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Thursday, March 30, 2023

Big Merger of Providers

Laura Lovett at Behavioral Health Business:
Intellectual and developmental disability (IDD) nonprofits Merakey and Elwyn have announced their intentions to merge.

The pair recently signed a non-binding Memorandum of Understanding to create a joint company with a 12,000-person workforce caring for 55,000 individuals in 16 states. The partners said the merged company will be focused on delivering holistic care and coordinating physical, behavioral and educational services for people with IDD.

Combining the companies’ entities would create a business with just under $1 billion in annual revenue. Last year, Merakey reported $618 million in revenue, with Elwyn reporting roughly $385 million.

“We believe that this combination could dramatically improve the delivery of programs and services for our individuals and improve their quality of life, and we are tremendously excited about its potential,” Joseph S. Martz, CEO of Merakey, said in a statement. “An affiliation would maximize the resources to allow for significant new investment in programs and permit technology improvements that would be game-changing in terms of delivering a coordinated array of services.”

Lafayette Hill, Pennsylvania-based Merkey operates in 12 states. It provides behavioral health, IDD and educational services. The provider will bring 8,000 employees to the merger.

Meanwhile, Elwyn is a Media, Pennsylvania-based provider that offers education, treatment and supportive services to children and adults with autism and IDD. Founded in 1852, the provider currently operates in eight states.