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GTCR acquires Correctional Healthcare Companies

Private equity firm GTCR has completed the acquisition of Correctional Healthcare Companies (CHC), an outsourced healthcare provider to correctional facilities.

GTCR is partnering with CHC chief executive Doug Goetz, chief operating officer Don Houston and managed care industry executive Dale Wolf to grow and expand the business.

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

CHC provides inmate healthcare services to jails and prisons across the US, 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,” says 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,” says Goetz. “We believe GTCR’s established track-record investing in the healthcare industry, coupled with Dale’s extensive managed care experience, will help CHC to realise its growth potential across the full breadth of correctional care.”

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 USD3.25bn of committed capital.

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