A decision to be proactive in the face of uncertainty in the increasingly crowded market of end-of-life care prompted the recently completed merger between two Triad nonprofit hospices.
The merger was not the result of immediate market forces, rather it came about because of what unknowns may lie over the horizon.
So said Hospice of the Piedmont CEO Trent Cockerman Wednesday when asked about the completion of the merger between his agency and Hospice of Randolph County –– now an affiliate of the Hospice of the Piedmont.
Rhonda Moffit, former president and CEO of Hospice of Randolph County, will serve as president and COO of Hospice of the Piedmont.
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“Neither of our organizations were at a point where we had to do anything,” Cockerham said. “Neither of us were in financial distress. We were looking at the very long view.”
The merger is the second this year in the hospice space, coming just months after Hospice and Palliative Care of Alamance-Caswell and Palliative Care of Greensboro joined forces in March.
This consolidation in a crowded space was foreshadowed less than a year ago when the Triad Business Journal reported on pressures from for-profit palliative care providers putting the squeeze on the more traditional nonprofits.
Largely driven by Medicare reimbursements, the hospice space has grown over the last decade to become a $17 billion per year industry.
The nonprofits that have not yet merged have either undergone significant changes internally or, as was the case a year ago with Trellis Supportive Care in Winston-Salem, a total rebrand.
After operating for decades as Hospice & Palliative CareCenter, CEO Linda Darden and her team decided to change the name and marketing materials in an attempt to stand apart from the numerous emerging for-profit competitors in the region.
Karen Lawler, Trellis’ vice president of business development, pointed to her nonprofit’s branding as having resonated with referral partners, patients and families as well as with staff.
She also stressed Trellis had not been acquired by a for-profit and remains independent.
“A change in Medicare seems to have triggered an increase in mergers and new healthcare companies entering the hospice business,” Lawler said. “However, we remain steadfast in our commitment to providing compassionate and quality care, guided by a mission and not margin.”
Last year, Cockerham said it was too early to forecast if or when Triad hospices might begin to merge to survive. He conceded then, however, the precipice was fast approaching.
Making the decision to merge was an effort to stave off being blindsided down the line, he explained.
“We were thinking about what our strategic capacity would be in the longer term, and realizing that now is perhaps the better opportunity (to merge) than at a point in the future that remains yet unknown when that may be a forced reality,” Cockerham said.
Date: october 04, 2019
Source: Biz Journals