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Gateway Corrections Sees Big Jump in Community Treatment Contracts PDF   E-mail
Addiction Treatment Industry Newswire

10/13/2018 -ATIN- Gateway Chicago's corrections addiction treatment division, the second largest corrections provider in the nation, is seeing a big move away from in-prison treatment contracts toward community based treatment of offenders.

"There is a major trend, which in one form or another is happening in virtually every state, to move corrections treatment out of jails and prisons and into the community," says Gregg Dockins, president of Gateway's corrections unit.

He says that 50 percent of Gateway Corrections' expected $43M in revenue this year will come from community-based contracts, up from just 5 percent a couple of years ago.

Gateway Chicago CEO Tom Britton says he expects overall Gateway revenues, which include its big consumer business, driven by revenue from commercial payors, to reach $135M this year, up from $112M the year ended June 30. Gateway's consumer side is largely focused on Illinois, where it is by far the largest player with 14 centers, but Britton has been pursuing an M&A growth strategy and has been targeting acquisitions in at least four states.

One feature of the community based treatment contracts, and one Dockins expects to be a significant source of growth going forward, is that county and state governments are widening the scope of services they are contracting out to providers like Gateway.

"In a significant number of cases we are not just being hired to run the treatment side, but are also responsible for the overall management of offenders, which typically in the past was handled by probation officers and the like," says Dockins.

The nation's largest corrections treatment provider, by far, is the big private corrections contractor GEO Corrections, based in South Florida. The GEO Care division, which Gateway competes with, comprises GEO's privatized mental-health and residential-treatment services business. Last year, GEO paid $360M for Community Education Centers, CEC, which was previously the second largest corrections addiction treatment provider. Westcare of Las Vegas is also a significant player in corrections care.

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