Elgin mental health, substance abuse agencies to merge
Two Elgin-based nonprofits, Ecker Center for Mental Health and Renz Addiction Counseling Center, plan to merge and create a new, larger behavioral health agency that will provide services to western Cook County and central and northern Kane County.
The combined agency will have a budget of nearly $8 million - Ecker Center's budget is $5.8 million and Renz's is $1.9 million - with about 150 staff members, officials announced Tuesday. No staff reductions are planned, they said.
Deb Howe, marketing and development director for Renz, said the merger will result in cost savings and make it easier to treat people with dual mental health and substance abuse diagnoses.
A new name for the combined agencies is not planned at this time, the release said. The agencies will keep their locations in Elgin, St. Charles and Streamwood, their names, and separate tax identification and license numbers.
"The Renz - Ecker merger will enhance service provision at both agencies," Karen Beyer, CEO of Ecker Center, said in a news release.
Jerry Skogmo, executive director for Renz, said the agencies will be stronger together.
"We are deeply committed to providing the best behavioral health care to the community we serve and we will now have the ability to provide integrated care for individuals with a dual diagnosis of substance use disorder and a mental health disorder."
The savings will come from combining human resources and accounting departments, having a joint information technology contractor, making purchases on a larger scale, combining some administrative functions, and having joint risk management/insurance policies, Howe said.
"Savings will be slow initially but are expected to be in the tens of thousands (of dollars) within two years," she said.
The agencies are projecting merger-related expenses - such as combining medical records systems, IT enhancement and staff training - at $160,000, she said. They have received $105,000 in grant money from Hanover Township's mental health board, the Seigle Family Foundation and Grand Victoria Foundation, and another grant request is pending, she said.
The Chicago-based law firms Winston & Strawn LLP and Kirkland and Ellis LLP provided pro bono services, officials said.