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Private Prison Health Care Giants Merge  


Author:  Jacqueline M.  Moore, Ph.D., R.N., C.C.H.P.A..


Source: Volume 12, Number 04, May/June 2011 , pp.49-50(2)




Correctional Health Care Report

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Abstract: 

In March 2010, Valitas Health Services, Inc., announced that it planned to acquire America Services Group (ASG) for approximately $250 million, better positioning these industry giants to pursue all levels of correctional health care contracts—city, county, state, and federal. This merger has resulted in a company with approximately 11,000 employees, over 400 facilities in 31 states, and a projected 2011 revenue of nearly $1.4 billion. 1 However, the outcome of the merger raises more than a few questions: Does the merger require a new contract if there is a new company name? Is county commission approval required by an assignment or transfer clause? How will clinical and site management change, and how many employees face losing their jobs?

Keywords: Rikers Island, Montefiore Hospital, Prison Health Services, Correctional Medical Services, ARAMARK, Spectrum

Affiliations:  1: Moore & Associates.

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