Many older Americans say they would prefer to remain in their homes as long as possible, and a growing number of senior living providers are working to capitalize on this. A number report success in adding a home and community-based services sector to their company offering. Ziegler reports that 32.5% of senior living providers are considering offering an at-home care program in the upcoming years. The senior living sector is also seeing companies explore joint ventures and partnerships between senior housing and home health care providers, in order to produce a combined offering to generate extra revenue. Senior living providers thinking outside the box are beginning to recognize that home health care could be a strategic growth opportunity. One senior living company in Michigan has sought to capitalize on this opportunity by entering into a joint venture with a home health care company.
Presbyterian Villages of Michigan and Homestead Home Health Care Inc. have formed a joint venture named Care Sync Solutions, LLC. Homestead is a for-profit corporation that offers comprehensive home care services across the state of Michigan. Presbyterian Villages is a non-profit company that runs 25 senior living communities throughout Michigan. The name Care Sync Solutions reflects the goal of the joint venture – “to facilitate more synchronized care so that seniors can remain in the most independent setting for as long as possible.” Care Sync will utilize the capabilities of both companies to provide services including private home care, skilled care, transition programs, tele-health based initiatives, and transportation.
Roger Myers, President and CEO of Presbyterian Villages said of the joint venture – “We have relationships with different health systems and with the new joint venture, we’ll be looking to leverage those relationships and new ones. The response in the first few weeks has been very favorable, and it plays right into what’s going on with health reform and health delivery. And it opens up doors to health systems and payors by integrating care, being more efficient, effective, and driving better outcomes.” The joint venture entity is expected to generate between one half million and one million dollars of business in its inaugural year of operation.
Care Sync Solutions is designed to generate opportunity to both partner companies. It will help Homestead expand from its current market, limited to eight counties, utilizing Presbyterian Village’s statewide presence. The joint venture will also help Presbyterian Village position itself into the home healthcare space and ever-evolving senior care market. The two companies believe that by combining resources and each entity’s specialties and strengths, they are stronger together.
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Is your company considering a joint venture? Let the experts at Cambridge Realty Capital help. For any questions regarding finance and capital for your senior living initiative, contact us. Our dedicated experts are standing by to help you improve your community.
