You’ll lose your independence!
They’ll re-define your mission!
I would watch out for private equity if I were you.
With affiliation, that’s wrong, wrong, and wrong again.
“Affiliation is a true partnership, not a slash-and-burn endeavor,” says Jay Deppeler, former CEO of Edison Court, which underwent a hugely successful affiliation with Inperium. “Employees, culture, mission all remain priorities for the affiliate post-affiliation.”
A mental and behavioral health care provider out of Doylestown, Pennsylvania, Edison Court found Inperium while looking for a growth plan. They found that and more. Inperium is a nonprofit consolidator and orchestrator, which partners with health and human services organizations to create a resource-rich network that benefits all involved. Edison Court was their third affiliate.
“I had not heard of the construct of an affiliation model, the model that (Inperium CEO) Ryan Dewey Smith approached us with,” says Deppeler, now Inperium’s EVP and Chief Development Officer. He learned quickly that there are three big myths about affiliation, and that the providers who push through them achieve unprecedented results, like the provider that flipped an annual $1 million operating deficit to a record $3.8 million net income.
“Inperium is not an operationally focused organization,” Smith says. “It is a support organization and orchestrator of the businesses.”
Here is a look at three big myths on affiliation, and why affiliates are bullish on Inperium.
Myth #1: By joining Inperium’s network the provider loses independence.
Truth: Joining Inperium is a partnership, not a merger.
When an affiliate enters the network, it retains its name, assets, local culture, legacy board and management team, and is offered a seat on Inperium’s board of directors or advisory board. Affiliation also gives affiliates access to scalable back-office capabilities.
“If we have 50 nonprofit organizations operating in the health and human services space, they all need HR, IT, legal, risk management, etc.,” Deppeler says. “Rather than having them occur in silos, consolidating and scaling them behind the scenes in ways that deliver that significant savings to every affiliate is a major game-changer.”
Myth #2: Joining Inperium means relinquishing control.
TRUTH: Inperium does not take an ownership stake.
“We believe in complete transparency and want our affiliates engaged and involved in governance matters through our affiliate advisory board,” Smith says. “That’s why affiliates have a seat at the table: to participate, provide feedback and understand the evolution and strategic goals of the organization overall.”
Myth #3: Inperium’s affiliation model is synonymous with a for-profit private equity model.
TRUTH: Inperium is a nonprofit 509(a)3 “supporting organization,” which is the antithesis of private equity.
“Generally, when private equity gets involved with businesses, they typically have an exit strategy of three to five years,” Smith says. “Inperium strategy is the opposite: it’s perpetual.”
For Edison Court, affiliation charted their new path forward. They never looked back.
“The sole member affiliation structure is near and dear to my heart,” Deppeler says. “It preserves local culture but takes advantage of the scalable support services that happen behind the scenes.”
This Views is sponsored by Inperium. To learn more about what affiliation can do for you, visit inperium.org.