Opportunity Center merger a long time in the making
Grant, La Crosse, Crawford counties agencies will combine at start of the year
By Steve Van Kooten
On Aug. 8, the Opportunity Center in Prairie du Chien announced that they will merge with the Southwest Opportunities Center in Lancaster and Aptiv in La Crosse beginning on Jan. 1.
According to a press release from Aptiv, the combined organization “will create a stronger, more sustainable network of disability services, improving access and resources for individuals and families across the region.”
“This is an exciting step forward that builds on our deep, local roots while opening new possibilities for the people we serve,” said Jenny Felty, president and CEO of Aptiv. “By combining our missions, strengths and expertise, we can grow, improve and support one another in ways that wouldn’t be possible alone.
“This merger is about building a future where more people with disabilities have access to the resources, support and opportunities they deserve. ”
The agencies do not plan to reduce the programs they offer; instead, the move may allow them to expand options for their consumers.
“Maybe they’re doing something in Lancaster that we’re not doing, so we’re coming at it from a ‘Let’s not take away; let’s see what we can add,’” said Pam Ritchie, CEO of the Opportunity Center.
According to Ritchie, none of the companies are looking to cut their payroll because each one is already “incredibly lean” without any fat to trim.
Even though the merger will be completed at the start of the year, fully integrating the organizations may take years to complete.
“There are going to be plenty of obstacles when you’re trying to merge three organizations’ systems and processes,” said Ritchie. “You’re talking about accounting services, human services, benefits and payroll systems and different types of programming.”
How it started
Ritchie, who will stay on as the CEO of the Opportunity Center’s manufacturing and warehouse business, said conversations between the agencies started over a year prior to her announcement.
“I visited an organization in Maquoketa, Iowa, and they were in a situation of trying to figure out how to become sustainable. They decided to merge with several companies, and they are now the largest provider in the state of Iowa,” she recalled. “They came together and looked at systems and processes and what worked best, creating an organization that has a lot of uniqueness with its own programs and an administration operating at a corporate level.
“They’ve become large enough that they always have a seat at the table when it comes to discussion at the state level. They are large enough that they’ve found economies of scale to cut costs. I liked what I saw.”
Discussions began with 14 providers in Wisconsin, and the Opportunity Center, along with Aptiv and Southwest, felt “a strong alignment.”
Ritchie noted that the Opportunity Center is a “solid, financially stable organization,” and combining with other agencies is about what lies ahead for their industry.
“We don’t need to do this right now, but we have the vision to realize this is the future,” she said.
As managed-care organizations cut services that are funded and covered by insurance and Medicaid, agencies like the Opportunity Center are struggling to provide services to their consumers.
“We have to be smarter to look beyond where we stand at the moment and where the industry is going,” said Ritchie. “How do we ensure that we are going to continue to be here for families? The way we do that is by being together.”
She added that the volatile Medicaid market and dwindling service dollars will become a major problem for smaller agencies serving local areas.
“I am so sure this is the right thing to do. I’m not nervous; I’m excited. I think this is how we’re going to be able to keep doing what we do for the next 60 years,” said Ritchie. “We’ve done literally everything we can do standing here on our own. We’re doing it right, but that won’t be enough in the future.”
