Two years ago, the hospital paid $22 million to the federal government over litigation from allegations that it profited from unneeded cardiac procedures performed by Dr. Mark Midei. CHI's report also mentioned the 2010 settlement—in which the hospital made no admission of guilt—and other related litigation.
"CHI management believes that adequate reserves have been established and that the outcome of any current investigations and collateral consequences will not have a material effect on the financial position or results of operations of the CHI Credit Group," the report stated.
The deal marks CHI's exit from the Maryland market. St. Joseph will also retain its Catholic identity under the agreement. The hospital's board made a March recommendation to CHI officials to sell the hospital's assets to UMMS after soliciting bids from Catholic and non-Catholic not-for-profit companies.
"As healthcare reform continues to evolve, the SJMC board and CHI recognized their obligation to find innovative approaches to meet the changing needs of the communities they serve while remaining true to SJMC's Catholic identity," CHI senior vice president and group executive officer Beth O'Brien said in the release. "The transfer of SJMC's assets to UMMS will position University of Maryland St. Joseph Medical Center to thrive in the future and serve the health needs of the people of Maryland."