The previously announced sale of financially struggling Stafford Springs, Conn.-based Johnson Memorial Medical Center is moving forward, as state regulators have approved plans for Hartford, Conn.-based Saint Francis Care to acquire JMMC, according to a report from The Connecticut Mirror.
Here are seven things to know about the sale.
1. The transaction is valued at $30 million.
2. With the sale, JMMC will become part of Livonia, Mich.-based Trinity Health, which has been in the process of absorbing Saint Francis Care. Trinity Health is also in the process of absorbing another health system in the state — Waterbury, Conn.-based Saint Mary's Health System.
3. JMMC and Saint Francis Care already have an affiliation agreement, which both sides signed in July 2012. Once the sale is complete, JMMC will remain independently licensed with its own board of directors, according to the report.
4. The sale will end JMMC's bankruptcy proceedings, and Trinity Health-New England — its new parent company based at St. Francis Hospital and Medical Center in Hartford — will assume its outstanding debt, according to The Connecticut Mirror.
5. Under the deal, clinical services at the hospitals will remain the same, and St. Francis Care will invest in JMMC's facilities, technological capabilities — including EMR – and stability, as well as help JMMC attract and retain physicians, according to the report.
6. In a statement cited by The Connecticut Mirror, JMMC President and CEO Stuart Rosenberg said the alliance "preserves a critical community asset, allowing us to continue providing healthcare to the community, as well as serving as a significant contributor to the local economy."
7. The sale is expected to be finalized by the end of the year.
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