LIHU‘E — Easter Seals Hawai‘i and the Arc of Kaua‘i jointly announced a merger of their operations. “They operated as one from noon today,” said Mike Belles, one of the guests at the lu‘au celebrating the merger Tuesday evening at
LIHU‘E — Easter Seals Hawai‘i and the Arc of Kaua‘i jointly announced a merger of their operations.
“They operated as one from noon today,” said Mike Belles, one of the guests at the lu‘au celebrating the merger Tuesday evening at the Kaua‘i War Memorial Convention Hall.
The transaction is designed to help ensure the sustainability of the Arc’s programs and services by aligning with ESH — a statewide organization — which has served Kaua‘i children and families for more than 40 years, states a press release.
In a “Did you know?” statement by emcee Ron Wiley of the KQNG Radio Group, Wiley said the Arc has been providing services for 53 years.
The merging of the two organizations will also enable greater program capacity to benefit all children and adults with disabilities in the organizations’ service communities on Kaua‘i.
“Most of the clients at the Arc are graduates of ESH,” Ellen Ching, the director of the Arc said. “ESH handles the children and the Arc takes care of the adults.”
ESH was contacted by the Arc in late 2008 about the possibility of joining operations, and subsequent meetings followed to explore the benefits for both organizations and the families they serve.
Due diligence was completed over the summer, and effective Sept. 1, the Arc’s programs, services and other assets will be under management of ESH.
John Howell, president and CEO of ESH, likened the “marriage” to the recent deal between Walt Disney and the Marvel Group. The two organizations represent the oldest and most respected non-profit providers of programs and services to individuals with developmental disabilities and their families on Kaua‘i.
“Our two organizations are equals in terms of mission, organizational integrity, ethics and commitment to quality,” Howell said. “When I sat in on a meeting with the Arc’s employees, it was just like sitting with our own employees because they have same values.”
Howell said the Arc of Kaua‘i is aligning itself with a well-established statewide organization, and from the perspective of ESH, will provide an expanded presence on Kaua‘i in a time when competition for employees and demand for services are greater than ever. He said new talent and ideas will be introduced for both organizations.
ESH has met the Arc families and employees to discuss the transition and answer questions.
Currently, the Arc employs 64 staff, and ESH employees more than 400 staff statewide with 14 on Kaua‘i providing early intervention programs and services, the release states.
ESH also manages CARF accredited Adult Day Health and Support Services programs under the Medicaid waiver — similar to the Arc on Maui and Lana‘i, O‘ahu and in Hilo. Combined revenues are approximately $18 million with a majority of funding from Medicaid Home & Community Based Waiver DD/MR program contracts.
“The Arc of Kaua‘i approached Easter Seals Hawai‘i in order to ensure the sustainability of our programs and services,” said Ellen Ching, executive director of the Arc of Kaua‘i. “In the face of uncertain funding from government and private sector sources, this transaction will enable both organizations to achieve greater economies of scale in the areas of operations, continuing education, program expansion and new program development.
Wiley, who sits on the board of the Kaua‘i United Way, was a guest along with former Kaua‘i United Way president Carol Furtado and Kaua‘i United Way office staffer Lori Almarza.
“Kaua‘i United Way is proud to have served both organizations, and hopes to continue to work with Easter Seals Hawai‘i to continue its work on Kaua‘i,” Wiley said.
The most significant benefits of the transaction will be realized by the many Kaua‘i families that rely on both organizations for crucial services. A new and stronger entity will provide a more sustainable continuum of care, particularly in light of increased operating expenses, decreased Medicaid reimbursements, a more highly competitive fundraising environment and the uncertainty accompany the arrival of managed care to the state, the release states.
While the Arc may retain certain program names, the name of the surviving statewide entity would be Easter Seals Hawai‘i.
On the ever-changing landscape of health and human services, strategic non-profit providers must seek out new and innovative ways to manage resources to increase efficiencies and decrease costs while continuing to provide the highest quality of services, the ESH release states.
• Dennis Fujimoto, photographer and staff writer, can be reached at 245-3681 (ext. 253) or dfujimoto@kauaipubco.com.
