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GEO Group earning call highlights contract bids in Texas

GEO Group's quarterly conference call was held on Monday.  The calls are a great way to see how the private prison industry thinks about the prison system and where expansion opportunities may lie.  

On this call, GEO executives talked to investors about recent company developments and where it sees its future business opportunities, including several in Texas.  Here are some of the highlights, as it relates to Texas' private prison industry:

  • GEO has activated the 600-bed Karnes County Civil Detention Center, the controversial Immigration and Customs Enforcement-contracted facility, which the company expects will bring $15 million annualized revenues.
  • GEO Care, a GEO Group fully owned subsidiary, is planning on bidding for on a formal RFP to operate one state mental health hospital.
  • GEO's transport division is bidding on contracts with ICE in the Dallas area and a Customs and Border Patrol contract along the SW Border.  These were described as the two largest transport procurement options currently in bidding.
  • GEO's BI electronic monitoring subsidiary is poised to increase profits if a recommended 40-50% budget increase goes through to expand Immigration and Customs Enforcement's electronic monitoring contract.

The company mentioned that they are closely monitoring developments on all of these fronts, and so will we.  We'll keep you posted on developments.  

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Geo is cheating to get the hospital in Texas. They received a two hundred thousand dollar fine from DSHS for licensure violations that were egregious, including restraining and secluding people without Dr. orders and providing bad care. Leadership pulled the fines and they will not have to pay a thing. They hired the former Superintendent of Kerrville State Hospital to spearhead privatization, even though he did not sit out of state employment prior toworking for Geo and assisting in procurement bids. He has been having private meetings with DSHS employees and the agency's own lawyers acknowledged in writing that he has already violated the law by communicating with DSHS officials to the point that "it will jeopardize award if Geo is ultimately selected." HHSC received a complaint about these issues, but has failed to investigate or enforce procurement rules.