UMMS Completes Agreement to Purchase the Assets of St. Joseph Medical Center from CHI
For immediate release: November 30, 2012
New University of Maryland St. Joseph Medical Center to begin operations on Saturday December 1st
ENGLEWOOD, Colo. and BALTIMORE, Md. – Today, the University of Maryland Medical System (UMMS) and Catholic Health Initiatives (CHI) announced the signing of an asset purchase agreement in connection with St. Joseph Medical Center (SJMC) in Towson, Maryland. SJMC's assets will be acquired by the University of Maryland St. Joseph Medical Center, effective 12:01 am, December 1, 2012. The hospital will be a subsidiary of UMMS.
"We are looking forward to what the University of Maryland St. Joseph Medical Center can bring to the community and to partnering with the physicians and staff," says Robert A. Chrencik, president and chief executive officer of UMMS.
SJMC's current employees will become employees of either the new organization or UMMS.
"As health care reform continues to evolve, the SJMC board and CHI recognized their obligation to find innovative approaches to meet the changing needs of the communities they serve while remaining true to SJMC's Catholic identity," said Beth O'Brien, CHI senior vice president and group executive officer. "The transfer of SJMC's assets to UMMS will position University of Maryland St. Joseph Medical Center to thrive in the future and serve the health needs of the people of Maryland."
Under the asset purchase agreement, UMMS will not assume any SJMC liabilities arising from events occurring prior to December 1, 2012. These liabilities will remain with SJMC and CHI.
St. Joseph Medical Center is a 263-bed nonprofit, regional medical center located in Towson, Md. St. Joseph was founded in 1864 by the Sisters of St. Francis. UMMS has reached an agreement with the Archdiocese of Baltimore for the University of Maryland St. Joseph Medical Center to continue SJMC's religious mission and Catholic traditions under the new ownership.
On March 23, CHI accepted the recommendation of the SJMC board of directors to sell the assets of SJMC to UMMS. The decision came after an extensive RFP process and year-long evaluation of strategic alternatives and discussions with Catholic and other not-for-profit health care organizations that expressed interest in SJMC. Negotiations leading to this asset purchase agreement have been ongoing since that time.
About University of Maryland Medical System
The University of Maryland Medical System is a 12-hospital system with academic, community and specialty service missions reaching every part of the state and beyond. UMMS is a national and regional referral center for trauma, cancer care, neurocare, cardiac care, women's and children's health and physical rehabilitation. It also has one of the nation's largest kidney transplant programs, as well as scores of other programs that improve the physical and mental health of thousands of people daily. UMMS has 18,000 employees, approximately 2,300 licensed beds, over 120,000 annual patient admissions and gross patient revenues of $3 billion. Additionally, the Medical System generates nearly $3.5 billion in economic activity in Maryland. For more information, visit www.umms.org.
About Catholic Health Initiatives
Catholic Health Initiatives is a national nonprofit health system with headquarters in Englewood, Colo. The faith-based system operates in 19 states and includes 81 hospitals; 40 long-term care, assisted- and residential-living facilities; two community health-services organizations; two accredited nursing colleges; and home health agencies. In fiscal year 2012, CHI provided more than $715 million in charity care and community benefit, including services for the poor, free clinics, education and research. With total annual revenues of more than $10.7 billion and approximately 86,000 employees, CHI ranks as the nation's second-largest faith-based health system.