The Evangelical Lutheran Good Samaritan Society, one of the largest skilled nursing providers in the United States, plans to consolidate operations from 22 states to 7 states.
Once the process is complete, the Good Samaritan Society, based in Sioux Falls, South Dakota, will have operations in South Dakota, North Dakota, Iowa, Minnesota, Nebraska, Kansas and Colorado.
About 70 percent of the seniors the organization serves live in those seven states, president and CEO Nate Schema said in an email to employees announcing the merger. Good Sam shared an email with Skilled Nursing News Thursday night.
Good Sam facilities in an additional 15 states currently in service will gradually transition to other operators, according to the email. The organization has not disclosed financial information related to the transition.
In 2022, the LeadingAge Ziegler 200 list ranked Good Sam as the second largest multi-site nonprofit senior living and care organization in the United States. There were 141 communities, 71 of which were nursing homes.
Good Sam merged with healthcare system Sanford in 2019.
“As part of an advanced and integrated health care system, the Good Samaritan Society will have an unprecedented opportunity to shape the future of care and services for the elderly and reimagine how care is delivered at every stage of life. has,” Schema said in an email.
The words echo what he told SNN in his recent Outlook for 2023, in which he described several initiatives underway to “reimagine how we provide care.” We explain our efforts. These efforts include his $350 million virtual care initiative conducted in collaboration with Sanford.
Schema talks about leveraging Sanford’s “resources and expertise” to create innovative healthcare models for older adults, including more advanced clinical capabilities such as dialysis in SNF.
Sanford itself is in the process of working with Fairview, a non-profit healthcare system based in Minneapolis. Ebenezer, Fairview’s senior housing division, ranks as the largest non-profit manager of senior living and care his community on his LeadingAge Ziegler 200 list for 2022, managing 100 communities it was done.
This isn’t the first time Good Sam has had to shift strategy by selling a community or laying off staff. In 2017, the nonprofit laid off 100 people at its Sioux Falls National Campus due to financial pressure. In connection with its partnership with Sanford, the organization has sold 17 locations.
Following the Sanford merger, returning to growth was one part of a three-part strategic plan, as explained by then-President Randy Berry. But this was before the challenges of Covid-19 and the labor market turmoil that followed.
Like other nursing home providers across the country, Good Sam had to evaluate its strategy in the light of severe staffing shortages. As of October 2022, the organization has about 2,000 job openings, Schema told SNN at the time.
Staffing shortages were one of the factors behind the closure of 10 buildings in the last 10 months, and Schema had already suggested market consolidation was being considered.
“If we have a huge hospital presence, if we have a lot of density within our own organization, we have a greater influence. We are totally looking at where the future lies and where we continue to grow our mission,” he said.
The move to focus on the Midwest and Plains State coincides with a broader trend within the nursing home sector that has seen large national operators contract with local operators. Examples include Consulate and Brickyard. Also, the 147 facilities previously operated by his ProMedica in the health system are being transferred to 15 regional operators under a new joint venture between Welltower (NYSE: WELL) and Integra Health.
“Our integrated footprint allows us to focus our resources and investments to continuously enhance the quality of care and services to meet the comprehensive and evolving needs of older people and communities,” Schema said. said in an email announcing and explaining the strategy.
