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Opinion

Lutheran and Mennonite retirement communities to merge

    by Harold Brubaker, STAFF WRITER | Columnist
    Published 

The Lutheran Community at Telford and the Community at Rockhill, separated by less than two miles in Telford and Sellersville, will merge under a new corporate parent after two years of losses at Rockhill, pending board approval expected Oct. 13.

The Community at Rockhill, formerly Rockhill Mennonite Community, had an overall loss of $1 million in the year ended June 30, 2015, and nearly $600,000 in the year ended June 30, 2014, according to its most recent 990 tax form.

"The competitive healthcare environment has challenged our occupancy," though it has improved recently, a Rockhill spokesman said.

Rockhill had total revenue of $20.8 million in fiscal 2015, about the same as the Lutheran Commnity at Telford, which had revenue of $20.6 million in the same period. However, the Lutheran facility had operating profit of $672,362 in fiscal 2015.

The Lutheran Community at Telford's chief executive, Daniel McKee, will lead the new corporate parent. Karen Lehman, Rockhill's CEO, will stay during a transition and then become an industry consultant.

Both tax-exempt organizations are continuing-care retirement communities. Telford has 245 independent living units, 125 personal care beds, and 75 nursing home beds. Rockhill has 206 independent-living units, 53 personal care units, and 90 nursing beds.

The Telford-Rockhill deal is somewhat unusual in that it joins two similarly-sized organizations. In other recent deals in the Philadelphia area, independent communities merged with chains. Examples include Cathedral Village's merger with Presbyterian Senior Living last year and Martins Run's deal with Wesley Enhanced Living in 2014.