The agreement between Hartford (Conn.) HealthCare and Norwich, Conn.-based Backus Corp., parent company of Backus Healthcare System, will give Hartford HealthCare control over Backus Healthcare hospitals, including the power to veto capital projects and hire or remove administrators, according to a Norwich Bulletin report.
The two organizations signed a memorandum of understanding for a potential affiliation in May. If the affiliation is realized it would include the following:
• Hartford HealthCare's governing board will have reserve powers — the ability to hire/fire Backus' CEO and the ability to veto or approve capital projects after consultations with Backus' board of directors.
• Backus Corp. would have its assets and liabilities appear on Hartford HealthCare's financial statement.
• Hartford HealthCare would assume liability for Backus Corp.'s debt, including long-term debt of $62 million as of September 2011.
Hartford HealthCare, Backus Corporation Sign Affiliation Letter of Intent
The two organizations signed a memorandum of understanding for a potential affiliation in May. If the affiliation is realized it would include the following:
• Hartford HealthCare's governing board will have reserve powers — the ability to hire/fire Backus' CEO and the ability to veto or approve capital projects after consultations with Backus' board of directors.
• Backus Corp. would have its assets and liabilities appear on Hartford HealthCare's financial statement.
• Hartford HealthCare would assume liability for Backus Corp.'s debt, including long-term debt of $62 million as of September 2011.
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