St. Francis Healthcare System of Hawaii’s chief executive is retiring Jan. 1 as its former hospitals close down. 

Sis. Agnelle Ching, who has served in executive roles at St. Francis for 14 years — most recently as president and CEO — will be replaced by Jerry Correa Jr. — the first layman to hold the position.

Correa, the current chief operating officer who joined the Roman Catholic religious order in 1998, was instrumental in resolving the bankruptcy of Hawaii Medical Center. 

HMC announced Friday that it would not sell the hospitals to an affiiate of its lender for $25 million and instead wind down operations after St. Francis objected to the sale procedure and proposed price. 

The Franciscan sisters, HMC’s main creditors, sold the hospitals in January 2007 for $68 million to HMC LLC and provided the bulk of the financing — $40.2 million — for the sale.

While Ching is retiring as CEO, she will still have an active role in the organization.

“The Sisters of St. Francis do not ‘retire’ in the traditional sense,” St. Francis said in a statement. “She will remain active in ministry and take on a new role as chief sponsorship officer for St. Francis Healthcare System of Hawaii.”

Ching will oversee mission services, the St. Francis International Center for Healthcare Ethics, spiritual services and other programs.