One of Lincoln's oldest care organizations has announced plans to merge its operations with a Minnesota-based senior health care system.
Tabitha, which got its start in Lincoln as an orphanage in 1886 and later became known for its senior care services, said it has agreed to combine with Eventide Senior Living Communities of Moorhead, Minnesota, under an affiliation agreement.
As part of the agreement, set to take effect Oct. 1, Eventide will become Tabitha's parent company. A Tabitha spokesperson said the organization will remain a standalone company and keep its own name and branding while reporting to the Eventide board of directors.
“We are excited to welcome Tabitha to the Eventide family. This strategic decision underscores our shared commitment to advancing senior care,†Jon Riewer, president and CEO of Eventide, said in a statement. “Eventide and Tabitha are both nonprofit, faith-based organizations, sharing similar missions and values. By combining our strengths and resources, we will create a stronger, more resilient organization focused on delivering high-quality care and enriching the lives of seniors."
The organizations said there will be no disruptions to care services as part of the merger. Tabitha has more than 1,000 employees and serves more than 1,000 seniors.
"Uniting with Eventide positions Tabitha to continue our mission-driven legacy of providing compassionate care to seniors in Nebraska,"Â Brian Shanks, president and CEO of Tabitha, said in a statement. "Together, we will leverage our combined expertise to navigate industry challenges and enhance the services we offer."
Tabitha said it entered into the deal to help shore up the organization both financially and operationally. It, like other senior care organizations, has faced a number of challenges over the past few years, including the COVID-19 pandemic, workforce shortages, rising costs and inadequate government reimbursements.
Tabitha's tax filings show that it had net income of about $500,000 in 2022, the most recent year available. However, the filings also show it had combined losses of about $20 million from 2013-2021.
Last year, Tabitha made cuts to its Meals on Wheels program in the face of what then President and CEO Christie Hinrichs said was an $800,000 deficit in the program and a potential $4 million deficit across the entire Tabitha organization.
Eventide, on the other hand, had combined income of about $12 million from 2018-2022, according to its tax filings.
Ziegler Investment Banking last fall that nearly 900 nonprofit senior care organizations have changed ownership or sponsorship since 2015, and while half of those have been sold to for-profit companies, the report said that there's an "increasing view of affiliation as an important strategic option."
"Taking the affiliation route was the most viable manner to help Tabitha evolve into the future and maintain our strong legacy," said Becky Fulmer, Tabitha's executive director of marketing and communications.
"By combining with Eventide, Tabitha is able to take advantage of economies of scale and better weather the shifts in service lines and living communities," she said.