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She became Leah's adopted mother after Adria left to play her role in Diablo's scheme, working again as a barmaid IRRC.
In the recent novel, The Order, apparently her mind finally snapped from the horrors of her past and attempted to burn down her little place in Caldeum with a 8 year old Leah and Deckard Cain inside. However Cain got out with Leah and the city guard appeared with a detained Gillian, claiming Cain being a demon in disguised and Leah a threat. After it was agreed Cain would take Leah away from Caldeum Gillian was then sent off to the Madhouse raving, a place Cain mention utilizing barbarous medical practice or something.
Since then nothing said about her. I would find it doubtful Gillian would still be even alive today in the Madhouse, enduring ~12 years. What more character development can she really serve as sad as it is.
TL;DR: Gillian went mad and was sent to a Madhouse.
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