DUBLIN, Ohio-Laying groundwork for future expansion while helping members hold onto the past, Ohio HealthCare FCU is forming the HealthCare Credit Union System.
The system-simply an umbrella brand under which other healthcare CUs in this state are being invited-is still awaiting NCUA approval, said Jaime Crooks, marketing director at the $50-million Ohio HealthCare FCU. To step under the HealthCare Credit Union System umbrella, CUs must first merge with Ohio HealthCare. The merger with Akron's MedPro FCU, finalized Aug. 1, signaled the first Ohio healthcare CU to come on board.
"Ohio HealthCare FCU serves the entire health care industry in Ohio," explained Crooks of the CU's TIP charter to serve healthcare employees in the state. "There are at least nine other credit unions in Ohio that serve the health care community. We wanted to build this model and make the proposal to other health care credit unions in Ohio to come on board with us via merger."
Credit unions will keep their individual brand names, but add the tagline: "An Affiliate of the HealthCare Credit Union System."
For MedPro, members will still see the top half of their credit union's logo, the CU's name, and then the tagline. That will be the same arrangement for Ohio HealthCare FCU," explained Crooks.
Ohio HealthCare FCU believes letting acquired credit unions keep their names maintains strong membership ties and loyalty. "We want members of MedPro to feel like they are still part of the credit union they originally joined," said Crooks. "And they are. They are just getting expanded services."'
Economies of Scale
Crooks said the approach not only brings more financial services to health care employees across the state, it improves economies of scale for health care CUs and makes a merger more effective. "It allows us to step into those markets where health care credit unions already have a foundation, not reinvent the wheel, and reach out to members who likely have no clue who Ohio HealthCare FCU is. Why not partner with other health care credit unions already serving these areas, who know the people, and build upon that success."
No MedPro staff are being laid off. Bill Butler, CEO of Ohio HealthCare FCU, has been named president, while Becky Howell, former CEO of MedPro, is now CEO of the Northeast Ohio Market. Dave Cottone, former VP of Lending at Ohio HealthCare, is CEO of the Central Ohio Market. Three MedPro directors will join the current seven members of Ohio HealthCare's board.
Back-office functions are being combined to eliminate redundancies, and MedPro will convert to Ohio HealthCare's UltraData core system sometime in the first quarter of next year.
The only thing left to do, said Crooks, is wait for NCUA's approval on the umbrella name. "We feel good about it and right now we are dong searches to make sure no one can challenge the name. By the end of the year we expect all of this to be finalized."
