MTC to terminate jail management contract. Operating losses make it impossible to continue at facility

 (SANTA FE, New Mexico) – Management & Training Corporation (MTC) notified Santa Fe County officials yesterday, of its decision to exercise the termination clause in its Santa Fe County Adult Detention Center (SFCADC) management contract. MTC is prepared to continue operating the facility for up to six months as specified in the contract. However, MTC is also willing to vacate the management agreement more quickly if the county selects a suitable replacement in a more timely manner. MTC is committed to work with the Sheriff and County Commission in the coming months to explore alternatives to resolve the issues that have made the contract unsuccessful for MTC.

“This is a difficult decision,” said MTC Corrections Vice President Al Murphy. “We are very proud of the improvements we have helped to make at the facility. Working closely with the County Commission and Sheriff Greg Solano, we have made this a much more efficient and better run jail.”

Earlier this week, Correct Care Solutions, the current medical provider, notified MTC it plans to pull out of the facility because it cannot meet the medical requirements of the facility under the present reimbursement allowance. Last year, PNA Medical pulled out of its contract at the SFCADC for the same reason.

Murphy stated, “Low inmate occupancy numbers and the costs of additional operating requirements have made it impossible for MTC to continue to manage the facility.”

MTC has chosen to end this contract because it has not been possible to operate profitably. Under two different contracts and with two different medical providers, MTC and both medical providers have lost money. Given the contract requirements, MTC has determined it is impossible to cover the cost of operating the jail at the reimbursement rate allowed by the county.

To successfully operate the Santa Fe County Jail, MTC must continue to meet national jail standards. To attract and retain employees, MTC must pay competitive wages and benefits. MTC and the County must meet new requirements of the U.S. Department of Justice. The medical needs of the jail population are very high and expensive to provide. MTC cannot accomplish these requirements and successfully market the beds under the reimbursement provisions in the current contract.

MTC is proud of its SFCADC employees and will do everything possible to assist them in transitioning to new positions. It is anticipated most of these employees will find career opportunities with the facility’s future managers.

Management & Training Corporation assumed control of the SFCADC in 2001. Last year the Santa Fe County Commission expressed its support of MTC’s work at the facility by renewing the operational agreement.

One of MTC’s primary accomplishments at the facility was to direct it into compliance with the rigorous operational requirements of the American Correctional Association (ACA). Only three percent of all county jails across the United States have earned ACA accreditation, as the SFCADC did in January 2004.

Under the direction of Warden Kerry Dixon, MTC has strengthened several security procedures at the facility. The Warden has also implemented a tobacco ban at the jail along with a more professional dress code for all inmate visitors.

MTC is now prepared to assist the Santa Fe County Commission through a smooth and seamless transition to the future managers of the SFCADC.(Posted 4/18/05)

For More Information Contact:
Carl Stuart, MTC Corporate Communication Director
(801) 693-2784 (office), (801) 209-8324 (cell) or cstuart@mtctrains.com

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