Visiting Nurse Merger Stalls

Talks Between Two Key Agencies to Form One Nursing Service Approach
Time of Decision After Thirteen Months

By JULIA WELLS

Talks about a potential merger between the Island's two
visiting nurse agencies have reached a critical juncture, and the next
few weeks will determine whether the merger becomes reality or falls
apart, leaders from both agencies said this week.

"We continue to talk," said Robert Tonti, the chief
executive officer of the Vineyard Nursing Association. "But we are
probably going to get to a point very soon where we decide whether we
are going to finish this - or not," he added.

"It is still quite up in the air, but I think everyone is in
agreement that we have to come to some definitive understanding,"
said Susan Wasserman, president of the board of directors of
Martha's Vineyard Community Services, the parent organization for
the Visiting Nurse Service.

The two agencies have been discussing a merger since January 2005.
Both are nonprofits; the Vineyard Nursing Association stands alone,
while the Visiting Nurse Service functions under the social services
umbrella of Community Services.

Both agencies lose large sums of money on an operating basis, and
depend on fund-raising to meet their annual budgets; the proposed merger
is aimed at creating efficiencies by reducing administrative costs.
Neither agency releases its financial statements to the public, although
each depends heavily on private donors to contribute nearly $300,000
each year, which is used to close the gap in annual operating deficits.

Although there is some overlap, each agency also provides different
services in the community. The Vineyard Nursing Association provides
home health care almost exclusively, both skilled and unskilled. The
Visiting Nurse Service provides some health care; it also has contracts
with the Island towns to provide health services, including flu shot
clinics, and it provides home visits for mothers of newborn babies.

Mr. Tonti said this week that the talks between the two nursing
agencies had progressed to the point where a pro forma was developed on
paper; the idea is to create a single, independent nursing agency, as
opposed to one agency taking over the other.

But it is no longer clear whether that is possible, in part because
the two nursing agencies are at markedly different places when it comes
to their own internal business affairs.

The Vineyard Nursing Association, with Mr. Tonti at the helm, is
pursuing a forward-thinking business plan that includes, among other
things, a formal appeal of its Medicare reimbursement rates and
specialty training for its health care workers in pain management
techniques. The training is aimed at meeting the anticipated needs of
the Vineyard community as its population ages. By contrast, future
business planning for the Visiting Nurse Service effectively has been
put on hold during a period of administrative changes at the top at
Community Services, where a new executive director is set to take over
in late February.

Mrs. Wasserman said this week that the merger talks have been useful
and productive, but she admitted that Community Services simply may not
be ready to commit to the merger.

"I would say that everything is very cordial and we have
learned a great deal - there has been no defensiveness and we have
shared a lot of information and I think that has been terrific. I think
that probably it has been two steps forward and one step back, because I
took over [as president recently] and we haven't had this
executive leadership," she said, adding: "We are very much
in the process of talking, and I don't think we have changed our
mind that a single agency would be a very good idea, but how it would
get from the two agencies to one, we haven't really figured out
yet.

"I'd say we have learned a lot about the similarities in
the organization and come to appreciate the differences. We are really
coming to a place where we are going to be able to make a decision, but
I don't have a specific time frame. We need to bring Julia Burgess
[the new executive director who takes over Feb. 27] up to speed on all
of this."

Mr. Tonti said his agency has a number of issues that require
immediate attention, including recent changes in federal Medicare
reimbursements that will eliminate about $180,000 in operating revenues
if they are allowed to stand. Mr. Tonti writes about the Medicare
reimbursement problem in an op-ed piece which is published on the
Commentary Page in today's Gazette.

In addition, the nursing agency, which is housed at the
Martha's Vineyard Community Hospital, must move out in June to
make way for the start of the hospital building project.

"We have had a very tough year, financially," Mr. Tonti
said. He said staff members will not receive a pay raise this year
unless some extra money is found, and he praised them for their
dedication and professionalism.

"Home health care is different from hospital care. It is
really a calling and our people are extremely dedicated to their
work," he said.

Meanwhile, he said the merger would benefit both agencies, and also
the Vineyard community over the long term.

"I think it is something we should be doing - it helps
the agencies, and financially it makes some sense," Mr. Tonti
said, concluding: "There is a pony in there somewhere. I think
there is a model that would give an agency a more stable financial
footing going forward yet give it the autonomy. There is a way."