Shelby Residential and Vocational Services (SRVS)

SRVS (pronounced "serves") is the largest provider of services for individuals with disabilities in West Tennessee, offering comprehensive care across seven counties. Established in 1962, SRVS serves more than 2,400 individuals through programs like Community Living, SRVS Kids, Community Employment Services, Family Support, and Elderly and Adult Disability Services. SRVS is also the only organization in Shelby County providing care from birth through end of life.

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Year Founded

1962

Inperium Partner Since

2022

Location

3971 Knight Arnold Road
Memphis, TN 38118
United States

Contact

901-869-7787

information@srvs.org

Why an Inperium Partnership

Significant Financial Challenges

By 2022, SRVS had suffered two consecutive years of financial losses, amounting to $2 million annually. They struggled with low reimbursement rates, poor occupancy and productivity, ineffective fundraising, and excessive spending. The organization had a fully drawn line of credit and was considering closing several programs, including employment and daycare services.

Deferred Maintenance

SRVS faced large amounts of deferred maintenance, putting their license renewals at risk. Without access to capital or a clear plan, these issues jeopardized the organization’s ability to serve its community.

Limited Access to Relief Funds

Despite significant financial strain, SRVS failed to apply for or receive COVID-19 relief funds, compounding their cash flow issues and leading to significant layoffs.

How Inperium Helped

Financial Stability

Inperium immediately provided SRVS with access to a new line of credit to ensure business continuity during its transition to affiliation. They also hired financial and program consultants to address SRVS’s challenges and identify financially unsustainable programs.

Rate Increases and Funding

Inperium’s support led to rate increases for programs that had not received adjustments in years. The restatement of assets to fair market value helped strengthen SRVS’s balance sheet, providing financial relief.

Program Viability

A dedicated team was assigned to assess the viability of SRVS’s programs, focusing on improving financial and operational efficiency.

Process and steps

Financial and Operational Review

Inperium hired consultants to evaluate SRVS’s financial situation and operational challenges, developing a strategy to stabilize the organization.

New Line of Credit

Inperium ensured SRVS’s business continuity by establishing a line of credit, which allowed them to address immediate cash flow issues.

Program Evaluation

Inperium worked with SRVS to assess which programs were financially viable and which required restructuring or additional support.

Rate Adjustments and Cost Reduction

Through Inperium’s guidance, SRVS negotiated necessary rate increases and reduced its management and general service expenses by 2.0% and 7.9% in fiscal years 2023 and 2024, respectively.

Results

As a partner of Inperium, SRVS experienced significant improvements in financial stability and operational efficiency. The organization saw a year-over-year increase in operating revenue of $33.5 million in 2023 and $31.3 million in 2024. SRVS’s net assets increased by $16.9 million in both fiscal years. Inperium’s intervention also decreased SRVS’s management and general services costs, freeing up resources to reinvest in critical programs.

By joining the Inperium network, SRVS has expanded its capacity to serve individuals with disabilities in West Tennessee and become Inperium’s first partner in the state, broadening the organization’s reach and impact.