GTCR Completes Correctional Healthcare Deal

Buyout shop GTCR has acquired Correctional Healthcare Companies, a outsourced healthcare provider to correctional facilities. Terms were not released.

GTCR, a leading private equity firm, announced today that it has completed the acquisition of Correctional Healthcare Companies (“CHC”), a leading outsourced healthcare provider to correctional facilities. GTCR is partnering with CHC CEO Doug Goetz, COO Don Houston and managed care industry executive Dale Wolf to grow and expand the business.

This investment results from GTCR’s proactive efforts with Mr. Wolf and Jessamine Healthcare, a management startup with Mr. Wolf, targeted at a range of healthcare cost containment and payor businesses. Mr. Wolf, former CEO of Coventry Health Care, has joined CHC as Executive Chairman as part of the transaction.

CHC provides industry-leading inmate healthcare services to jails and prisons across the country, and is the only outsourced provider addressing the full spectrum of healthcare needs across the corrections market. The Company’s combination of facility and community-based operations creates a continuity of care across the different stages of the corrections process, enabling CHC to reduce recidivism, lower costs and mitigate risk for its clients.

The Company provides fully-staffed managed healthcare to correctional facilities, serving over 64,000 inmates in more than 250 correctional facilities across 26 states. Additionally, the Company provides community-based mental health services to over 20,000 probationers and parolees annually, and assists more than 250 local courts with their probation management services.

“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, CEO 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.”

Latham & Watkins served as legal counsel to GTCR. NXT Capital, CapitalSource, Bank of Ireland and Prospect Capital provided committed debt financing in connection with the transaction. GTCR’s investment in CHC was made from GTCR Fund X, a private equity fund with $3.25 billion of committed capital.

About GTCR
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare and Information Services & Technology industries. The Chicago-based firm pioneered the “Leaders Strategy” – finding and partnering with management leaders as the critical first step in identifying, acquiring and building market-leading companies through acquisitions and organic growth. Since its inception, GTCR has invested more than $10 billion in over 200 companies. For more information, please visit .

About Correctional Healthcare Companies
Correctional Healthcare Companies, (CHC) is a national provider of correctional healthcare solutions that improve public safety, manage risk, reduce recidivism and extend budgetary resources in the facilities and communities in which it works. CHC’s integrated healthcare solutions address a wide range of client and correctional needs including inmate healthcare, outpatient treatment, mental health, behavioral programming and treatment case management services.

CHC is proud to support the goals of its criminal justice customers by providing a total correctional healthcare program that addresses offender and agency needs in pre-custody, custody and post-custody settings.