The Vatican gave its approval to the merger of the University of Pittsburgh Medical Center and 441-bed Mercy Hospital of Pittsburgh, the final step toward completion of the deal. Officials said they anticipate the merger will close on Dec. 31. The Pennsylvania attorney general cleared it in May and the Federal Trade Commission in October. In a news release, Sister Margaret Hannan, president, Sisters of Mercy, Regional Community of Pittsburgh, praised the decision as it ensures that Catholic healthcare will continue uninterrupted and thousands of jobs will be preserved. Mercy will continue to operate as a Catholic hospital under the oversight of the Diocese of Pittsburgh, she added.
First announced in September 2006, the deal will guarantee continuing financial support for the Sisters of Mercy, and will establish a fund of approximately $120 million to support the local community, according to officials. UPMC also agreed to make necessary capital investments and operate Mercy as UPMC Mercy. The hospital, which is owned by Pittsburgh Mercys parent company, Catholic Health East, faced a declining patient population base in a competitive area and posted a $42 million operating loss over the three years prior to the original announcement. -- by Cinda Becker
What do you think? Post a comment on this article and share your opinion with other readers. Submit your letter to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.