Kaufman Hall Advises Catholic Medical Center on Potential Affiliation With Monadnock Community Hospital

SKOKIE, Ill. – January 28, 2017 – This past week, Catholic Medical Center (“CMC”) and Monadnock Community Hospital (“MCH”) announced they have signed a non-binding Letter of Intent (“LOI”) to explore an affiliation which will result in a more fully integrated, New Hampshire-based healthcare system. Kaufman Hall is serving as exclusive strategic advisor to CMC in pursuing a partnership with MCH.

Maintaining each organization’s respective charitable missions, values and traditions is a priority along with improving the quality, cost and access to care within New Hampshire.

“The LOI proposes a structure which will permit CMC and MCH to each operate much in the same way that they have been operating,” said Dr. Joseph Pepe, President & CEO of CMC, in a joint press release issued on January 21. “MCH will continue operating as a secular, non-profit community hospital, and CMC will continue operating as a Catholic, non-profit acute healthcare system.”

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In early 2015, Peterborough, NH-based MCH requested proposals from numerous healthcare organizations as potential partners for affiliation. Manchester, NH-based CMC was viewed as the best organization to affiliate with because past experiences and partnerships between the two healthcare providers were positive and demonstrate a record of shared culture, values and successful collaboration. 

“CMC and MCH have been working together for many years to improve access to cardiology and vascular care to patients in the Monadnock region. More recently, we have expanded our clinical partnership with CMC to include neurology and have been sharing hospitalists and laboratory services,” said Cynthia McGuire, President & CEO of MCH, in the same joint press release.

Kaufman Hall’s partnership experts have helped the CMC leadership team define a structure whereby it can:

• Create a New Hampshire-based health system
• Improve the quality, cost and access to care in the state
• Retain its Catholic identity

The Kaufman Hall team assisted CMC in preparing the indication of interest and management presentations, conducting preliminary strategic assessments and developing management relationships.

The next steps in the affiliation process include the negotiation of a definitive agreement, a mutual due diligence process, final approval of the respective hospital boards and, with respect to CMC, the approval of the Roman Catholic Bishop of Manchester. CMC and MCH are working diligently to complete the affiliation within the next 12 months.

To learn more about how Kaufman Hall is assisting healthcare organizations with partnership decisions and transactions, contact Managing Director Patrick Allen at pallen@kaufmanhall.com or 847.441.8780.