Prison Health Services Inc., a Tennessee-based company that has provided medical services to most Maryland’s prisons for five years says that it failed to win a new contract for inmate medical care potentially worth tens of millions of dollars, the Baltimore Sun reports. The for-profit company has been criticized in Maryland and other states over the quality of its care.
Prison Health is the nation’s largest provider of health care to jails and prisons, serving more than 240,000 state inmates. Prison Health signed an inmate medical contract with Maryland in 2000 worth about $270 million over five years. The contract – known as a flat-fee model -left Prison Health vulnerable to the vicissitudes of the health care industry. As health care costs skyrocketed, the company lost money in Maryland and other states where it had signed similar contracts.