'Profits ahead of people': Victorian prison healthcare contract finally revealed

The Victorian government will pay a controversial US company $55 million per year to deliver healthcare in public men's prisons in the state.

The Victorian government will pay a controversial US company $55 million per year to provide healthcare services in public male prisons in the state.

The figure was recently revealed for the first time with the contract posted publicly on VicTenders, despite the state government signing the deal with The GEO Group in December last year.

GEO Group will be providing primary health services across all of the public men’s prisons in Victoria, taking over from the previous provider, Correct Care Australasia.

While the Victorian government earlier this year removed private providers from women’s prisons in the state, it also confirmed plans to continue outsourcing healthcare in all public men’s prisons.

Under the previous contract covering all public prisons, Correct Care was paid about $50 million per year.

GEO Group’s new contract is worth $55 million per year, despite servicing three fewer prisons than its predecessor.

Victorian Aboriginal Legal Service (VALS) CEO Nerita Waight says healthcare in these prisons should be provided by a public body.

“VALS wants all prison healthcare to be delivered by public health services and Aboriginal health organisations,” Waight says.

“Multinational private corporations will always put profits ahead of people. People in prison should be able to access healthcare that is equivalent to what is available to the community. Healthcare in prisons can have a big impact on rehabilitation rates and poor prison healthcare puts community safety at risk.”

Earlier this year a cultural review of the adult corrections system in Victoria recommended all prison healthcare be brought back into public hands.

“Health services are currently outsourced to a private provider, which is inconsistent with best practice and results in inconsistent and delayed healthcare for people in custody,” the report said.

“We recommend a transition to a public health model for custodial healthcare, to improve the quality and clinical oversight of health services provided to people in custody and enable continuity of care.”

The $55 million per year contract will also not deliver value for money, Weight says.

“The Victorian government has said privatisation has failed in other sectors and if they look at the evidence on prison healthcare they have to make the same conclusion,” she says. 

GEO Group’s new contract is worth just under $333 million and runs from December last year to June 2028. The heavily redacted contract was only recently posted publicly by the state government, despite being signed nine months ago.

This contract was previously held by Correct Care Australasia on a $550 million contract running from April 2012 to June 2023.