RHD cut its CFO and chief information officer, turned those departments over to Inperium
Inperium is taking over key administrative functions at Resources for Human Development after securing control of the nonprofit's board in May.
Resources for Human Development eliminated the positions of CFO and chief information officer and turned those departments over to its prospective acquirer Inperium, the CEO of the financially distressed Philadelphia health and human services nonprofit said Friday in an internal email.
“Alongside our decision to outsource specific administrative functions, we are embarking on a new era at RHD,” CEO Brian Matthew Rhodes said in the email obtained by The Inquirer.
RHD’s CFO Deanna Cerwin departed on Aug. 9; its chief information officer, Mike Boeglin, left Aug. 7, the email said. Rhodes did not respond last week to requests for details about how many other jobs were being eliminated at the large Philadelphia health and human services nonprofit.
Rhodes had warned in a July 31 blog post that a third round of layoffs was likely in the next couple of weeks.
RHD, which announced a preliminary agreement in May to be acquired by Inperium, already had two rounds of layoffs this year, but was still on the verge of bankruptcy when it agreed to the deal with Inperium, which provides behavioral health, intellectual disability, and other services.
The fast-growing Reading nonprofit has unusual terms in its RHD agreement, including the right to appoint five of nine RHD board members in exchange for a line of credit from Inperium. That gave Inperium control of the 54-year old RHD without any regulatory oversight.
RHD, which gets most of its revenue from Medicaid, has operations in 13 states including three clinics in low-income Philadelphia neighborhoods. RHD was expected to have a $10 million operating loss on $325 million in revenue in the year that ended June 30, according to Jay Deppeler, a former Inperium executive who now chairs the RHD board.