The chief executive of St. Francis Healthcare System of Hawaii is retiring Jan. 1 in the wake of the closure of the group’s former hospitals in Liliha and Ewa.

Sister 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.

"It is part of the leadership succession plan established years ago by Sister Agnelle as a result of the declining number of sisters of St. Francis who have health care leadership experience," St. Francis said in a statement Tuesday.

Correa, the current chief operating officer, joined the organization in 1998 and was instrumental in negotiating on behalf of St. Francis during the bankruptcy of Hawaii Medical Center.

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

St. Francis, HMC’s main creditor, 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 — a post she has held since 2005 — she still will play an active role in the organization.

"The Sisters of St. Francis do not ‘retire’ in the traditional sense," the organization said. "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.

Blessed Marianne Cope, recently approved for canonization, founded the Franciscan Sisters’ health care ministry in the islands in 1883. St. Francis was established in 1927.