Frequently Asked Questions about Intent-to-Merge Announcement
Hospice and Palliative Care of Alamance-Caswell (HPCAC) and Hospice and Palliative Care of Greensboro (HPCG) have announced plans to explore combining organizations in Fall, 2019. Here are topline answers to questions that have been asked relating to this announcement. Many details will be worked out in the coming months, and more information will be provided as it is available.
- Why are our two Hospice organizations considering merging?
HPCAC and HPCG share a like-minded approach to providing care as mission-driven, not-for-profit hospice organizations. Combining operations will allow us to eliminate overlapping service areas, avoid unnecessary duplication, adopt the best practices of both organizations and better align us with healthcare providers. It will also strengthen our long-term position as a leader among hospice providers in a rapidly changing healthcare environment. There are a growing number of for-profit hospices entering the Triad market, while Medicare changes are impacting how hospice care is reimbursed. This alignment between the two organizations will help ensure our communities have high-quality, not-for-profit hospice care for years to come.
- What will be the new name of the organization?
At this point, we have not decided on a name for the combined organization. This is one of the issues we will be discussing in the coming months as part of the due diligence process. In addition to a new name, we anticipate that we will craft new vision and mission statements for the combined organization.
- What operational efficiencies are expected to be achieved?
We project a number of efficiencies will be gained as our two organizations come together. We can better share resources, have greater purchasing power, eliminate duplicating services and be able to recruit a deeper talent pool of nurses and staff to join an already excellent team.
- Is this merger being driven by financial difficulties at either hospice or is one hospice taking over the other?
This potential merger is being driven by positions of strength from both organizations, not weakness. We both are in solid financial and operational shape, and we could easily continue on our current paths. But we know that the healthcare landscape is continuing to evolve and there are multiple for-profit hospice competitors in this region. If we want to maintain our mission to provide not-for-profit services to patients and families, then we must be strategic and proactive.
- What does the merger mean to families currently being served by Hospice?
There is no immediate impact or changes to any services for families. Our primary focus during this transition process will be to ensure there are no disruptions or impact to the quality of care we provide. We will need everyone’s help and involvement to ensure this is a seamless transition.
- Are there any immediate changes in operations at either Hospice?
No, there are no immediate changes planned for either organization. We are forming a transition committee and will develop a clear schedule for due diligence and merger planning. Both boards have to approve the final merger plan, which we hope to compete by Sept 30. We have a number of months to think through and execute the transition.
- Are there any immediate changes for volunteers at either Hospice?
No, there are no immediate changes planned that will impact our volunteers.
- Will there be staff layoffs when the merger is complete?
The boards of directors for both organizations have committed there will be no staff layoffs as part of this process. While it is likely that some job descriptions or roles may be shifted as we consolidate operations to best serve patients and families, every employee will have the opportunity to remain with our organization. As we move forward the planning process, we will be transparent in sharing information and communicating what is happening.
- When will the merger happen?
The planning process will begin immediately as we form a merger transition team and conduct due diligence to determine the best way to combine our operations. We hope that everything will be in place by September 30 so that we can begin officially operating as one organization on Oct 1, 2019. That will include our adopting a new name.
- Where will the combined hospice operation have its headquarters?
That decision has not yet been made. The merger transition team will recommend where operations will be headquartered. We do know that there will be no closures to any office or patient facilities in Burlington or Greensboro.
- What will happen to the community store in Burlington?
We do not envision any changes to the Burlington community store. In fact, we believe the store will have an even more important role, serving as a community resource and revenue generator in the coming years.
- If I want to donate to Hospice, do I need to do anything differently right now?
No, there are no changes that will impact donors at this time or the foreseeable future. All donors will continue to be able to designate funds or direct their contributions to specific programs.
- How does the merger impact the philanthropic work of the foundations?
Each organization has a rich history of community support and each relies on philanthropic dollars to provide and sustain services. The merger transition team will be tasked with recommending the best way to organize fundraising and stewardship activities that preserve donor intent as we generate support for the future.
- What services will the combined organization be adding or cutting?
We do not have any plans to cut or add services at this point in time. We will be using the due diligence and transition process to map out the best way to serve patients and families in Alamance, Caswell, Guilford and surrounding counties. Our services will be determined by how we best fulfill our mission as not-for-profit organization dedicated to helping with end-of-life care needs.
- How many patients will the combined organization likely serve on an annual basis?
We estimate our combined organization will serve more than 3,000 patients on an annual basis with thousands of additional community members utilizing a wide range of palliative healthcare, education and counseling services.
- Who will lead the combined organization?
As part of the due diligence and merger transition process, we will be determining the leadership structure for the combined organization. We do know that Peter Barcus is expected to continue in a senior strategic consulting role while Kristen Yntema, current CEO of HPCG, is expected to remain as CEO after the merger is completed. Caroline Durham, CFO of HPCAC, will assume the CFO role in the new organization as James “Tab” Haigler, CFO for HPCG, will move into a consulting role.