Hot Growth Special Report 2006 >



Providence Service (PRSC)

Tucson-based Providence Service Corp. is playing the outsourcing trend without leaving home. The company provides social services to poor folks on behalf of county governments in thirty-two states. Although Providence doesn't own any hospitals, group homes or treatment centers, the company's staff of 5,000, home-based social workers offer counseling to clients coping with challenges like drug addition, truancy and domestic violence. Founder and CEO Fletcher Jay McCusker previously ran a company that managed for-profit reform schools. Although Providence is largely dependent on cash-strapped local governments to meet its payroll, the formula seems to work: Providence's revenue doubled to $145 million over the past two years, while its profits shot from $2.6 million to $9.4 million.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

52.8 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

88.7 %

Return on Inv. Capital (3-yr.)

8.7 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

11.8 %

P/E Ratio


No. of Employees


Industry Health Care Services


Location Tucson
Phone 520 747-6600
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Providence Service engages in the provision and management of government sponsored social services in the U.S. It provides home and community based counseling, foster care, and provider management services. The company's home and community based counseling services include the provision of counseling services relating to marital and family issues, depression, drug or alcohol abuse, domestic violence, hyperactivity, criminal or antisocial behavior, sexual misbehavior, school expulsion or chronic truancy, and other disruptive behaviors in the client's own home; substance abuse treatment counseling services in office and counseling centers; and school support services, such as teacher training, individual and group counseling, logical consequence training, anger management training, gang awareness, and drug and alcohol abuse prevention techniques. Providence Service provides foster care to children who have been removed from their homes due to physical or emotional abuse, abandonment, or the lack of appropriate living situations; tutoring and other services to the child and foster family; and therapeutic foster care services for children exhibiting serious emotional problems and who could otherwise require institutional treatment. The company also provides management services to not-for-profit organizations, which include administrative support, information technology, and accounting and payroll services; intake, assessment, and referral services; monitoring services; and case management. The Providence Service Corp. was founded in 1996 and is based in Tucson.

Data provided by Capital IQ
Fletcher Jay McCusker

Fletcher Jay McCusker, 56

Chairman and Chief Executive Officer

Total Compensation*

$ 274,836

Total Options Value*

$ 414,900

* Fiscal Year 2005

University of Arizona - Bachelor's Degree, Arizona State University-Tempe - Master's Degree University of Arizona - Bachelor's Degree in Rehabililtation, Arizona State University - Completed the public programs graduate program without a terminal degree.

Executive Bio

Fletcher Jay McCusker has been chairman of the board and CEO of Providence Service since its inception in December, 1996, and serves as member of the nominating and corporate governance committees. Before founding Providence Service, McCusker served as executive vice-president of Youth Services International, a Nasdaq company that provided private institutional care for at-risk youth, from July, 1995, until December, 1996. From September, 1992, until July, 1995, he served as CEO of Introspect Healthcare, a closely held multistate behavioral health provider. In 1983, he co-founded a mental-health-care company, Century Healthcare, which was sold to New York Stock Exchange-listed Columbia Healthcare in 1992. He received a bachelor's degree in rehabilitation from the University of Arizona in 1974 and completed the public programs graduate program without a terminal degree at Arizona State University in 1982.

Management Team

Key Executives

Fletcher Jay McCusker; Fred D. Furman; Michael N. Deitch; William Boyd Dover; Craig A. Norris; Martin James Favis; Mary J. Shea

Board Directors

Warren S. Rustand; Kristi L. Meints; Steven I. Geringer; Hunter Hurst; Richard Singleton; Fletcher Jay McCusker

Executive Data provided by Capital IQ