Concerns Emerge Over For-Profit Residential Treatment Centers

An investigation by the Associated Press has brought to light significant concerns regarding private, for-profit residential treatment centers like Calo Programs in Lake of the Ozarks, Missouri. These facilities, often benefiting from taxpayer funding, serve primarily adopted children with specialized needs but demonstrate a lack of rigorous oversight following abuse allegations. The high cost of services, charging up to $20,000 monthly, raises questions about their financial motivations and commitment to patient welfare.

Calo Programs promises a therapeutic environment where children engage in activities, including animal interaction; however, law enforcement frequently addresses incidents like runaways and assaults. Reports from the Camden County Sheriff’s Office between 2020 and 2025 cite numerous incidents involving children as victims or witnesses, including a notable case of assault linked to methamphetamine misuse. Despite these challenges, Calo asserts its treatment efficacy, supported by their outcomes in mental health services for children.

Supporting Calo’s operations, the Illinois Department of Healthcare and Family Services and the Illinois State Board of Education have contributed over $35 million in the past decade. Significant funding allocations in 2025 reflect a commitment to placing children at Calo. As part of the broader troubled teen industry, Calo, founded by Alex Stavros in 2007, is now integrated into the Embark Behavioral Health network, expanding its reach across the U.S.

Critics, including juvenile justice administration officials, remain skeptical of such for-profit entities, suggesting financial incentives overshadow child welfare priorities. Nonetheless, Calo defends its mission, emphasizing the necessity of engaging distressed families to break mental health stigmas and provide essential care. The situation highlights the intricate interplay between residential treatment providers, healthcare, child welfare, and finance regulations.