Johnson Memorial Medical Center Announces Approval of Asset Purchase Agreement with Saint Francis Care

(Hartford/Stafford 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).   

After 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. 

This 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.  

“Throughout 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.”  

JMMC 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.  

“Our 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.” 

Under 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. 

Any 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. 

About Saint Francis Care 

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, 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. 

About JMMC 

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 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.