Springs, Conn. January 14, 2015) –Johnson Memorial Medical Center (“JMMC”),
the parent organization of Johnson Memorial Hospital, Evergreen Health Care
Center, Home & Community Health Services, and Johnson Health Care, announced today the approval of an Asset Purchase Agreement
with Saint Francis Care (the parent
company of Saint Francis Hospital and Medical Center, Mount Sinai
Rehabilitation Hospital and its other providers).
discussions among JMMC’s Board of Directors, lenders, governmental agencies and
multiple advisors, a pre-planned and voluntary reorganization under a Chapter
11 bankruptcy filing was collectively determined as the most efficient and
expedient process to proceed with the business transaction under the terms
negotiated, which includes a debt restructuring.
will clear the path for JMMC’s continued financial strength and stability. The terms of the transaction will allow JMMC
to emerge from this process with less debt and the deepened relationship with
Saint Francis Care will help to
achieve the goal of becoming a stronger, more financially sound hospital,
well-positioned for the future.
our working affiliation, JMMC and Saint Francis Care have been on the path of creating a long-term partnership,”
said Stuart E. Rosenberg, President and Chief Executive Officer at JMMC. “One
of the achieved goals from our partnership with Saint Francis has been the
ability to continue our mission as we have for the last 102 years, providing
quality healthcare in the community. Johnson Memorial Medical Center will be a key
member of an integrated system of care.”
and Saint Francis Care signed an Affiliation
Agreement in July 2012, resulting in a mutually beneficial relationship that
has provided the community with a sustainable, high-quality healthcare
resource. As a result, JMMC has recently
experienced improved operations by all measures of financial performance.
current affiliation agreement provides the framework necessary to ensure the
continued delivery of quality care to the local community and sustain a major
economic resource for the region,” said Christopher Dadlez, President and Chief
Executive Officer, Saint Francis Care.
“Recently we have watched JMMC stabilize and strengthen its operations. Both
parties are enthusiastic about the next steps ahead.”
terms of the Asset Purchase Agreement, JMMC would become a wholly-owned subsidiary
of Saint Francis Care as part of a clinically
integrated healthcare delivery system.
finalized agreement will be contingent upon regulatory approvals, including by the
Office of Health Care Access, and Office of the Attorney General of the State
of Connecticut. A Certificate of Need
will be filed, as required, to initiate the review process.
Saint Francis Care
Francis Care is an integrated healthcare delivery system established by
Saint Francis Hospital and Medical Center, an anchor institution in north
central Connecticut since 1897. Licensed for 617 beds and 65 bassinets,
it is a major teaching hospital and the largest Catholic hospital in New
England. Other major entities of Saint Francis Care include The
Mount Sinai Rehabilitation Hospital, the Connecticut Joint Replacement
Institute, the Hoffman Heart and Vascular Institute of Connecticut, the Saint
Francis/Mount Sinai Regional Cancer Center, the Joyce D. and Andrew J. Mandell
Center for Comprehensive Multiple Sclerosis Care and Neuroscience Research, and
Saint Francis HealthCare Partners. Johnson Memorial Medical
Center, parent organization of Johnson Memorial Hospital, Evergreen Health Care
Center, and Home and Community Health Services is also a Saint Francis Care Partner.
Saint Francis Care’s services are supported by a network of seven major
Access Centers and eight additional medical office centers sited throughout the
region. For more information, visit www.stfranciscare.com.
Memorial Medical Center (JMMC) is the non-profit parent company of Johnson
Memorial Hospital; Evergreen Health Care Center, which offers long-term care,
short –term rehabilitation and recovery, and care for those with Alzheimer’s
disease and related forms of dementia; and Home and Community Health Services,
a home health care and hospice agency. JMMC provides a continuum of health
services to living and working in North Central Connecticut and Western
Massachusetts. For more information visit www.jmmc.com.