“Kirkwood began as a not-for-profit created by the Independent Presbyterian Church to offer continuing care retirement to seniors.”
In parts one and two of our blog series, we talked about the differences between not-for-profit and for-profit retirement communities as well as the benefits of choosing the NFP over the FP organizational structure. We defined an NFP retirement community as an organization that keeps all of its earnings within the organization which is the main difference between the two types of Retirement Communities. Some of the benefits we talked about include the organizational and motivational structure as well as the resident voice in the future of the community. Today we will hear from our President/CEO, Chad Carter about his experience and what he believes sets us, as a not-for-profit, apart from other communities.
What are some of the main things that set Kirkwood apart from similar for profit retirement communities? Our decisions are made based on what best for the resident and their outcomes versus the shareholders bottom line. Once operational cost are met, a small margin is budgeted to ensure we are able to carry out our mission driven focus which is unlike our for-profit competitors. Their decisions are based on the need to create profits for their shareholders and investors.
Explain the purpose and significance of the board for us as a not for profit organization. The significance of our board is the fact that these individuals volunteer their time and talents for the success of the organization. None of our board members are compensated in any way – no stock options, stipends or any other form of payment. They are also local and know the community and its needs well.
What is a benefit of choosing a NFP community over an FP community? The benefits of a NFP community are numerous. But the most important being that our administration and board of directors are able to freely make the best choice for the residents we serve every time because we are not tied to shareholders and “the bottom line”.
In your experience, have you seen any benefit to working for a NFP community over a FP community? I would not voluntarily do this type of work for a FP community. Resident care and a profit motive are diverging realities. To provide good care costs a tremendous amount of resources. I believe that at all times you have to do what is right for the care of residents and every time you actively choose what is right, it will cost you money. For example, think of the extreme measures we have had to put in place with our compensation for nurses and care staff during this time of COVID-19. Because of the hazard pay and other incentives we are able to provide due to our residents-over-profits structure, we have not felt the severe staffing crunch that many of our FP competitors have.