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Hedge Fund Pumps More Money into Corizon Health

Loaded on March 5, 2019 published in Prison Legal News March, 2019, page 61
Filed under: Corizon.

Private prison medical care provider Corizon Health has received an injection of capital from shareholder BlueMountain Capital Management, a global hedge fund.

The infusion of cash allowed Corizon to pay down its debt and “accelerate business development and investment opportunities.” In other words, the company plans to obtain more contracts to provide medical services at prisons and jails. Corizon reportedly operates in 21 states and is responsible for the care of prisoners at 273 facilities. 

BlueMountain manages more than $21 billion. As a result of an initial recapitalization led by the hedge fund in April 2017, Corizon “significantly reduced” its $300 million debt load. While details of the deal were not fully disclosed at the time, the investment reduced the stake of former main Corizon shareholder Beecken Petty O’Keefe & Company.

Then, in November 2018, BlueMountain invested another $100 million in Corizon in a debt-for-equity deal, lowering its debt to $90 million. Corizon has been investing in electronic health records, telemedicine, data analytics and other services. It has submitted bids in several states to privatize or take over currently privatized prison medical services, though it has faced numerous lawsuits as well as fines for contract violations, and recently lost its contract to provide healthcare in Arizona state prisons. [See, e.g.: PLN, Sept. 2017, p.32; Oct. 2015, p.20; March 2014, p.1]. 

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Sources: nashvillepost.com, corizonhealth.com 

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  1. News in Brief
  2. Executive Order Prompts BOP to Expand Prison Apprenticeship Programs, by Dale Chappell
  3. Fourth Circuit: BOP Must Consider State Court’s Designation to Serve Concurrent Federal Sentence
  4. Hedge Fund Pumps More Money into Corizon Health
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  6. CoreCivic Bilked Rural Oklahoma Town, Forced to Pay Back Money in Lawsuit, by Steve Horn
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  8. Maine Prisoner’s Challenge to Confiscation of Funds States Declaratory Judgment Claim, by David Reutter
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  10. Settlement in Lawsuit Against Missouri DOC’s Selection of Execution Witnesses, by Kevin Bliss
  11. New York Criminal Defense Attorney Charged with Federal Crimes, by Chad Marks
  12. Prisoner Who Inspired First Step Act Is First Released, by Kevin W. Bliss
  13. Reports Cite Poor Leadership in U.S. Marshals Service, by Edward Lyon
  14. Long-Term Illinois Prisoners Rarely Released by State Parole Board, by Rick Anderson
  15. North Carolina Prison Guard Sues Over Religious Discrimination, by Monte McCoin
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  25. Tenth Circuit: Qualified Immunity Defeats 22-Year Solitary Confinement Claims, by Mark Wilson
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  53. Eighth Circuit Finds Verified Complaint Defeats Summary Judgment Motion in Failure-to-Protect Case, by Matthew Clarke
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