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As it continues working to fund new programs and reduce a multi-year deficit that predates the pandemic, Heritage Ministries is holding an auction Sept. 16 at its Gerry campus that includes everything from trucks and tractors from its shuttered equestrian center to restaurant equipment.
It’s the next step in a strategic plan by the $95 million Chautauqua County organization designed to further reduce debt and refocus on its core mission of housing and health care services for older adults, said Lisa Haglund, president and CEO.
“We have to focus in on our core market and our core mission,” she said. “We know what we can do well and we need to focus on that here.”
Closed since fall 2020 as a cost-cutting measure, the Homestead Stables Equestrian Center in Gerry included an indoor arena with bleacher seating, conference center with viewing center plus more than 42 horse stalls available to residents and the public. The center, which opened in late 2018, offered horse training and riding lessons as well as a therapeutic riding program.
“Now that we’ve come out of the pandemic, we’ll determine what the future is for that building,” she said. “What does our community need and what are we lacking?”
With 10 nonprofit senior-living communities in four states and a combined budget of about $95 million, Heritage Ministries operates skilled nursing, assisted living and independent living sites serving 2,500 residents with a staff of 1,400.
Haglund took over as CEO in spring 2020, inheriting an $8 million deficit from 2019. In the years since, operations have steadily improved, with revenue growing from $91 million in 2019 to $95 million in 2021, while the deficit flipped to a $1.98 million surplus in 2021.
For 2022, the organization had an operating loss of less than $2 million, with 75% attributed to “uncontrollable” investments losses tied to declines in the market. The organization is also working to pay off $3.5 million in unpaid debts tied to Covid testing and PPE, as well as inflation and increased costs for labor and supplies.
A restructuring is underway that includes both closing the equestrian center and expanding wellness and outpatient therapy services, as well as additional programs for people with dementia. The plan could also include offering supportive housing in the future for veterans and homeless seniors, as well as more services for higher acuity patients.
Haglund said the organization is also ending two management services agreements in mid-November for out-of-state sites, including the Kenney in Seattle and Hearthstone Communities in Woodstock, Illinois. Those deals also included capital infusions, and the Kenney owes the organization $5 million, she said.
Haglund says restructuring will also help address ongoing challenges tied to how skilled nursing and senior living facilities are reimbursed for services and ongoing cost increased tied to inflation and labor shortages.
“Skilled nursing is not working the way it used to and while we are climbing out of where we were, we want to transform how we offer care. And we’re not going to do that by breaking even,” she said. "It’s our goal not to do what some other organizations have done, such as bankruptcy, but really find ways to pay that debt down organically.”
No. of independent living units
| Rank | Prior Rank | Name/ prior (*new or not ranked)/ URL |
|---|---|---|
1 | 1 | Canterbury Woods Williamsville |
2 | 2 | Brothers of Mercy Senior Apartments |
2 | 3 | Montabaur Heights |