Terros Health and Lifewell will enter into a consolidation agreement to provide comprehensive, whole-person care and critical wraparound services to more people in the community.
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Both entities offer a variety of outpatient and residential treatment services today. However, the consolidation will allow for an expansion of services. For Terros Health patients, that will mean greater access to housing and vocational rehabilitation services, while Lifewell patients can tap into additional specialty services, such as HIV prevention and treatment, child and adolescent services, and specialized care for those in the justice system.
Under the new agreement, the two organizations will operate under the Terros Health banner and Lifewell’s clinical services and five Valley outpatient clinics will become part of Terros Health’s community health center scope of work. Dr. Karen Hoffman Tepper, Terros Health’s president and CEO, will lead the new organization, which collectively will serve more than 50,000 patients per year at 13 clinics, generate approximately $150 million in annual revenues and employ 1,300 staff members. Lifewell CEO Doris Hotz will join Terros Health’s executive leadership team.
“Lifewell and Terros Health have a long history of collaboration, as well as similar missions and values,” Tepper said. “As we explored how to best serve our patients and communities, we discovered our ability to provide greater access to a wider range of services as a combined entity.”
Although both organizations have strong balance sheets, Tepper said the consolidation will create even more financial viability while addressing significant staffing shortages plaguing the industry.
There are no plans to close clinics or reduce the combined workforce. Some of the organizations’ clinics are located in the same geographic areas, but Tepper said the diversity of treatment modalities is sufficient to maintain all the facilities. The organization plans to add staff as it continues to grow, particularly as it endeavors to engage more patients outside of Maricopa County in its expanded services.
“Long term, we see the potential for consolidating technology and collocating lines of business to streamline the referral process and give patients access to more services from a single location,” Tepper said. “As important, we see our integration as a way to create specialization in our workforce so we can work at an even higher level.”
The consolidation will take place on Oct 1. Rebranding of the Lifewell sites will be taking place throughout 2024 and 2025.
