Feb 8, 2019 — Established group home for at-risk teens in Central California with a 501-3c designation. This location is a four-facility program that offers 24-hour care and supervision adhering to the psychological, emotional, behavioral, nutritional and medical needs of their residents. Residents range from age 12-19 and are placed into specified homes designed to help them adjust and grow into influential members of society. There are currently 8 residents enrolled who typically stay within the care of the program for an average of 6 months. The program has a max capacity of 24 residents, which are supervised by 16 full-time employees and 24 part-time employees. Inventory included in the purchase include: standing FFE, washers, dryers, refrigerators, four high-occupancy vans and two mid-sized vehicles.
California’s recent Continuum of Care reform legislation has resulted in new service expectations and licensure requirements for programs serving youth and families. The legislative reform changed the former group home system to a more intensive and individualized service delivery paradigm called a Short-Term Residential Therapeutic Program. Currently, the program generates $7,931 per resident, but due to the recent changes, group homes operating under the STRTP license will receive nearly $13,000 per resident. This is a significant opportunity for an established group home to expand and increase their revenues by 60%.
Due to these recent mandates regarding license requirements and foster care restrictions, the current owner has not meet personal qualifications for the STRTP license and the number of enrolled residents has dropped below full capacity. The right buyer who already has a STRTP license or can meet the qualifications for one, would stand to gain a significant increase in revenues.