Elwyn is working to come up with solutions to financial losses stemming from the way states, particularly New Jersey, pay the 168-year-old nonprofit for its services, writes Harold Brubaker for The Philadelphia Inquirer.
The pandemic has also made it harder for Elwyn to renew a $45 million line of credit to sustain operations.
Elwyn, headquartered in Media, provides services, support and programs for people with autism and other developmental disabilities. It is a big local employer, providing jobs to 5,000 people.
“The pressure on Elwyn has materially increased as a result of COVID-19,” Charles S. McLister, Elwyn’s chief executive, said on a conference call with bond investors on May 18.
McLister was confident Elwyn would not run out of money, even though a new payment model now requires it to bill for separate services, then wait for the money , instead of getting paid up front.
Elwyn is modernizing and hiring new personnel, McLister said earlier this year, to match the current market.
It has also reduced its nearly $60 million in long-term debt and is selling off real estate as it consolidates operations.
Read more about Elwyn’s financial situation here.
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