Three Local, Not-for-profit, Faith-based Senior Care Organizations Unite To Establish a Joint-venture Management Services Organization
Fairport Baptist Homes, Kirkhaven and Wesley Gardens are pleased to announce that after nine months of an exploratory process, the boards of directors of all three organizations have agreed to jointly establish a Management Services Organization (MSO). The objective is cost-sharing for specific support services rather than continue the duplicative, individualized services each organization currently provides.
“In response to a rapidly changing health care environment where cost containment, depth of resources and scale efficiencies are critical to sustaining ones mission, the aim of this MSO is to enhance cost competitiveness, market relevance and bench-strength,” says Jim DeVoe, Kirkhaven President & CEO. With the support of a United Way of Rochester Synergy Fund grant, a task force comprised of the three organizations’ CEOs and three board representatives each, was formed to evaluate the potential and conduct due diligence pertaining to the MSO strategy. The task force facilitator was NYCON, an organization devoted to assisting New York State nonprofit organizations to develop and promote effective and vibrant communities.
“The support and synergy between all three nonprofit, faith-based, senior care organizations throughout the process was extraordinary and all parties are excited about the potential this MSO concept holds for our future positioning and mission growth,” stated Tom Poelma, Fairport Baptist Homes President & CEO. The MSO implementation process will begin at the start of 2016 with the initial objective to consolidate the business office functions and various contract/purchased services. Consolidation of payroll, specific HR functions and other support services are expected to follow.
The MSO will be established as a separate, supporting nonprofit organization governed by a voluntary board of directors comprised of the three organizations’ CEOs and three individuals elected by each of the three supported organizations. The three organizations will continue to be governed and operated independently under their own board of directors. “This structure will retain each organization’s autonomy and control as it relates to their own mission and operation, while seeding certain support functions to the MSO under a collaborative and jointly-controlled operation,” explained Bob Jones, Wesley Gardens President & CEO.
With the advent of Medicaid Managed Care and Medicare Capitated Contracts it will become harder for independent, stand-alone health care organizations to flourish in an increasingly competitive market where quality and cost of service will determine who succeeds. With the implementation of this MSO, the boards of directors of the three organizations are leading the transition into the future of how senior care services are structured.
Fairport Baptist Homes is a 142 bed skilled nursing & rehabilitation facility that also provides assisted and independent living as well as home & community-based services within an annual operating budget of approximately 18 million dollars and 355 employees. Visit their website at Fairportbaptisthomes.org.
Kirkhaven is a 147 bed skilled nursing & rehabilitation facility with an annual operating budget of approximately 12 million dollars and a total staff of 225 employees. Visit their website at Kirkhaven.com.
Wesley Gardens is a 200 bed skilled nursing & rehabilitation facility with and annual operating budget of approximately 16 million dollars and a total staff of 265 employees. Visit their website at Wesleygardens.com.
Thomas H. Poelma, President & CEO Fairport Baptists Homes at 585-377-0350 or firstname.lastname@example.org
James E. DeVoe, President & CEO Kirkhaven at 585-461-1991 or email@example.com
Robert W. Jones III, President & CEO Wesley Gardens at 585-241-2100 or firstname.lastname@example.org