Corrections Corp. of America Q2 2008 Earnings Call Transcript

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2008-08-07 13:27:14.0

Tags: Corrections Corporation of America

Question-and-Answer Session

Thank you. [Operator Instructions]. And we'll take our first question from Todd Van Fleet of First Analysis.

Todd Van Fleet - First Analysis Corporation

Good morning, guys. I want to pursue a line of questioning on the issue of the morning which is California, and you had mentioned that the Tallahatchie facility is, I guess you singled out Tallahatchie as being a facility of dangerous issue. Is it just Tallahatchie, is it we should expect the slowdown of inmates in the facilities beyond Tallahatchie if you could adjust that first?

John D. Ferguson - Chairman of the Board and Chief Executive Officer

Well, we can't promise what that's going to be. We continued to receive inmates. We do not believe that it would go beyond Tallahatchie on any suspension. In fact, we are doing some doing moving [ph] around and may be even increase the availability in some of the others, then end may completely worked out. But we will say that one of the things that there is going to be an outcome of this effort in dealing with the expectations and the standards of the receiver is that it will probably drive some actions in some of our other facilities once we work through the issues at Tallahatchie. There appears to be some desire about the receiver to like modify the medical staffing, so that we have more RE and there is then LP and there is some processes that they feel are important.

So I say that we don't see at the moment that there would be any suspension of any of the other five facilities, but we do believe that we are going to probably be developing a little bit of roadmap of some of the requirements that we may have. And then again, we new when we entered into this transaction that it was going to be unique relationship because the California was, their healthcare system had been taken over by the federal court and they would have to do deal with it. But again to answer your specific question at the moment, we don't see the suspension of any of our other facilities.

Todd Van Fleet - First Analysis Corporation

Okay. So California has sent officials to Tallahatchie to review the healthcare environment there and they have indicated that they would like to see a change in the personnel or is there a PP&E that needs modifying here too with respect to Tallahatchie?

 

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