St. Joseph Medical Center Board Recommends Transfer to University Maryland Medical System
CHI has accepted the recommendation of the board of directors of St. Joseph Medical Center, Towson, MD, to the University of Maryland Medical System. The decision comes after a year-long evaluation of strategic alternatives and discussions in recent months with Catholic and other nonprofit health care organizations that expressed interest in St. Joseph.
The board recognized that as health care reform continues to evolve, it will be critical for health providers to be part of a regional network of coordinated health care organizations including hospitals, physicians, payers and other related health entities in geographically proximate areas.
The parties have agreed to enter into exclusive negotiations with the intent of signing a non-binding Letter of Intent to transfer ownership of St. Joseph Medical Center to The University of Maryland Medical System. Terms of the agreement will be negotiated and followed by a Definitive Agreement. The transfer will need to be approved by CHI, federal, state and Church authorities prior to completion of the transaction.
The University of Maryland Medical System has committed to honor St. Joseph Medical Center’s Catholic identity and its religious heritage.
The University of Maryland Medical System (UMMS) is a private, nonprofit network of 12 academic, community and specialty hospitals throughout Maryland. As the third-largest private employer in the Central Maryland Region, UMMS generates nearly $3.5 billion in economic activity and has almost $3 billion of annual operating revenues. UMMS employs 15,000 people, has more than 2,300 licensed beds and more than 120,000 annual patient admissions; which is more admissions in Maryland than any other health care provider.