Diakon and Lutheran Senior Services Enter into Senior Living Agreement

Topton, PA (Wednesday March 27, 2024)

Diakon, a Lutheran organization that offers a continuum of senior lifestyle and healthcare services as well as a wide range of services for children, families, and adult individuals of all ages,  announced it is entering into an agreement to combine its senior living operations with Lutheran Senior Services (LSS), a mission-driven, nonprofit network that specializes in housing, care and supportive services for older adults.

“This was a strategic decision made by both of our organizations,” said Scott Habecker, Diakon President and Chief Executive Officer. “It helps create a larger senior living business with an even greater ability to serve residents and provide workforce opportunities in the future while also allowing Diakon to focus our resources on the growth of our diversified portfolio of affordable senior housing and children and family services.”

“Dynamics in senior living are changing rapidly and provider organizations must adapt and evolve to ensure the best for those we serve,” said Adam Marles, LSS President and Chief Executive Officer. “This step does that while also creating additional scale and will enable Lutheran Senior Services to compete for talent, add specialty positions, create career opportunities for our team, increase our purchasing/negotiating power– and so much more.”

Under the agreement, Diakon’s senior living operations and four life plan communities will become part of LSS. This agreement will result in LSS becoming the 12th largest nonprofit senior living organization in the country with annual revenues of nearly $350 million and offering 12 life plan, one assisted living, and nine senior affordable housing communities and home-based services in three states (Missouri, Illinois and Pennsylvania). 

This agreement joins the 2,800 LSS team members and 4,000 residents with Diakon Senior Living’s nearly 700 team members and 1,300 residents. Combined, LSS will serve nearly 15,000 60+ older adults through its independent living, assisted living/personal care, skilled nursing, affordable housing, home and community-based care, and other senior care services.

“We’re excited to welcome the Diakon Senior Living family into LSS and to expand our geographic footprint into Pennsylvania,” adds Marles. “We were fortunate to have found a like-minded partner in Diakon. They are a strong operator in senior living with scale in their region, a shared emphasis on quality care, a similar people-centric culture and a strong BBB+ financial rating.”

The transaction is pending regulatory approvals, with an anticipated closing sometime this summer.

While more details will follow regarding future plans, Diakon expects to continue investing heavily in its child and family services and expanding its existing portfolio of affordable housing for seniors. Diakon will also continue to offer services to seniors through various Diakon Community Services programs such as senior centers, health and community wellness activities, Meals on Wheels and more.