Back in April, a spokesperson for The Kenney (WSB sponsor) announced that the continuing-care retirement center was seeking a “sponsor” to take over its operations, and that there were four prospects. Three were named at the time; one of them, Wesley Homes, which operates centers in Des Moines and Auburn, is now the front-runner. Here’s the announcement just in from a representative of The Kenney:
Wesley Homes, based in Des Moines, Washington, has presented a letter of intent to further explore sponsorship of The Kenney in West Seattle. The letter of intent was presented to and accepted by The Kenney board of directors on June 4, 2013.
It is the next step in the process of completing due diligence before Wesley Homes makes a decision to become the new non-profit sponsor. Due diligence typically involves an in-depth review of the operations, physical plant, legal issues and finances, including discussions with the bank lender. The due diligence is expected to take several weeks.
Non-profit sponsors are governed by a volunteer board of directors and within the non-profit sector, the term “sponsorship” is used instead of “ownership.” The Kenney board of directors had interviewed and accepted letters of interest from four potential sponsors.
The other three organizations all cited that they were interested, but that the timing of the transaction or other factors outside of The Kenney prevented them from moving forward at this time.
In today’s complex health care environment, affiliation with another sponsor has proven to benefit senior living providers and the residents they serve. Being part of a larger sponsoring organization often presents opportunities for group purchasing of supplies and equipment resulting in significant savings. Larger sponsoring organizations also have the capacity to implement more efficient systems for billing, accounting, nursing services, dining programs, human resources and marketing.
The Kenney has been under interim management since summer 2012 and the interim management will remain in place through the sponsorship process. Interim Chief Executive Officer, Ed Mawe, with Ontrac Management Services continues to provide staff leadership. The quality services to residents continue in the fine tradition of The Kenney.
According to its website, Wesley Homes has been in operation since 1944, and is associated with the United Methodist Church.