Johnson Memorial Medical Center and St. Francis Hospital have reached an affiliation agreement that will maintain two separate, independent hospitals, officials said Monday.
Under the terms of the deal, which has been negotiated for months, Johnson Memorial, or JMMC, will become a St. Francis Care Partner, but both organizations will continue to be separately licensed institutions, with separate boards of directors.Â
St. Francis Care will be invited to participate in JMMC’s board and has committed to provide capital to support daily operations at JMMC for up to five years.Â
There would also be a clinical integration of the two hospitals’ medical staffs and a review of JMMC’s opportunities for business development, growth and process improvement.
“This affiliation agreement will help to secure JMMC’s market position in the future, and provide our patients with expanded access through services provided by Saint Francis Care,” said David Morgan, JMMC’s president and CEO. “With our independence assured, and access to new resources, we can now move forward to build and expand the services our community deserves.”
Both hospitals are now drafting final clinical affiliation and business process outsourcing agreements, which are expected to take up to 60 days for completion.
The affiliation agreement is subject to regulatory approval before it can become effective.
