Nonprofit Merger Case Study: Menorah Park - Montefiore Senior Care
In the final merger of the nonprofit merger case study series, NMBL examines the merger of two of Northeastern Ohio’s largest senior care nonprofit organizations. The Menorah Park Center for Senior Living was founded in 1906 and employs 1,400 people at its 42-acre campus in the Beachwood area of Cleveland. Serving the same community, Montefiore’s campus, established in 1882, is adjacent to Menorah Park and employs 600 individuals. This merger brings together these two pillars of the community and crafts an organization rooted in experience and considerable resources. Driven by shared values and a desire to work together toward a common goal, this merger is a quality example of the strategic use of nonprofit mergers.
Approved on March 3rd and completed on June 30th, the nonprofit merger formed one organization that will operate under the Menorah Park name, although the Montefiore name will remain on its facility on the campus. The merger created an approximately $120 million nonprofit, based on each organization's 2019 expenses. Broken down, those expenses show that Menorah Park possessed a worth of $82 million and Montefiore, $42.7 million. Not only do these organizations combine great wealth financially but also in other resources. In terms of beds with accompanying certified staff, Menorah offers 355 beds, and Montefiore, 233. The new organization will retain the current CEO of Menorah Park, James Newbrough, as CEO of the combined nonprofit. The current president and CEO of Montefiore, Seth Vilensky, will serve as vice president of business development and community services for the new organization. The overall goal of the merger was to stop competing for the same clients and instead, combine their separate resources to achieve their shared goal.
Once again, this is a case in which two successful and financially viable organizations came together to create something greater than their separate parts. Menorah park provides seniors with a wide range of living options as well as the care they need, but by combining their operations with Montefiore, they now increase their capacity to offer skilled nursing care, rehabilitation therapy, home health care, memory care, assisted living, and hospice. In the press release announcing the merger, the organizations cite a desire to stop using resources to manage two very similar organizations. They chose to set their independent interests aside and create something bigger than themselves. This results in incredible stewardship in the community and is what nonprofit work is all about. The organizations are not only similar in their mission but also share a foundation built on Jewish values. They come together to combine their efforts but also to share their unique skillsets. This is an incredible example of what a strategically planned nonprofit merger can do for organizations and the communities they serve.
Made clear throughout this nonprofit merger case study series, combining assets, fundraising networks, and experienced staff are highly effective ways to boost an organization’s success. The Menorah Park and Montefiore Senior Care merger bring together all the elements that create successful nonprofit mergers. From shared values, common goals, and incredible personnel and financial assets, these organizations came together in order to create an incredible strategic alliance in order to best support their shared mission. With the end of this nonprofit merger series, it is important for nonprofits to recognize the power of mergers to create a more sustainable and efficient nonprofit industry that brings together unique experiences and expertise for the good of the community.
Whether your organization is seeking strategic planning, leadership development, or change management, the NMBL Strategies’ team is prepared to offer their 30+ years of nonprofit and small business executive experience to support your goals. Reach out to us today at info@nmblstrategies.com to learn more about our insights and services.