
    management is doing everything possible
    to ensure that instituions are being held
    accountable to the public, the customer,
    the company, and the shareholders. Like
    I said watch the first quarter.
    4. Lies, do you really want to talk about that
    that would put you at a great disadvantage.

    Not much wisdom as you requested, just a few facts. You should really work on trying to avoid using so much vulgarity.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Just one nit to pick:

      Half the inmates doesn't mean half the staff. More like three-quarters or more. There are sunk personnel costs associated with operating a prison, whether there is one inmate or a thousand. You still have to have perimeter guards, yard guards, food services, laundry, a warden, someone to run each department, on and on and on. The economies of scale you get when you run a larger facility work against you as you shrink. This makes the NEOCC situation even worse. They can't shrink in scale with the number of empty beds. A prison set up to make money with, say, 1,000 inmates, won't make money with 500 because you can't cut the staff sufficiently to offset the lost revenues. Conversely, some of CCA's "showcase" facilities were those that started out smaller, but added on unit after unit. The incremental costs of adding 500 beds to a 1,000-bed facility are no where near as large as opening up a separate 500-bed facility. CCA opened a lot of 500-bed facilities. Some were designed to make money at that level, or lower (NM Women's and Nevada Women's, for example). Others, though, were taken on because the company hoped they would be able to expand later. When that didn't pan out, poof! Bye, bye, contracts.

 
CXW
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