Mechanicsburg, PA-based Messiah Lifeways and Chambersburg, PA-based Menno Haven have entered into a memorandum of understanding to explore a possible affiliation. Both continuing care retirement communities have faith-based missions rooted in the Anabaptist tradition.
Messiah Lifeways has been looking for an opportunity to affiliate with a like-minded organization in the belief “that it will help make us a stronger combined organization,” Karl Brummer, president and CEO of Messiah Lifeways, told the McKnight’s Business Daily.
“We’ve developed a relationship over the years with Menno Haven,” he said. “The idea to kind of come together with a like-minded mission of, ‘How do we enhance the lives of the residents and team members in a “stronger together” position?’”
Hugh Davis, president and CEO of Menno Haven, told the McKnight’s Business Daily that from his perspective, as the senior housing and care industry is becoming more complex, it is becoming more difficult for a single-site organization to succeed.
“We need more intellectual capital, so having more people at the table to solve problems, collaborate and to continue to position ourselves to provide the mission that we both deeply believe in for the residents we serve — we believe we’re stronger together,” Davis said.
Consolidation within the industry is becoming the norm, according to Davis, “and being with an organization that is like-minded, I think, can keep us on stable footing for years to come and position us to be able to serve our mission.”
Exactly what the combined company will look like is still under discussion, but both executives said that they are optimistic that a merger of some sort will happen. Since the companies are of equal size and offer the same levels of care and service, they will likely maintain their separate identities, the men said.
“We both have strong brands locally, so we don’t see the local brands changing at all,” Brummer said. “A ‘merger of equals’ is kind of the language we’ve been using internally.”
A steering committee has been formed of executive leaders and board members from both organizations. The memorandum of understanding sets a six-month time frame to work out the details, but Brummer noted that the time can be extended if necessary.
“If we have to extend that, we will, but we felt that six months is kind of a frame to begin making decisions,” he said.
