Saint Francis, Johnson Memorial Announce Affiliation

(Stafford Springs/Hartford, Conn. January 23, 2012) – Johnson Memorial Medical Center (JMMC), the parent organization of Johnson Memorial Hospital, Evergreen Health Care Center and Home & Community Health Services; and Saint Francis Care, Inc., the parent organization of Saint Francis Hospital and Medical Center, announced today their intention to enter into an affiliation agreement designed to maintain Johnson Memorial as an independent source of high-quality healthcare and expand its clinical services in North Central Connecticut.

Under terms of the agreement, JMMC will become a Saint Francis Care Partner, but both JMMC and Saint Francis will continue to be separately licensed institutions, each with separate Boards of Directors. Saint Francis Care will be invited to participate in JMMC's Board and has committed to provide capital to support daily operations at JMMC for up to five years. There would also be a clinical integration of the two hospitals' Medical Staffs and a review of JMMC's opportunities for business development, growth and process improvement.

By accessing Saint Francis Care's resources - including various clinical services such as oncology, behavioral health, pharmacy, and laboratory services - JMMC will enhance its continuum of care and realize substantial operational efficiencies. JMMC will also have immediate access to administrative and strategic support from Saint Francis.

"This affiliation agreement will help to secure JMMC's market position in the future, and provide our patients with expanded access through services provided by Saint Francis Care," said David Morgan, JMMC's President and Chief Executive Officer. "With our independence assured, and access to new resources, we can now move forward to build and expand the services our community deserves."

"We are excited about this affiliation. It will ensure continued inpatient hospital services in North Central Connecticut so that the right care, in the right place, for the right cost will remain in place for local residents. This affiliation will help to secure JMMC's market position in the future and we are proud to be a part of this process," said Christopher M. Dadlez, President and Chief Executive Officer of Saint Francis.

Next steps include drafting final clinical affiliation and business process outsourcing agreements to provide guidelines to promote improved outcomes and maximize efficiencies. These agreements are expected to take up to 60 days for completion.

The affiliation agreement is also subject to regulatory approval before it can become effective. Johnson 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 & Community Health Services, a home health care and hospice agency. JMMC provides a continuum of health care services to those living and working in north central Connecticut and western Massachusetts. For more information, visit www.jmmc.com.

Saint 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, and the Joyce D. and Andrew J. Mandell Center for Comprehensive Multiple Sclerosis Care. Its services are supported by a network of five major Access Centers and eight additional medical office centers sited throughout the region. For more information, visit www.stfranciscare.com.