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March 18, 1998
MEDIA CONTACTS:
Gary Stephenson, Johns Hopkins Medical Institutions
PHONE: (410) 955-5384
E-MAIL: gstephen@welchlink.welch.jhu.edu
F. John Walker, Jr., Howard County General Hospital
PHONE: (410) 740-7810
What are the major benefits of the partnership choice?
What are the major benefits for Johns Hopkins Medicine?
The union of Johns Hopkins and the Howard Health System represents a mutually shared vision to support the advancement of medical knowledge and to accelerate its accessibility to the communities they serve. In an era when consolidation of health providers is quickening, the joining of Johns Hopkins Medicine and the Howard Health System will strengthen local control of the region's most important health resources. Their missions, which reflect traditions of care and community commitment, will be advanced into the new century.
Who were the other prospective partners?
Fifteen prospective partners expressed interest in joining with the Howard Health System. Three outstanding finalists emerged from that group. Confidentiality agreements preclude identifying prospective partners or their proposals to partner with Howard Health System.
Who made the decision?
Howard County General Hospital's Board of Trustees voted unanimously to accept Johns Hopkins Medicine's proposal.
What is Johns Hopkins Medicine's financial commitment?
Hopkins has committed funds for the following:
How can Hopkins afford this commitment?
A special financing opportunity associated with the acquisition of an unrelated organization made it possible for Hopkins to commit these funds without taking resources away from its current operations or community. While Hopkins must guarantee the debt service on this financing, it expects revenue from operations of HCGH to cover this obligation.
What is the time frame of the approval process?
This is the case of one not-for-profit institution joining forces with another not-for-profit institution, so we anticipate a relatively quick, easy review process by state and federal regulatory agencies, with a closing expected in three to six months.
Will the Hospital remain a "community hospital"?
Yes, Howard County General Hospital will continue to be a comprehensive, community medical center lead by a local board, members of which represent the interests of the diverse community served by HCGH. The union of Hopkins and HCGH will combine superior academic medicine with a strong, community-focused, integrated delivery system, to benefit patients, communities, employees, physicians, and medicine itself.
What happens to the HCGH's Board of Trustees?
The agreement with Hopkins includes a provision that two-thirds of the Howard County General Hospital Board will be controlled by Howard County residents unaffiliated with Johns Hopkins. The agreement also provides that representatives of HCGH will be appointed to the Boards of Johns Hopkins Medicine and certain of its affiliates.
Will Howard County General Hospital's name change?
At the time of the closing, that is, when the regulatory agencies have signed-off on the transaction, it is expected that the name will change to include identification as a Hopkins-affiliated facility.
How will programs and services be affected?
The impetus for the partnership was the desire to improve programs, services and facilities and develop new initiatives to better serve the community and better support the needs of all community physicians.
What happens to the Howard Hospital Foundation and its Board of Trustees?
The existing not-for-profit organization will continue as a separate entity committed to providing philanthropic support for patient services, equipment and new construction at HCGH, as well as continue its mission of community outreach. Its Board of Trustees is unaffected by the partnership.
What happens to Howard County Health Services, Inc. and its Board of Directors?
HSI, the existing for-profit organization which develops and implements ventures in health-related fields to enhance programs and services throughout the Howard Health System, will continue its current functions under Johns Hopkins Medicine.
What happens to the Community Relations Council?
The 34 members of the CRC will continue to act as liaisons between HCGH and the community.
How will physicians be affected by this partnership?
Johns Hopkins Medicine values HCGH's loyal physicians and, in fact, hopes to strengthen its ties with them through greater collaboration and coordination. Greater professional opportunities to serve the community will result from this association with Hopkins.
Are employees' jobs at risk as a result of the transaction?
Hopkins values the System's dedicated management and employees and does not anticipate any changes in employment conditions that would adversely affect them as a result of the partnership.
How is the Union affected by this transaction?
The Union is not affected. The transaction stipulates that the partner recognize the existing union as the collective bargaining agent for the employees presently covered by union agreements.
What is the nature of the new foundation to be created by the Hospital's Board of Trustees with monies realized from Johns Hopkins Medicine's financial commitment?
The proposed new foundation's mission will be to promote and enhance the health and wellness of the Howard County community. As a private, not-for-profit foundation, with approximately $40 million in assets, the foundation will not raise money but will distribute funds to support various local initiatives and programs in furtherance of its mission. Howard County General Hospital's Board of Trustees is in the process of establishing the foundation.