GEO Consolidates Healthcare Operations, Opens New Facility
(12/01/2009)

ARCADIA, Fla. — The GEO Group opened a new $62 million secure treatment facility as the private prison operator announced the consolidation of correctional healthcare functions under the company’s GEO Care division.

The new 720-bed Florida Civil Commitment Center replaces the existing 660-bed facility in Arcadia, and is designed to provide comprehensive treatment programming for offenders detained or committed under Florida’s Sexually Violent Predator Act.

FCCC is Florida’s only civil commitment program for sexual offenders in the state.

In addition to the Arcadia facility, GEO Care operates three other secure forensic, mental health treatment and civil commitment facilities with a combined 800 beds. The company also provides mental health services for 500 inmates within the 3,300-bed Palm Beach County jail complex.

GEO Care, which assumed management of the former state facility in 2006, will operate the new facility under a five-year, $130 million contract with the state Department of Children and Families.

“We are very pleased with the opening of the new Florida Civil Commitment Center replacement facility, which will meet the unique treatment needs of the resident population in a safe and secure environment,” says George Zoley, GEO chairman and CEO.

The consolidation of correctional healthcare functions under GEO Care is designed to improve operational productivity and standards throughout GEO’s correctional, detention and residential treatment facilities, officials say. The reorganization also aims to better position the treatment and healthcare division in competing for new facility management contracts.

“This important consolidation will enhance the implementation of best healthcare practices throughout our company and will maximize the use of our diversified companywide resources,” Zoley says.

In other news, GEO will open a 384-bed expansion of the 1,500-bed Graceville Correctional Facility in Graceville, Fla., in July.

The company expects to complete inmate intake at the facility, which is operated under a facility management contract with the state, during the third quarter of 2009. At full occupancy, the expansion is projected to generate additional annualized operating revenues of approximately $5 million, officials say.

Company officials are also examining options for constructing a 3,000-bed correctional facility near Florida City. However, a local, state or federal tenant has not yet to been identified.

GEO operates approximately 60,000 beds at 64 facilities in North America, Australia and South Africa.

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