Vista Grande Villa Announcement

On behalf of the Vista Grande Villa Board of Directors and myself, we are so very pleased to announce that Vista Grande Villa has approved an agreement with Kauhale Healthcare Management to manage the operations of our Community. Kauhale (ka’u-ha’-le), a name derived from a Hawaiian term meaning “village” is a Midwest-based management company whose partners bring deep experience in post-acute and senior housing for a combined 100+ years in over 20 states, including Michigan. Through its mission to develop, attract, and to retain high­ performing care teams, Kauhale endeavors to deliver market-leading resident engagement and an aspirational model of living with emphasis on health, wellness, and quality of life.

Plan to Achieve Financial Stability and Growth
PYM is an excellent organization and served the community well for several years. Vista, like many senior living providers has experienced financial challenges, only further exacerbated by the pandemic and an increasingly challenging operating environment. Following a comprehensive process to identify solutions for better positioning the Community (while also maintaining its commitment to its residents and staff), Vista approved a plan to partner with Kauhale and Lapis Advisors, a dedicated healthcare and senior living lender/investor that will provide critical financing for the Community. Proceeds from the financing will be used to restructure the Vista’s existing debt, bolster working capital reserves and provide for critical capital investment at the Community, as further described below.

Beneficial Impact to Residents and Staff
First, we want to assure you that all existing resident contracts and agreements with Vista will remain in place and shall not be impacted by the management change. Rest assured, Vista’s obligations and commitment to its residents will be honored; current and future residents will only benefit by the changes to come. Moreover, Vista and Kauhale expect to retain the current staff and leadership team, with no significant changes to key terms of employment. Paramount to its mission, it is Vista and Kauhale’s shared goal for Vista to continue to be an employer of choice.

Preservation of Non-Profit Status and Independent Board
In addition, Vista Grande Villa shall continue its commitment of delivering outstanding quality of care and shall preserve its mission as a not-for-profit through its autonomous board of directors. With new or existing resident directors invited to participate in go-forward efforts, over time, Vista’s board shall be further augmented by new, independent members to oversee and champion plans to further strengthen the Community.

Plans to Reinvest in Capital and Reposition Campus
Lastly, we are excited to tell you that our transition also includes plans to aggressively reinvest capital dollars into the Community to elevate the environment, care, and services currently offered. Vista and Kauhale are in process of meeting with architects and other professionals for developing plans to reposition the Community in the most impactful manner. Such projects are intended to, among other things, improve safety and reliability of existing infrastructure, better the resident experience, be market-ready for new or transitioning residents, and overall support the long-term health of the Community.

Next Steps
In the coming weeks, members of the Kauhale team including our directors will be at the Community to meet with members of the Vista team, as well as residents and family members. During these visits, Vista leadership, together with the Kauhale team will address specific questions or concerns and circulate answers to frequently asked questions. We have planned for Town Hall meetings and a fun and interactive “Cocktails and Conversations” event for the first week of April. Stay tuned!

We look forward to meeting with you as we begin a new and exciting innovative chapter at Vista Grande Villa. Please join us in welcoming the Kauhale family to our community here in Jackson.

Sincerely,

Chelsea Eisele, Executive Director

Joseph Dunigan, President/Chair