Fort Washington Medical Center Board of Trustees and University of Maryland Medical System Sign Hospital Management Services Agreement

For immediate release: September 05, 2013

Contact:

Mary Lynn Carver – UMMS

mlcarver@umm.edu | 410-328-8919

Judy Mitchell – Nexus Health Inc.

jmitchell@nexushealth.org | 301-686-9017

BALTIMORE –  The Nexus Health Board of Trustees, parent company of Fort Washington Medical Center (FWMC) has signed a management agreement with the University of Maryland Medical System (UMMS) for the management, operations and business development of the 37-bed hospital. The agreement’s effective date was September 1, 2013.  Fort Washington Medical Center is located in southern Prince George’s County Maryland just outside of Washington, D.C.

The agreement includes the option to renew the management contract at the end of the nine-month term. It also allows provisions for UMMS to assume all assets of Fort Washington Medical Center (FWMC) and operate it as a wholly-owned affiliate of UMMS, subject to the approval of both the UMMS and Nexus Health Boards.

“Our Board of Trustees determined that an alliance with the University of Maryland Medical System would help Fort Washington Medical Center achieve its vision to be recognized as a superior, innovative health care system,” said Kimberly Robertson Pannell, chair of the Nexus Health Board of Trustees. “In addition, it will offer UMMS another opportunity to broaden its presence in the growing southern Maryland region,” she added.

Under the agreement, both the current FWMC President & Chief Executive Officer Verna S. Meacham and Chief Financial Officer Joseph B. Tucker will become employees of UMMS and will continue their leadership positions at FWMC.

“We are looking forward to working with the team at Fort Washington Medical Center and determining the best strategic fit for our two organizations long-term,” stated Robert Chrencik, President and Chief Executive Officer of UMMS.

“In an era of uncertainty and challenging times in the health care industry, it makes sense to pursue a partnership rather than to stand alone,” said Nexus Health President & Chief Executive Officer Verna S. Meacham. “This agreement provides an opportunity to strengthen our organization, enhance our operational performance, and utilize new technology and additional resources,” said Meacham. “It also offers increased purchasing power and economies of scale, facilitates physician recruitment, and will add clinical programs that meet the health care needs of our communities,” Meacham continued.

About University of Maryland Medical System

The University of Maryland Medical System currently includes 12 hospitals across Maryland, the freestanding University of Maryland Shore Emergency Center at Queenstown, and the University of Maryland Shore Nursing & Rehabilitation Center in Chestertown.  UMMS also operates Mt. Washington Pediatric Hospital as a joint venture with Johns Hopkins, and has a minority ownership position in Upper Chesapeake Health which owns Upper Chesapeake Medical Center and Harford Memorial Hospital. For more information go to www.umms.org.

About Nexus Health

Nexus Health, Inc. is an independently owned, not- for-profit company that specializes in acute and long-term care services in Maryland and the District of Columbia. Nexus Health owns Fort Washington Medical Center located in Fort Washington, Maryland, www.fortwashingtonmc.org; and the Carolyn Boone Lewis Health Care Center (CBL), a 183-bed nursing facility located in the Washington, D.C. Nexus Health employs more than 600 employees.