Focus Management Group

Tampa, FL – October 26, 2010 – Focus Management Group (“Focus”), a nationwide business restructuring firm, today announced that its client, Johnson Memorial Medical Center (“JMMC”), has successfully emerged from Chapter 11 bankruptcy protection in accordance with its Plan of Reorganization, effective October 1, 2010.JMMC is a not-for-profit corporation operating a broad base of healthcare business units in Stafford Springs, CT and Enfield, CT including Johnson Memorial Hospital (92 bed acute care hospital), Evergreen Healthcare Center (180 bed skilled nursing facility), Home & Community Health Services, Johnson Occupational Medicine Center, Wellcare and an affiliated medical practice, Johnson Professional Associates. Formerly known as Johnson Memorial Corporation, the entity changed its name to JMMC after its emergence from bankruptcy on September 30.Focus was appointed as interim CEO, COO and CFO to JMMC in June 2008 under an order entered by the United States Bankruptcy Court District of Connecticut, Hartford Division. As interim managers, the Focus team guided the hospital through its Chapter 11 bankruptcy process and successful turnaround.

Under the reorganization plan, the hospital’s unsecured creditors will be paid at least $9.3 million over five years, of which about $1.5 million will be paid immediately. As a result of the restructuring, the hospital realized an increase in cash availability in upwards of $6.3 million and cost reductions and revenue enhancements of $10.6 million annually. JMMC’s forgiven debt, depending on certain contingent events, ranges from $19 to $20.3 million.Overseeing the Focus engagement were Managing Directors Gerry Paez and James Hopwood. Paez leads the firm’s healthcare practice and has wide-ranging experience in leading healthcare institutions to improved profitability and operating efficiency. Hopwood has extensive healthcare experience in a broad base of financial management positions, with in-depth expertise in accounting and finance, capital raising, revenue cycle management, labor productivity and cost restructuring.

“As interim managers, Focus worked closely with Johnson’s team and medical staff in taking the facility from a large negative operating loss to a significant profit,” Paez said. “We are extremely excited to see this organization transform into an economically viable and profitable entity in such a short amount of time.”

Leading the Focus interim management team at the hospital were Interim CEO Peter Betts and Interim CFO Frank Musso.

Throughout the engagement, the Patient Care Ombudsman (PCO) assigned to evaluate the quality of care at JMMC during the Chapter 11 process reported that the organization functioned without any negative impact on patient care during the reorganization. In addition, the PCO stated Johnson Memorial Hospital’s focus on quality is better than many other hospitals in the State even though it was working through a bankruptcy.

Based out of the firm’s Chicago, IL office, Paez and Hopwood can be reached at (773) 724-2082 or via e-mail at j.hopwood@focusmg.com or g.paez@focusmg.com.