New Service Offerings Propel Seven Hills To Double-Digit Growth
David Jordan, president and CEO of Seven Hills Foundation: “We're always going to expand but I suspect that over the (next) two-year cycle, it's going to be a slower expansion.”
Seven Hills Foundation has been busy. In roughly three years, the Worcester-based nonprofit has expanded its reach beyond Massachusetts, acquiring a Rhode Island organization, and stretched into seven countries. It's also continued to step up its human services offerings in the Bay State as well, adding a new brand of service last summer and two new locations, with a third on the way.
Growth like this has helped Seven Hills increase its revenue 16 percent from $135 million in 2009 to $157 million in 2011. President and CEO David Jordan said a jump in contracts and expansion into Medicaid-related services helped spur the increase.
But the biggest boost Seven Hills received was the $20-million acquisition of Homestead Group of Woonsocket, R.I., three years ago, Jordan said.
"It broadened our scope of service," he said, adding that the nonprofit provided residential treatment, behavioral health care, daycare and early intervention programs for children with disabilities.
The acquisition also came as nonprofits began feeling the pressure of having to do more with less. Jordan said Homestead was "just barely able to survive" with $20 million in revenue.
Being absorbed by Seven Hills allowed Homestead to continue to run, servicing about 1,500 clients.
Locally, Seven Hills expanded in August, opening new locations in Milford and Groton.
The Groton facility is a residential program for people with intense medical needs that Jordan said will help about five individuals at a time.
Meanwhile, the Milford site is home to Seven Hills' new Aspire! brand, a day treatment program that gives people with disabilities graduating from high school the opportunity to learn jobs skills, and provides health care services.
"Aspire! attempts to work with (the) private sector in response to their business needs," Jordan said, comparing it to a vocational technical school. An example of the needs it could meet is handling microfiche or other document storage for firms. Barry Feingold, president and CEO of the Milford Area Chamber of Commerce, said the chamber was approached about clients of Aspire! to handle the shredding of documents.
"Our mission really is to improve the quality of life throughout the Milford area and when you have somebody like Seven Hills Foundation come in, that goes hand-in-hand with our objective," Feingold said. "What they can do is tremendous. Each individual has certain skills (they can use) and (Seven Hills helps) them feel good about themselves again, feel comfortable again."
Seven Hills, which has 10 nonprofits beneath it, is quickly expanding Aspire!, recently buying a 42,000-square-foot building in Worcester for $1.9 million that Jordan said will serve about 100 clients.
"We were looking for facilities that were big enough to accommodate the needs of families in the community," Jordan said, adding that it was perfect for Seven Hills' needs, partially because of its close access to a bus route.
Renovations of the former Heinrich Ceramic Decal building will begin later this year, and it's expected to open in May or June, in time to welcome high school graduates who can benefit from the program.
Jordan said Seven Hills is in talks with Quinsigamond Community College and the Massachusetts College of Pharmacy and Health Sciences as well as local businesses for assistance with the program.
For all its growth, Seven Hills has had to be prudent in its spending in recent years, like other businesses and nonprofits, reducing overhead costs to 6 percent, Jordan said. He said all its programs are in the process of adjusting to decreases in funding and adjustments to Medicaid reimbursements.
"We're all going through a period of time where things are getting a lot tighter," Jordan said.
To that end, the organization recently closed two of its mental health facilities, which had had operated at a loss for two years, in Chelmsford and Fitchburg, Jordan said.
Seven Hills is continuing to evaluate the areas where it's most needed. Jordan expects the residential facility portion of the group's offering to grow the most, as many people with disabilities are being moved out of nursing homes or institutions, due to various federal lawsuits.
Although he sees clear areas for growth, Jordan expects the coming years to be a little quieter for Seven Hills.
"The future is a period of strategic pause," he said. "We're always going to expand but I suspect that over the (next) two-year cycle, it's going to be a slower expansion. What we have to do in today's world is look at efficiencies and how do we manage growing needs with shrinking dollars."
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