Important Updates

Dear Frederick Living Family,

The senior leadership team and the Board of Directors is pleased to share this midpoint update, as promised, in our series of communications we’re calling, “Building Our Future Together.”

Since we announced this initiative in December, our two appointed Task Forces have been hard at work exploring the best strategies to ensure the long-term future sustainability of our community.

The first task force, now called VIVA, is focused on how to reposition the campus for growth.

The purpose of the campus development task force, VIVA, is to pursue a conceptual plan that results in a financially viable, market-appropriate, and trends-based solution for the future.

As a recap, this group is creating a plan for operations, services, and building expansions, ensuring all these elements are right-sized for our community. They are seeking solutions that anticipate industry trends and will strengthen our financial base.

Key considerations for VIVA include:

• Determining what kinds of expansions and renovations would fit well on our campus and be most attractive to prospective residents
• Exploring possibilities for building new resident housing such as cottages and an apartment building
• Researching the cost, timing, and market demand of potential projects
• Determining how to provide the best options and flexibility of service within our care areasThe second task force, now called Ally, is focused on identifying potential partnerships with other senior living providers who align with our mission and values here at Frederick Living.The purpose of the partnership task force, Ally, is to determine how a partner would impact the future business model and provide sustainability for the organization in the long term.

  As a recap, this second group is focused on researching and vetting viable opportunities that would bring us strategic, operational, and financial support to maintain our future sustainability. A successful partnership would streamline governance, support our campus growth plan for the future, and provide us with additional resources for our current and prospective residents.

  We are being very intentional about the quality and complementary nature of the organizations being considered. The core values of Frederick Living are non-negotiable.

Criteria for any potential partner on Ally’s list include:

• Faith-based alignment
• Non-profit status
• Demonstrated experience with implementing a strategic growth plan similar to Frederick Living’s goals
• Systems that would move Frederick Living forward
• Bench strength and capacity, experience with all levels of service
• Culture match in terms of vitality, engagement, and support of residents in-home
• Culture match relating to continuous improvement and innovationIn our deliberations we’re exploring all options, including the possibility that the two task forces may eventually merge their efforts. For instance, we may decide that the growth plan being mapped out by the VIVA campus development task force should be incorporated into Ally’s strategy for a potential partnership agreement. We trust you can understand that specifics about the task force discussions must remain confidential at this point.Here’s an overview of what we’ve done so far and our next steps. Despite the winter’s flooding crisis, we continue to be on track with our timeline for this process.

  Timeline:

• • Task force meetings began – November 2022
  • Video & first update letter shared – December 2022
  • Research/discernment meetings: 6 months
  • Second video & update letter – end of March 2023
  • Final task force reports and recommendations to the Board – May 22 board meeting
  • Report and update to the community – early JuneWe want each of you to rest assured that we're putting the interests of our residents and team members first in every decision. Continuing to build an inclusive and engaging workplace for our team, and ensuring our community's sustainability, are fundamental to our vision for the future.

We’ve created a short video describing our goals and what our process will be in the coming months.