Innovation helps Phoebe survive as nonprofit senior caregiver

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A Conversation With: Scott Stevenson, president and CEO of Phoebe Ministries

LVB: What are the challenges of running a non-profit system like Phoebe Ministries?

Stevenson: The challenges in running a non-profit senior services organization include securing and managing stable funding sources to meet the rising cost of health care operations; recruiting and retaining excellent staff that has a passion for our mission; navigating complex, ever-changing regulatory compliances; and continually innovating and adapting to meet the evolving needs of older adults.

Insufficient Medicaid reimbursement rates, combined with the rising cost of care, are among our biggest challenges. Last year, Phoebe provided $18 million in charitable care. As a reference, in 2008, we provided $5.2 million to our seniors in need. Because of our financial approach, we’ve continued our mission by focusing on our balance sheet strength, which helps us weather any volatile economies that come our way. However, it is becoming harder based on the increasing shortfall of Medicaid funding, and we don’t see this industry challenge going away anytime in the foreseeable future.

Although still a challenge, staffing has recently improved. Our entire team has worked tirelessly to recruit, retain, and recognize our most precious resource: passionate and knowledgeable staff. Phoebe has a rich history of long-term employees, including some who have served our seniors for over 40 years.

As the senior population grows and demographics shift, non-profit organizations must continually adapt their services to meet evolving needs. This may involve expanding or modifying existing programs, reaching out to new communities, or developing innovative solutions to emerging challenges.

LVB: How do you make sure you have the staff and funding to best care for your residents?

Stevenson: As a non-profit senior services organization, Phoebe ensures it has the staff and funding to best care for its residents through thoughtful strategic planning, diversifying revenue streams (including fundraising), efficiently allocating resources, controlling expenses, investing in staff recruitment and retention, and staying involved with our community through partnerships, public education, and awareness. We also invest significantly in maintaining and growing a strong organizational culture.

Phoebe has a diverse and engaged Governing Board with whom I partner to develop a long-range strategic plan that includes both short-term and long-term goals, these include new

program development, capital expenditures, assessment of resident needs, and establishing plans to achieve those goals. We rely on multiple funding sources within this strategy to mitigate financial risks and ensure stability. This may include excess margins from a number of our programs that get reinvested back into the ministry, governmental grants, private foundations, corporate sponsorships, individual donations, and fundraising events like our annual Golf Tournament and Phoebe Gala.

Our interdisciplinary teams regularly review and evaluate budgets, expenses, and workflows to help ensure that resources are allocated efficiently. With this in mind, we implement strategies to attract and retain qualified staff, essential for providing quality care to our residents. This typically includes offering competitive salaries and benefits, providing opportunities for professional development and advancement, and creating a supportive work environment.

Building strong internal and external relationships is critical for the communities we serve. By partnering with other organizations and advocating for policies and initiatives supporting seniors and senior services, we raise awareness about Phoebe’s mission and increase public support for issues impacting seniors.

LVB: How do you recognize your supporters?

Stevenson: Phoebe values the time, talents, and financial support from individuals, foundations, corporations, and the church community. Monetary and in-kind donations are recognized in Phoebe’s annual gift report, which is included in the fall/winter edition of our Messenger magazine. We also acknowledge our supporters through four giving societies: The Century Circle, One Percent Club, 1903 Club, and Legacy Society.

Among Phoebe’s most committed donors are our Century Circle and One Percent Club members. Century Circle donors contribute $1,000 or more to Phoebe in a single fiscal year. One Percent Club members are employees who donate one percent of their annual salary back to Phoebe through annual contributions or by participating in the payroll deduction program. These donors are invited to our annual Century Circle Dinner. As an additional thank you, they are also invited to Century Circle Socials, which are meaningful events hosted by Phoebe residents that enable donors to spend time with those who benefit from their generosity.

Phoebe’s 1903 Club celebrates individuals consecutively supporting Phoebe Ministries for five years or longer. Since founding the 1903 Club, 1,239 members have made 23,927 gifts totaling more than $5.6 million. We are thankful to have such a charitable group that consistently gives and demonstrates how one person can make a difference.

LVB: What’s next for Phoebe Ministries?

Stevenson: Our newest independent living community, Chestnut Ridge at Rodale, opened in February. Residents have been moving in, and they are thrilled with the wellness-focused lifestyle amidst a beautifully-designed renovation of the former Rodale campus in Emmaus.

For Phoebe to remain a thriving and financially sustainable non-profit organization, we must continually look to the future and innovate our services and communities. To support this goal, we recently acquired the Jesuit Center for Spiritual Growth, a 254-acre property that is contiguous with our Phoebe Berks campus. We are currently working with DiMella Shaffer, a senior-focused Boston-based architectural planning and design firm, to envision design concepts, including variations of independent living cottages, apartments, and a personal care community connected by the beautiful landscape and existing buildings. Development approval and plans are anticipated to unfold within three to five years.

Phoebe strives to “lead the way with innovative services that promote fullness of life,” as reflected in our vision statement. Continuing to create beautiful, forward-thinking, sustainable communities for seniors is one of the many ways we fulfill this vision.