Kaufman Hall Advises Saint Francis Care on Joining Trinity Health System
Hartford, CT-based Saint Francis Care will join Trinity Health under the terms of a definitive agreement, the two systems announced today. As a long-standing financial advisor to Saint Francis Care, Kaufman Hall assisted the organization in the evaluation of its strategic direction and partnership opportunities, providing advisory services regarding the considerations of joining a larger health system and perspective on the state of Catholic healthcare in the U.S.
The definitive agreement outlines the creation of a non-profit regional health system that includes Saint Francis Care and the Sisters of Providence Health System in Springfield, Mass., already a member of Trinity Health. The new regional health system will embody both organizations' shared commitments to Catholic values and high-quality, high-value health care.
Once the partnership is complete, Trinity Health will ensure the investment of at least $275 million over the next five years to support the health care needs of the community through capital projects in the new region
Saint Francis Care is an integrated healthcare delivery system in central Connecticut, providing access to nearly 1,000 affiliated physicians, three hospital campuses, five major access centers, 12 satellite medical offices, and a variety of community clinics. Saint Francis Hospital and Medical Center, licensed for 617 beds and 65 bassinets, is a major teaching hospital and the largest Catholic hospital in New England. Other major entities of Saint Francis Care include Mount Sinai Rehabilitation Hospital, Connecticut Joint Replacement Institute, Hoffman Heart and Vascular Institute of Connecticut, and Saint Francis HealthCare Partners.
While making significant advances across many of the core competencies successful provider systems of the future will demonstrate, the Saint Francis Board of Directors determined that the changing healthcare industry necessitated partnering with a larger health system that could offer improved access to both intellectual and capital resources
With Kaufman Hall’s guidance, Saint Francis evaluated a number of strategic opportunities and determined an affiliation with Trinity Health was the optimal pathway for better serving its patient communities and fulfilling its long-term, non-profit, Catholic mission. Kaufman Hall led the initial discussions between the leadership of Saint Francis and Trinity Health, in which it was determined there was a solid business rationale to pursue a fully integrated partnership.
"Saint Francis has consistently demonstrated its ability to be progressive in its delivery of world-class care while maintaining its long-standing Catholic tradition of quality and compassionate care," said Dan O’Connell, Chairman of the Board of Directors, Saint Francis Care, in a press release issued by the organization today. "Operating from our position of financial and clinical strength, we have been evaluating how best to position Saint Francis and continue its non-profit status as health care delivery continues to evolve, and we have concluded that this opportunity provides us with the potential to create a powerful, regional presence."
In its role as exclusive financial advisor, Kaufman Hall negotiated the material business and financial terms of the transaction, provided financial analytical support on the combined system’s financial plan, supported Board approvals, coordinated preliminary and confirmatory due diligence, and worked with legal counsel in negotiation of the definitive agreement.
"This is an important milestone expanding our ability to work with community physicians and clinicians to deliver outstanding, coordinated care to our patients and communities,” said Saint Francis Care President and CEO Christopher Dadlez, who will lead the new regional health system. "Together, we will take progressive, innovative steps on diverse fronts, like this one, to capture opportunities being presented by the revolutionary changes sweeping today’s delivery of health care. Consistent with our legacy of providing high-quality, low-cost clinical care for patients, we will continue to capitalize on initiatives that are leading-edge and sustainable, and to pioneer best-practice protocols."
The agreement has been approved by the Archdiocese of Hartford, which sponsors Saint Francis Care, and is subject to further approvals required by Canon Law, and to regulatory approvals from state and federal agencies. It is expected to be completed by late 2015.