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Wednesday, June 10, 2009

Prison vendor accuses system of secret negotiations with competitor

MHM Correctional Services is suing Florida's prison system for allegedly favoring a competitor through secret deals, The Miami Herald reported. MHM accuses the prison system of holding "secret" and "closed-door" talks with its competitor before MHM learned that its extension proposal was rejected. The governor's office says MHM was rejected because the firm didn't meet the financial soundness requirements.
Florida's prison system is embroiled in a lawsuit filed by an ousted vendor on a major contract that accuses the state of illegally favoring a competitor.

The lawsuit was filed by MHM Correctional Services, which wants to extend its 2 ½ year contract to provide mental health care to more than 15,000 inmates in a dozen South Florida prisons.

In an effort to save money, the state privatized prison health care several years ago, but a legislative watchdog agency said in a report last January that the change has yielded "mixed results.''

More here.

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