GEO Group discontinues Pa. county jail contract

BOCA RATON, Fla. – Prison operator GEO Group Inc. said Friday it is discontinuing its contract managing a county jail in Pennsylvania, citing litigation and poor financial performance.

GEO said it will no longer manage the George W. Hill Correctional Facility in Delaware County effective Dec. 31. The 1,883-bed facility generates roughly $38 million a year in revenue, the company said, but the contract’s discontinuation is not expected have a material impact on GEO’s financial performance, it said.

GEO said the facility is the only county jail it manages.

“We have decided not to continue in the local county jail market due to financial underperformance and frequent litigation,” Chairman and Chief Executive George Zoley said in a statement.

In 2005, the parents of an inmate who died in the jail of a heroin overdose filed a lawsuit seeking $500,000, claiming the drug was easily accessible to prisoners and, in some cases, smuggled in by guards.

Shares of GEO fell 46 cents, or 2.1 percent, to $21.87 in midday trading Friday.



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