It began more than 30 years ago when a former Job Corps center director, James Fornear, got together with some colleagues, including two PhDs with experience in services to people with developmental disabilities, a banker and a lawyer. All were Kentucky folks who wanted to make sure their business was also an outreach to their communities and to others.
First Contracts Create ResCare’s “Face”
ResCare’s first contract was with the Department of Labor to operate a Job Corps center in Kentucky. Very shortly afterward the group won a contract to manage a state-owned residential site for people with developmental disabilities. The company built on the strengths of its founders by concentrating on education, training and life development for those with developmental disabilities and young people trying to overcome the effects of disruptive environments. ResCare grew slowly over the next decade and a half, branching out to other states and focusing on its strengths.
Getting on the Fast Track
In 1990, the original founders hired another homegrown Kentuckian, Ronald G. Geary, as president. Mr. Geary, a lawyer and CPA and former president of Cincinnati Bible College, spearheaded the move to take the company public in order to expand its services to more people. This was a turning point in ResCare’s history. At that time ResCare employed 1,500 people in 5 states. ResCare’s fast growth occurred primarily between 1995 and 2000 during which the company more than quadrupled its size. It also introduced a new service line to the ResCare family: in-home services to the elderly.
At the end of Mr. Geary’s tenure as president and CEO in 2006 ResCare had grown to employ nearly 40,000 people in 36 states, Canada, Puerto Rico and Washington DC. Its revenues grew from $65 million to more than a billion dollars. ResCare became the nation’s largest provider of services to people with disabilities and the second largest Job Corps contractor.
Retooling Time
Because of the extraordinary five years of growth, ResCare leadership had to ensure its systems and policies were able to handle the increased demands. Between 2000 and 2004, the company continued to grow organically while paying special attention to its quality, compliance and financial management systems. ResCare formalized its compliance program making it one of the most comprehensive in its field. It retooled its quality assurance systems ensuring they could handle the expanding demands and be ready for future growth, and it added new financial management tools that would keep pace with the changing requirements faced by all public companies.
An Investor’s Faith
Between 2004 and 2006 ResCare again was ready to expand its services through acquisitions. It found help from Onex Corporation, a Canadian investment powerhouse, who had faith in ResCare’s leadership and mission. The corporation invested more than $50 million to refuel ResCare’s growth engines.
Workforce Services Added
The company again played to its strengths in the education and development field and added workforce services to its business lines with the purchases of Arbor E&T, TTI America and ACS Workforce Services. Workforce services finds jobs, education and training for people who have had significant barriers to employment, have lost their jobs or are just entering the workforce. The acquisitions made ResCare the largest private provider of workforce services in the country.
At the same time, ResCare continued to build its in-home service business, acquiring small home care companies and announcing plans to build a national presence in the home care field.
Explorations into building an international presence also began with workforce training contracts in the Middle East and Haiti.
Passing the Baton
In 2006, Mr. Geary, while remaining chairman of the ResCare board, retired from his president and CEO positions handing the baton to Ralph Gronefeld, an 11 year ResCare veteran and president of the company’s services to people with disabilities—the largest of ResCare’s two divisions. Mr. Gronefeld also served as president of the company’s Youth and Children Services and as CFO during his tenure.