Denied UPMC merger remains best option, Jameson contends

Jameson Health System, forced by the state to consider partners other than UPMC for a merger, said Thursday that bids it received from three of them wouldn't ensure the success of the hospital.

“We continue to believe that the agreement with UPMC would position Jameson for long-term success and ensure Lawrence County has the resources and services it needs,” Lisa Lombardo, spokeswoman for New Castle-based health provider said in a statement. “While this merger is still a possibility, it is clear that the Pennsylvania attorney general is not supportive of this agreement and has continued to request that we consider other partners.”

UPMC planned to invest up to $80 million into Jameson to help pay off debt, improve aging facilities and purchase equipment for clinical programs.

Jameson's board, which disclosed the deal in September 2014, initially expected the state to approve it by March.

However, Attorney General Kathleen Kane's office rejected the merger out of concern that it could reduce competition in the region and drive up medical costs.

In August, Kane's office provided a list of more than 20 unnamed for-profit and nonprofit providers for Jameson to pursue. Jameson did not disclose the names of the three that submitted bids. But Lombardo said Jameson officials had questions about their plans for capital improvements, plans for servicing debt, how the newly formed entity would be run and long-term plans for the health system.

“The proposals from all parties were objectively presented to the Attorney General's Office by our advisory team,” she said. “The AG's Office did not acknowledge the material shortcomings of these proposals. We are disappointed at their disregard for the long-term sustainability of Jameson under the re-bid proposals.”

UPMC officials responded Thursday that they still desire a merger.

“We believe that the merger agreement, signed by both organizations' board of directors, is the best option to preserve the future of Jameson and quality health care for this region,” UPMC spokeswoman Susan Manko said. “UPMC has reaffirmed its proposal to merge with Jameson and has agreed to extend its offer through December 31.”

Jeffrey Johnson, spokesman for Kane's office, said he's confident in a resolution.

“The Office of Attorney General's primary concern is that the citizens of Lawrence County have access to affordable health care,” he said. “The Jameson board of directors has received more than one proposal that will accomplish that goal.”

Lombardo said Jameson's advisory team is talking with bidders to find ways to rectify the current proposals' shortcomings.

“Our board of directors won't settle for a deal that doesn't meet the necessary criteria and is not the best option for our community's health care consumers,” she said.

Ben Schmitt is a staff writer for Trib Total Media. He can be reached at 412-320-7991 or bschmitt@tribweb.com.