State penalized private prison operator $29.5M since 2022 for contract shortfalls

The headquarters for private prison company CoreCivic in Brentwood, Tennessee. (Photo: John Partipilo)

Tennessee’s private-prison operator has paid more than $29.5 million in liquidated damages since 2022 for failing to meet state contractual requirements, mainly for staffing shortages at four facilities, officials said Wednesday.

Department of Correction officials made the admission amid revelations of another lawsuit against CoreCivic involving an inmate’s death at Trousdale Turner Correctional Center, a facility facing a federal investigation for civil rights violations.

The state prison system, similarly to those in other states, struggles to hire officers and boosted pay in 2021 by about 35%. CoreCivic’s vacancy rate at four state prisons is higher than the state’s, and, consequently, the publicly-traded company that holds state contracts totaling $240 million continues to be penalized by foregoing millions annually.

Tennessee governor calls CoreCivic ‘important partner’ amid DOJ investigation

Trousdale Turner, which was assessed $7.38 million in penalties since 2022, experienced a 188% turnover rate for prison guards last year. The company sustained a 146% turnover rate in 2023 because of difficulty hiring correctional officers, making it more difficult to monitor prisoners and avert safety risks. Yet the state increased its payout to CoreCivic by $7 million.

Trousdale Turner hasn’t been the state’s poorest performing prison as far as meeting contractual requirements. Hardeman County Correctional Facility has been penalized $9.75 million, Whiteville Correctional Facility $8.54 million and South Central Correctional Facility in Wayne County $3.91 million since 2022, according to state figures.

Yet Correction Commissioner Frank Strada is “satisfied” with CoreCivic’s efforts and reiterated Wednesday he has no plan to stop private prison operations.

“I’ve said many times our partnership with CoreCivic has been very rewarding for the state,” Strada said, contending the company makes improvements after the state levies penalties.

The Department of Justice cited a record of assaults, murders and understaffing at Trousdale Turner since it opened in 2016 as justification for a civil rights investigation that started in August.

Strada said the state is cooperating with the Department of Justice. He declined to comment, though, on a recent lawsuit against CoreCivic claiming an inmate at Trousdale Turner died of a drug overdose stemming from understaffing and a prison drug ring, according to news reports. The filing says 418 calls for help were made about overdoses over three years at Trousdale Turner and that staff profited by allowing drugs to be smuggled into the facility.

CoreCivic also declined to comment on the lawsuit but released a statement saying it takes the health and safety of all inmates seriously.”,

“To that end, we have a zero-tolerance policy for the introduction of contraband. The introduction of contraband, including harmful substances, is a nationwide challenge for all correctional facilities. We work closely with our government partners and law enforcement officials to detect, prevent, and investigate the introduction of contraband into our facilities,” the statement said.

Despite continual problems at Trousdale Turner, Strada said he believes the fines levied against CoreCivic serve as “a deterrent.” He also told lawmakers he opposes independent oversight of prisons and maintained that stance with reporters after a Wednesday hearing even though prison officers were stabbed recently by an inmate at Trousdale Turner.

Republican Sen. Mark Pody, a member of the Senate Corrections Subcommittee, said Wednesday he believes more prison oversight is needed after lawmakers heard testimony from groups that support independent oversight boards. The Legislature killed its oversight committees, including one on prisons, in 2011 as part of a move to save $851,800.

Pody and Sen. Ed Jackson, chairman of the subcommittee, also said they want to take a “deeper” look at the state’s form of penalizing CoreCivic to determine whether adjustments should be made. Pody said he isn’t satisfied with the method for levying fines against CoreCivic.

“It seems that CoreCivic has a little bit higher turnover rate and vacancy rate than the state. … If they’re underneath the contract, they’ve got to hold up their end of the contract,” Pody said.

The senator also said he feels he’s been “stonewalled” by the state when trying to obtain information about inmate deaths.

“It’s a little bit troubling” to be unable to get information from the Department of Correction about inmates. He noted creation of an oversight committee could be the best step for a “long-term” check on the prison system.

SUPPORT: YOU MAKE OUR WORK POSSIBLE