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|Friends Homes, Inc. and The Presbyterian Homes, Inc. to Consider Affiliation|
|FOR IMMEDIATE RELEASE May 19, 2014|
Contact: Timothy J. Webster, President/CEO, The Presbyterian Homes, Inc. (336) 886-6553, ext. 5102
Friends Homes, Inc. and The Presbyterian Homes, Inc. to Consider Affiliation
On Saturday, May 17, 2014, The Board of Trustees of Friends Homes, Inc. (FHI) and on Friday, May 16, 2014, the Board of Governors of The Presbyterian Homes, Inc. (PHI) met, and both Boards agreed to sign a Letter of Intent to consider affiliation with one another.
Joining together would create a nonprofit continuing care retirement organization that would be the leading system in North Carolina and would rank as the 41st largest not-for-profit multi-site continuing care retirement community provider per the LeadingAge Zeigler 100 national listing. The resulting organization would total 1,525 “units” comprised of 1,002 residential accommodations, 225 assisted living accommodations, and 298 skilled nursing beds. The strengths of each organization are complementary. Each nonprofit would keep its strength of identity while joining together.
FHI serves approximately 600 residents and operates two communities in Greensboro, N.C.: Friends Homes at Guilford and Friends Homes West. PHI serves approximately 1,100 residents and is the parent company of three communities: Glenaire in Cary, River Landing at Sandy Ridge in High Point, and Scotia Village in Laurinburg. PHI has a Management Services Office (MSO) in High Point, which houses the CEO, CFO, VP of Operations, VP of Human Resources, Director of IT, and Director of Development. The MSO is structured to extend its resources to additional organizations that would choose to affiliate.
A primary reason for the possible affiliation is the changing healthcare, regulatory environment, and incorporating technology in senior living. This is particularly prevalent as it relates to Medicare and Medicaid reimbursement. An additional reason for affiliation came out of strategic and succession planning for Friends Homes. The acknowledgment that most of the leadership team would approach retirement simultaneously and that to replace the intellectual and experiential capital residing in that leadership team would be a significant cost to FHI was a consideration for affiliation.
The joining together of FHI and PHI would be a commitment of two strong and respected organizations. Both experience strong market reputation and history. FHI has annual revenue of approximately $ 24 million and was established in 1958. PHI has annual revenue of approximately $ 53 million and was established in 1952.
Each nonprofit is financially strong from an operating standpoint. Both have foundations, endowments, or reserves with substantial assets that would remain restricted or designated to their own communities. Neither organization would be dependent on the other for financial strength. A credit profile of the combined organizations shows exceptional financial strength.
The current wide range of pricing plans of both organizations in the Triad would expand price points available for prospective residents so the organizations can serve a more diverse population.
Significantly greater than size would be the potential for mission expansion coming out of two strong organizations strategically choosing to join together. The even stronger organization would be well positioned to meet the growing needs of senior adults into the future. Greater opportunities include economies of scale, increased ability to deal with healthcare regulation changes, increased ability to negotiate with changing payor sources, increased ability to incorporate technology into services for residents and staff, and efficiencies and cost savings in systems support (financial, information technology, human resources, marketing, etc.). The focused geography would enable the combined organization to ensure a strong infrastructure for growth in facilities and services.
If the affiliation were to move forward, FHI’s corporate structure would remain intact. Consistent with the corporate structure of PHI, representatives from the FHI Board of Trustees would serve on the PHI Board of Governors, which ensures strong representation and integration.
The missions of both organizations are focused on service to senior adults in the areas of quality, caring, and wellness. FHI operates in accordance with The Religious Society of Friends’ (Quaker) principles so each resident may realize his/her full potential. The Quaker principles are embodied in five pillars: Simplicity, Peace Testimony, Integrity, Community, and Equality. The mission of PHI and its communities is to provide senior adults with caring and high quality services in support of their physical, intellectual, social, and spiritual well-being. PHI has a covenant relationship with The Presbyterian Church (U.S.A.). Both organizations welcome residents of all faiths. Their missions are inclusive and reflect whole person care including spiritual wellness and high quality.
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Friends Homes, Inc.
Friends Homes, Inc. (FHI) was founded by the North Carolina Yearly Meeting of the Society of Friends to minister to the needs of the 60+ population. In 1968, Friends Homes opened 24 apartments for seniors on New Garden Road. Over the years, Friends Homes at Guilford expanded its communities and services to become a continuing care community with three levels of care. To meet the growing demand for services to seniors, a second continuing care community, Friends Homes West, was built and opened in 1993. In accordance with the Quaker principles, both communities provide, at reasonable cost, an environment which fosters independence and a sense of wholeness, health and security so that each resident may realize his or her full potential.
Friends Homes is comprised of two campuses within the Triad area and ranks in the top 150 of the LeadingAge Ziegler national listing of nonprofit continuing care retirement communities. Friends Home at Guilford is a 20-acre campus and includes 197 residential apartments of independent living, 52 assisted living accommodations and 69 skilled nursing accommodations. Friends Home West is a 50-acre campus and includes 171 apartments of residential apartments, 40 assisted living accommodations, and 40 private skilled nursing accommodations. This creates a total organization of 569 total accommodations comprised of 368 residential apartments, 92 assisted living accommodations and 109 skilled nursing beds.
The corporate structure of FHI is a single entity even though there are two campuses. The FHI Board of Trustees holds all fiduciary responsibility for FHI.
The Presbyterian Homes, Inc.
The mission of The Presbyterian Homes, Inc., (PHI) and its communities is to provide senior adults with caring and high quality services in support of their physical, intellectual, social, and spiritual well-being. It is a church-related, non-profit community service organization that meets?the needs of senior adults in a spiritually nurturing setting. PHI is comprised of three continuing care campuses: Glenaire in Cary, River Landing at Sandy Ridge in High Point, and Scotia Village in Laurinburg.
River Landing at Sandy Ridge is located within the Triad on 150 acres and provides the full continuum of care. Although PHI was founded more than 60 years ago, all campuses have been updated and expanded consistent with the markets they serve. River Landing at Sandy Ridge is a relocated campus from The Presbyterian Home of High Point, PHI’s original community, and it is designed to meet market needs far into the future. PHI ranks 78th on the LeadingAge Ziegler 100 national listing of multi-community organizations. PHI is comprised of 634 residential apartments, 133 assisted living accommodations and 189 skilled nursing care accommodations, totaling 956 “units.”