Jason started his presentation by noting that he's been with Lutheran for 24 years, and stepped into the CEO role during a significant period of transition. That transition involved two real major changes: one involved the retirement of a long-standing CEO after 33 years retire, and also the closure of its nursing home - which is what Lutheran had been primarily known for for decades in the community.

Jason noted that closure was due to healthcare changing dramatically in the region - from workforce challenges to shifting care models and to financial pressures. He said because of that, Lutheran, as an organization, had to step back and ask a very important question: How do we build an organization that is sustainable, mission-driven, and truly aligned with what the community needs today and not what it needed years ago?

He said one of the biggest shifts made was stepping away from the services Lutheran has historically provided - most notably, and as of late, the closure of nursing home. He said at the time of the closure, Chautauqua County had significantly more nursing home beds than residents to fill those beds. There were approximately 924 beds with 700 residents residing in those beds. So if you do the math, it's about 75% occupancy. Jason said that imbalance made it harder to staff, harder to sustain financial stability, and harder to consistently deliver a quality of care that people deserve. He noted this challenge was also experienced by several other facilities, who've also made the decision to close. As a result, over 40% of the beds in this county will have been reduced at the closure of the most recent facility closure. Also, the number of residents in nursing beds is now just above 500 for Chautauqua County, illustrating that the demand for that service has greatly decreased.

Even with the reduction, Jason noted that the Jamestown area still has more assisted living beds per capita than any county in New York State. When this happens, it creates a highly competitive environment and reinforces the importance of being both efficient and differentiated.

At the same time, providers continue to face broader challenges: Medicaid reimbursement often runs 40% below operating costs, there's been increases in regulatory requirements, and also unfunded mandates handed down from the state including minimum staffing rules with financial penalties. Also, residents are coming in with more complex needs than ever before. He also added that across the nonprofit healthcare and human sector, there's a growing belief that bigger organizations are better and more stable.

Jason said that like many organizations, Lutheran has explored partnerships and potential mergers larger healthcare systems, but ultimately, Lutheran found a way to remain locally governed while still building the strength and sustainability it needed. He noted that his board of directors are local and remain thoughtful, forward-thinking, and willing to make difficult decisions that ensure this organization will be here well and into the future, staying focused on what will matter long-term for the people it serves. This will happen by continuing its focus on maintaining both assisted and independent living facilities, while also continuing its youth and family support services.

Jason also provided the history Lutheran, noting it has been in Jamestown since 1886. It began as a home for orphaned children, primarily serving Swedish immigrant families. About 40 years later, as community needs changed, the organization expanded into senior care and that pattern has continued for nearly 140 years. At its Edgewood Communities, residents maintain independence in one of Lutheran's 142 apartments or duplex homes. At Hultquist Place, residents have private rooms with their own bathroom, including shower in any one of its 96 assisted living units, which provides dignity, comfort, and independence. But what Lutheran really provides is more than housing, it's also a lifestyle. This includes robust activities programming, wellness opportunities, dining options, entertainment, and spaces that foster connection and engagement.

For family services, Lutheran's GA Family Services Division provides full continuum of support, across western New York. This includes foster care services, adoption, host adoption, kinship, family support, care coordination for youth with behavioral mental health conditions, supervised visitation, and programs focused on prevention and skill building for at-risk youth. Today, Lutheran is the largest foster care provider in western New York, supporting over 80 youth and foster placements and more than 150 youth across all programs.

With the recent transition and refocus in programming, Lutheran is now in a strong financial position. It's eliminated nearly all of its debt as an organization, and so today it primarily operate as a debt-free organization. It's also reinvested in the past year over $2 million in capital improvements to its infrastructure, buildings, and equipment. So rather than stepping back, Lutheran is actively moving forward.

Following his presentation, Jason took questions from the audience. After the Q&A, the meeting was adjourned.