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Presbyterian Villages: Innovative Strategies to Access Capital

by Published On: Mar 14, 2012
Presbyterian Villages of Michigan

Presbyterian Villages of Michigan (PVM), a LeadingAge member based in Southfield, MI, has earned a reputation for using innovative strategies to access capital.

Recent successes have helped the organization expand its mission in a number of southeast Michigan communities while gaining national recognition for those efforts from the Listening Post Project at Johns Hopkins University (JHU).

Partnership and Grant

PVM made headlines in early 2002 after it partnered with a local medical center and received a generous grant from a Florida-based foundation.

The partnership between PVM and the Detroit-based Henry Ford Health System will allow both organizations to create the Center for Senior Independence. According to Crain’s Detroit Business, PVM paid $2 million to purchase a 45% interest in the center, which is modeled after the national Program of All-Inclusive Care for the Elderly (PACE). 

The center is expected to serve 1,000 older adults over the next 4 years.

A 2-year, $1 million grant from the Edward N. and Della L. Thome Memorial Foundation will help PVM develop and launch diverse services to older adults living in its communities and their surrounding neighborhoods. 

PVM is working with the Luella Hannan Memorial Foundation in Detroit to design the initiative, which will provide housing, medical coordination and activities to help participants live in the setting of their choice.

The Listening Post Project

The Listening Post Project, sponsored by JHU’s Institute for Policy Studies, is designed to help nonprofit organizations respond in a timely fashion to a range of critical challenges.

The Project had created partnerships with nonprofit umbrella organizations in 4 key areas, including elderly housing and services. It also enlists the help of organizational “listening posts” like PVM to help it monitor developments in the nonprofit world.

In a recent interview on Listening Post Project, PVM President and Chief Executive Officer Roger Myers said that his organization uses 4 strategies to enhance its ability to obtain investment capital:

  1. Improved operations and key financial ratios generate the cash necessary to build liquidity, meet debt obligations, limit reliance on short term lines of credit, invest in routine capital improvements and sustain value-added programs, he says.
  2. Accurate and timely reporting is critical to meeting regulatory, investor and lender requirements, says Myers. But it also helps PVM obtain follow-up capital investments and lending. 
  3. A diverse set of financing relationships and arrangements allows broader access to investment capital.
  4. Expanded community relations and philanthropic outreach increases the base of individuals, corporations and foundations engaged in PVM’s mission and vision. It also helps the organization gain access to capital from other sources and sustain its initiatives.

About PVM

PVM provides a variety of living options and services in 23 communities, which include continuing care retirement communities, subsidized senior housing and market-rate senior housing. It also sponsors community outreach and health ministry programs including parish nursing, home health care and personal services. 

The organization has assets of over $200 million, an annual budget of over $50 million, 650 employees and more than 500 volunteers.

 



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