UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):
December 30, 2010

America Service Group Inc.

(Exact name of registrant as specified in its charter)

Delaware		0-19673		51-0332317
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

105 Westpark Drive, Suite 200, Brentwood, Tennessee		37027
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (615) 373-3100

Not applicable
(Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 1.01.		Entry into a Material Definitive Agreement.

     On December 30, 2010, Prison Health Services, Inc. (“PHS”), the primary operating subsidiary of America Service Group Inc. (the “Company”), and the New York City Department of Health and Mental Hygiene (“DOHMH”) entered into a two-year contract, effective as of January 1, 2011 (the “Agreement”) for PHS to provide administrative services related to the provision of comprehensive medical, mental health, dental and ancillary services to inmates in the custody of the New York City Department of Correction. PHS, through arrangements with professional service corporations, has provided administrative services related to the provision of comprehensive medical, mental health, dental and ancillary services to the approximately 12,000 inmates located within the New York City — Rikers Island complex and at the Manhattan Detention Center since January 1, 2001.

     Pursuant to the Agreement, PHS is subject to mandatory staffing and other performance requirements. Additionally, DOHMH is required to indemnify PHS and the professional service corporations and their respective employees for damages for personal injuries and/or death alleged to have been sustained by an inmate by reason of malpractice, except where PHS or the professional service corporations or their respective employees have engaged in intentional misconduct or a criminal act. The Agreement may be terminated by DOHMH without cause at any time upon 75 days written notice. PHS shall have the right to terminate the Agreement upon 90 days written notice in the event its obligations are materially changed by modification to the Agreement by DOHMH. DOHMH may terminate the Agreement on ten days notice for any material breach, subject to certain cure provisions.

     The foregoing description of the Agreement is not complete and is qualified in its entirety by reference to the Agreement, a copy of which is filed as Exhibit 99.1 hereto and is incorporated herein by reference.

Item 9.01.		Financial Statements and Exhibits.

(d)

Exhibits:

99.1

Agreement between New York City Department of Health and Mental Hygiene and Prison Health Services, Inc., effective January 1, 2011.

Signatures

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX

Exhibit
Number				Description of Exhibits
	99.1			Agreement between New York City Department of Health and Mental Hygiene and Prison Health Services, Inc., effective January 1, 2011.