Happy New Year everyone! Another year in the books. Thanks for your continued support, hard work and dedication. It takes a complete team effort to successfully run the company and for everyone to do their part to keep things functioning properly and operating smoothly. The 2022 calendar year was a mixed bag. The pandemic appears to have slowed down after 3 years. Thanks everyone for staying diligent to slow the spread of COVID-19. We began to see some improvement in our staff recruitment efforts and appear to be gaining ground in this area. Many large repair projects were completed. Our Orion and Hollywood LTORR contracts with CDCR were renewed for more beds. We received very good performance reviews from our contracting agencies, and continued providing quality services to the people we serve.
On the flip side, however, we continued to experience payment delays from our contracting agencies, causing payment delays to vendors. We closed the Hollywood Drinking Driving Program (DDP), after trying for years to drum up more business. Because of the growth in the popularity of ride sharing services like Uber and Lyft being used by people who consume alcohol, drinking driver arrests have declined significantly over the last 5 years. As a result, the level of active Hollywood DDP participants went from 700 to 350, causing our operating expenses to far exceed our income. We are also currently looking at alternative funding sources for the Tucson facility, as we decided not to continue operating the Community Treatment Services (CTS) program there a few months ago. This decision was made because the level of participation never reached what was projected by the contracting agency and continued struggles to find qualified BHTs and licensed staff to work part-time at the facility.
All in all, 2022 was a good year and we will continue to refine and improve the programs that we currently operate in 2023, while looking for other opportunities to establish new programs and funding sources.
Thanks again for doing your part well in 2022!
Sincerely,
Chris Lindholm
President/COO