Healthcare Technology Featured Article

January 02, 2013

GTCR Acquires Correctional Healthcare Companies

GTCR, a leading private equity firm, recently acquired CHC (Correctional Healthcare Companies). CHC is a leading outsourced healthcare provider to correctional facilities.

GTCR now partners with Doug Goetz, the chief executive officer of CHC, Don Houstan, the chief operational officer of CHC and Dale Wolf, a managed care industry executive, to strategize plans that would grow and expand the business.

CHC provides industry-leading inmate healthcare services to prisons and jails. It is the only outsourced provider which provides solutions across the corrections market for the full spectrum of healthcare needs in the country. CHC provides facility and communications based operational solutions across different stages of the correction process for continuity. This helps CHC in lowering costs, reduce recidivism and mitigate risks for its clients. CHC supports justice system by providing a total correctional healthcare program which addresses the needs of the offender and agency in pre-custody, custody and post-custody settings.

CHC provides fully-staffed managed healthcare to correctional facilities across 26 states. It serves more than 64,000 inmates in about 250 correctional facilities. It assists more than 250 local courts with probation management services. It provides community-based mental health services to over 20,000 parolees and probationers annually.

“We are extremely pleased to complete the acquisition of CHC,” said David Katz, managing director at GTCR. “GTCR’s extensive experience investing in both healthcare provider and payor businesses enabled us to develop a unique perspective on CHC and its growth opportunities going forward. We look forward to partnering with Dale, Doug, Don and the rest of CHC’s management team to continue to expand the business through organic growth and acquisitions.”

“We are excited to begin a new relationship with an equity partner committed to our growth,” stated Doug Goetz, chief executive officer of CHC. “We believe GTCR’s established track-record investing in the healthcare industry, coupled with Dale’s extensive managed care experience, will help CHC to realize its growth potential across the full breadth of correctional care.”

“CHC provides its clients with a unique cost containment solution that offers high quality healthcare services while allowing facility operators to focus on their core operations,” added Dale Wolf, executive chairman of CHC. “Doug Goetz and his team have built an exceptional business, and I look forward to working with them to help drive CHC’s continued success.”

GTCR is a leading equity firm focused on Healthcare, Financial Services & Technology and Information Services & Technology industries. Since its inception in 1980, GTCR has more than $10 billion invested in over 200 companies.

The acquisition was supervised by Latham & Watkins where they served as legal counsel to GTCR. CapitalSource, Prospect Capital, NXT Capital and Bank of Ireland provided committed debt financing. GTCR invested in CHC from GTCR Fund X, a private equity fund with $3.25 billion of committed capital for the purpose.

Edited by Rich Steeves

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