Corrections Corporation of America ... president and CEO, Damon Hininger, [spoke] in a conference call with analysts ... about the recent purchase (January 2012) of a state prison in Ohio. CCA purchased the Lake Erie Correctional Institution for $72.7 million as part of Governor John Kashich's ... prison privatization program. According to a press release from the state, tax payers will realize an estimated $3 million in annual savings. CCA is not stopping at Ohio though. CCA's Chief Corrections Officer Harvey Lappin, former Director of the Bureau of Prisons who joined CCA less than a year ago, is making similar offers to buy prisons in other states. CCA offers to buy the state's prison with cash up front in exchange for a 20-year management contract plus an assurance that the prison will remain 90% full over that period. In Ohio's case, that meant that for the big chunk of cash up front, it would guarantee payments to CCA for 20 years for inmate per diem, occupancy fee ($3 million/year) and a guarantee that the minimum inmate population would be no less than 90% of capacity. Selling the facility has its downfalls. Once a state has sold its facility, it leaves little opportunity to contract with another prison management company in the event of a dispute or to save money. CCA, in the case of buying a prison, could be in the driver's seat to dictate prison policy to the state.