Ep. 114: Partnerships and Joint Ventures in Senior Living

Kim Hoppe, Chief Financial Officer at Brio Living Services talks with us about partnerships and joint ventures in senior living.

In this episode, we have invited Kim Hoppe, Chief Financial Officer at Brio Living Services to talk with us about partnerships and joint ventures in senior living. At Brio Living Services, they have approached a number of partnership and collaboration opportunities by defining their organizational culture, fostering curiosity, setting clear return on investment expectations, overcommunicating with stakeholders, seeking objectivity, addressing challenges early, learning from industry peers, embracing measured risk within established guardrails, and approaching difficult decisions with a soft heart.

Evolution of Brio's Strategy [02:08]
Kim discusses the development of Brio's strategies, particularly in home and community-based services. She highlighted that the expansion of these services had been ongoing for the past 10 to 15 years, well before she joined in 2016. This strategic move has significantly contributed to Brio's revenue and impact in serving various communities.

[05:50] They built joint ventures with friendly competitors to provide services efficiently and meet the needs of their local communities. The strategy was driven by the pursuit of diversification, innovation, and financial sustainability, focusing on organic growth and partnerships.

Preparing for Partnerships and JVs [14:29]
Using financial guardrails as part of their strategy sets minimum short-term and long-term financial goals for Brio. These financial guardrails provide a framework for evaluating partnership opportunities and help understand where potential partnerships can take the organization concerning its financial goals and objectives.

Identifying Priority Services [37:09]
The approach taken by Kim and Brio in prioritizing services for pursuit is a multi-faceted one. They establish clear financial guardrails, emphasize the importance of scale and mission alignment when evaluating opportunities and, when necessary, hire a third party to develop an objective evaluation tool to assess potential partners. This process has helped the organization narrow its options systematically and maintain objectivity throughout decision-making.

Finding Potential Partners [40:41]
Brio has used various methods to identify organizations as potential partners. They have employed formal and informal approaches based on the level of risk associated with the partnership. This flexible approach allows them to tailor their partnership identification methods to each situation's needs and circumstances.

[42:45] Kim also stresses the need for appropriate governance and due diligence in evaluating potential partnerships, objectivity, and third-party knowledge to ensure that the process is driven by the organization's best interests and fiduciary responsibilities. While relationships are crucial, they should be complemented by objectivity and a deep sense of responsibility to make informed decisions that benefit the organization.

Challenges in Partnership Discussions [46:32]
Honesty and transparency are important from the beginning of negotiations. Kim emphasizes that not being forthcoming about control issues, financial concerns, or cultural mismatches can be a significant roadblock to successful partnerships or affiliations. Cultivating a culture of open communication and trust is essential for the success of any collaboration.

Advice for Senior Living Executives [48:11]
Kim encourages everyone to balance embracing innovation and change while staying true to an organization's mission and values. She emphasizes the need for effective communication, objectivity, and a willingness to learn and adapt in an ever-evolving industry.

You can connect with Kim on LinkedIn... learn more about Brio Living Services at https://mybrio.org/

About Our Guest:

Kim Hoppe joined Brio Living Services in May 2016, serving as the Vice President of Finance. She was promoted to the Senior Vice President of Corporate & Financial Services position and since 2019 now serves as the Chief Financial Officer. She has a Bachelor of Business Administration in Accounting from Western Michigan University and is a Certified Public Accountant.

Kim has over 25 years of experience with Senior Living/Non-Profit Auditing & Consulting, Medicare & Medicaid reimbursement team leadership and development, financial operations, project management, strategic planning and business development.

About the Show:

Subscribe to be notified of new episodes of Senior Living Visionaries as they are published! Visit https://www.peaktoprofit.com/podcast-subscribe.
Know someone who would make a great guest on the Senior Living Visionaries podcast? Apply here: https://airtable.com/appCRz6ks....

Categories: Growth, Leadership, Mindset, Podcast, Strategy