Jameson to review additional merger proposals

Staff report

NEW CASTLE, PA.

Jameson Health System has issued requests for proposals from a wide range of potential merger partners outside of the University of Pittsburgh Medical Center as requested by the Pennsylvania attorney general.

Jameson, located at 211 Wilmington Ave., previously had selected a proposal to merge with UPMC after a review of potential partnership opportunities with regional parties.

After selecting UPMC’s proposal, the attorney general’s office wanted Jameson to look for other partnership opportunities across a broader geography.

UPMC has reaffirmed its proposal to merge with Jameson in a transaction that would include a promise to cover all Jameson’s long-term debt and secure all of its pension liabilities.

Additionally, in the near future, UPMC would make a substantial infusion of funds to cover operating and capital needs, physician recruitment, IT advancements, and additional operational service developments, according to a news release Wednesday.

UPMC’s proposal is intended to not only provide substantial capital investments, but provides physician-recruitment resources and new medical research and innovation for Jameson. The UPMC offer has been extended through Dec. 31.

Under the terms of the solicitation process, proposals are due in about 30 days. Jameson Health System has retained Ponder & Co. as its financial adviser leading the process.

For information, interested parties should contact Chris Schoeplein at cshoeplein@ponderco.com with copies to Eb LeMaster at elemaster@ponderco.com.

Jameson Health System remains open.

The system has had to make cutbacks recently. Its maternity center closed Aug. 19.

Doug Danko, Jameson president and chief executive officer, said the discontinued service was another implication of the merger delay with UPMC.

In May, the hospital’s board of directors also had to make the decision to scale back operations at the south campus from seven days a week to weekday daytime hours. The south campus offers mostly outpatient services.