JAMESTOWN – A Jamestown senior care provider is joining forces with a much larger Western New York senior health system.
Niagara Lutheran Health System, based in Buffalo, announced on Tuesday morning that Lutheran Jamestown is now part of the Lineage Group.
Officials say the new entity will operate as a passive super parent organization to help oversee strategy and operations, and create efficiencies, paving the way for an active parent arrangement.
In June 2019 Lutheran first joined the partnership along with Schofield Care in Buffalo.
“This innovative nonprofit affiliation model will ensure patient-focused care remains at the core of our collective mission, provided by individuals who live in, and are invested in, the local community,” said Christopher Koenig, President & CEO, Niagara Lutheran Health System, speaking on behalf of the three organizations.
Koenig says the affiliation will empower the member organizations to deliver high-quality care more efficiently by enabling Lineage Group to share clinical guidelines, maximize Medicaid reimbursement, and reduce combined overhead costs.
Not only do Lineage Group members plan to solidify their respective finances going forward, but Koenig says the goal is to expand this new collaboration’s reach to welcome other similarly situated partners as an alternative to sale or closure, providing a template for other organizations to emulate.
“This nonprofit collaboration model provides greater benefits to the residents and community than the for-profit alternative,” Koenig added. “Free of the financial obligation to generate returns for investors, nonprofit senior care organizations are able to re-invest their profits into their operations and communities, leading to superior clinical outcomes, more satisfied employees, and enhanced patient and community welfare.”
Increasing financial pressures throughout the industry have led to the closure or sale of 21 percent of New York State’s nonprofit skilled nursing facilities over the past five years.
A separate Board of Directors and by-laws will be established to support the integration of the three affiliates into Lineage Group.